Commonwealth v. Commonwealth

353 A.2d 887, 23 Pa. Commw. 566, 1976 Pa. Commw. LEXIS 915
Commonwealth Court of Pennsylvania·Decided March 5, 1976·No. Appeal, No. 655 C.D. 1975·Published·Cited by 13 cases

Opinion

Opinion by

Judge Kramer,

This is an appeal by the Commonwealth of Pennsylvania from a final order of the Pennsylvania Public Utility Commission, adopted March 25, 1975 and entered April 8, 1975, adjudicating all of the issues presented in a public utility rate case in which the Philadelphia Electric Company (PEC) sought increased rates for electric service rendered to its customers. The only issue raised by the Commonwealth in this appeal is whether the Commission erred by permitting PEC to collect increased revenues under the lowest of three rate schedule supplements to its tariff, which were filed simultaneously to become effective on the same date, while at the same time suspending the two higher rate schedules, pending final determination of the case. PEC has filed a motion to quash the Commonwealth’s appeal, alleging that the Attorney General, in the name of the Commonwealth, may not file an appeal contesting an adjudication of the Commission. We will hold that the Commission did not commit an error of law and deny the motion to quash. To provide some understanding, it is necessary to set forth the following pertinent facts.

[569] PEC is a public utility subject to the provisions of the Public Utility Law (hereinafter Act)1. On January 31, 1974, it filed simultaneously three separate and progressively higher rate schedules designated as supplements Nos. 30, 31 and 32 to its “Tariff Electric-Pa. PUC No. 24,” each of which was designated to become effective April 1, 1974. Supplement No. 30 was designed to increase revenues 3.7 percent, or approximately $24,000,000, and by its terms was intended to supersede Supplement No. 29, which was in effect on the date of the rate filing. Supplement No. 31 was designed to increase revenues an additional 8.5 percent, or approximately $54,000,000, and was intended to supersede Supplement No. 30. Supplement No. 32 was designed to increase revenues an additional 8.8 percent, or approximately $58,000,000, and was intended to supersede Supplement No. 31. In other words, PEC intended to increase its revenues by a total of approximately $136,000,000.

On March 22, 1974, the Commonwealth filed a formal complaint, alleging that the requested increases were unjustified and unreasonable, and requesting that the proposed tariff revisions be suspended. The complaint alleged that the Commonwealth was a substantial consumer of PEC; and, in a formal answer, PEC admitted that the Commonwealth was a substantial consumer with an interest similar to that of other consumers.

On March 26, 1974, the Commission ordered an investigation of the proposed rate changes in all three of the Supplements filed by PEC. On the same date, by a separate order, the Commission suspended the effectiveness of Supplements Nos. 31 and 32 from April 1, 1974 to October 1, 1974 (six months); and by order of September 30, 1974, the Commission further suspended the two Supplements to January 1, 1975 (three months) in ac[570] cordance with the provisions of Section 308 of the Act.2 Because the commission did not suspend Supplement No. 30, the higher rates set forth therein became effective, by operation of law, on April 1, 1974, and PEC collected the additional revenues under Supplement No. 30 after that date. On January 1, 1975, at the expiration of the [571] statutory nine-month suspension, PEC began collecting the higher rates under Supplement No. 32. At no time did the Commission utilize the provisions of the Act providing for temporary rates.3

On June 26, 1974, the Commonwealth filed a “Complaint Against Collection Pursuant to Supplement 30 Filed by Philadelphia Electric Company.” The complaint alleged that Supplement No. 30 became merged into Supplement No. 32 by virtue of the simultaneous filing, and that Supplement No. 30 should be interpreted as proposing a temporary rate increase pursuant to Section 310 of the Act.

On July 11, 1974, after over three months of hearings in which the Commonwealth had actively participated, PEC filed a motion to dismiss the complaints of the Commonwealth. In its final adjudication, the Commission denied PEC’s motion to dismiss the Commonwealth’s complaints, and concluded that out of a total proposed increase in the amount of $136,000,000, approximately $30,000,000 should be disallowed. In other words, the Commission concluded that PEC had justified increased rates far in excess of the rate provided for in Supplement No. 30. The Commission did order refunds to consumers of those amounts collected after January 1, 1975, in excess of those rates finally allowed by the adjudication.

Motion To Quash

PEC has presented a motion to quash the Commonwealth’s appeal, based upon its assertion that the Attorney General, in the name of the Commonwealth, may [572] not file an appeal contesting an adjudication of the Commission. PEC contends that the decision in York v. Public Utility Commission, 8 Pa. Commonwealth Ct. 270, 281 A.2d 261 (1971), aff’d. 449 Pa. 136, 295 A.2d 825 (1972), prohibits the Commonwealth from filing a complaint with the Commission. We do not agree. York, supra, is distinguishable because in that case the Attorney General was not representing the Commonwealth as a consumer, and the Commonwealth was not a party to the proceeding at the hearing before the regulatory agency as a consumer. In this case, the Commonwealth was permitted by the Commission to file a complaint as a substantial consumer of electric service from PEC. Furthermore, PEC did not object to this intervention until after more than three months of hearings had been concluded. There is no merit to PEC’s argument that the Commonwealth, as a consumer, was intended by the Legislature to be excluded from participating in public utility rate cases. The holding in York, supra, must be limited to the facts of that case. York stands for the proposition that the Commonwealth, acting solely as a representative of the general public, may not intervene in an appeal from a decision of the Commission pursuant to Section 1104 of the Act, 66 P.S. §1434. York does not stand for the proposition that the Commonwealth, as a consumer of public utility services, may not file a complaint pursuant to Section 1001 of the Act, 66 P.S. §1391. We specifically hold that the Commonwealth may protect its rights as a consumer by filing complaints pursuant to Section 1001 of the Act, and, as a party to the proceedings, may appeal to this Court pursuant to Section 1101 of the Act, 66 P.S. §1431. PEC’s motion to quash is, therefore, denied.

Multiple Rate Filings

Our scope of review is limited to a determination of whether there was an error of law, a violation of con[573] stitutional rights, or a lack of evidence to support the Commission’s order. Section 1107 of the Act, 66 P.S. §1437.

The Commonwealth argues (1) that multistage tariff filings violate the spirit and policy of the Act and (2) that they violate that language taken from Section 308 (b) which reads as follows:

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Commonwealth v. Commonwealth, 353 A.2d 887, 23 Pa. Commw. 566, 1976 Pa. Commw. LEXIS 915 (Pa. Ct. App. 1976).

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