Connecticut Light & Power Co. v. Department of Public Utility Control

554 A.2d 1089, 210 Conn. 349, 1989 Conn. LEXIS 54
CourtSupreme Court of Connecticut
DecidedMarch 14, 1989
Docket13480
StatusPublished
Cited by20 cases

This text of 554 A.2d 1089 (Connecticut Light & Power Co. v. Department of Public Utility Control) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connecticut Light & Power Co. v. Department of Public Utility Control, 554 A.2d 1089, 210 Conn. 349, 1989 Conn. LEXIS 54 (Colo. 1989).

Opinion

Covello, J.

This is an appeal from a declaratory ruling of the department of public utility control (DPUC). [351]*351It comes to us by way of reservation from the Superior Court. The dispositive issue is whether DPUC correctly concluded that General Statutes § 16-243e required the plaintiff, Connecticut Light and Power Company (CL&P), to purchase all of the electrical output of the defendant Southeastern Connecticut Regional Resources Recovery Authority (SCRRRA) at the so-called “municipal rate.” We conclude that General Statutes § 16-243e does not require this and therefore order a remand for further proceedings.

Examination of the record discloses that on June 8, 1987, SCRRRA filed a petition with DPUC pursuant to General Statutes §§ 4-176,1 16-243a (c),2 and 16-243e.3 The petition sought a declaratory ruling [352]*352determining the amounts and the prices that CL&P would be required to pay for the electrical output generated by the SCRRRA municipal solid waste disposal facility.

In accordance with General Statutes § 16-2 (c),4 the matter was assigned to a panel of three of DPUC's five commissioners for a hearing and decision. Pursuant to General Statutes § 16-8 (a),5 a member of DPUC’s staff, who was also a member of the Connecticut bar, was designated as a hearing examiner to conduct the hearing, ascertain the facts, and make a report thereon to the commissioners. Following six public hearings on the matter, the three commissioners issued their unanimous ruling on October 9,1987. The gravamen of their decision was that General Statutes § 16-243e mandated that (1) the plaintiff CL&P was to purchase all of SCRRRA’s electrical output, and (2) CL&P was to pay SCRRRA for the electricity at the “municipal rate.”

On November 5,1987, CL&P filed an administrative appeal in the Superior Court pursuant to General Stat[353]*353utes §§ 16-356 and 4-183 (a),7 naming as defendants, DPUC, consumer counsel and SCRRRA. Thereafter, on December 14, 1987, the trial court, Shaughnessy, Jgranted motions to intervene filed by the defendant towns of Groton, Guilford, East Lyme, Griswold, Ledyard, New London, North Stonington, Stonington and Preston. On April 11,1988, pursuant to their stipulation and at the request of all the parties, the court, Allen, J., reserved the matter for the consideration and advice of the Appellate Court in accordance with Practice Book §§ 41478 and 4148.9 On August 4, 1988, we transferred the matter to ourselves pursuant to Practice Book § 4023.

The defendant SCRRRA is a municipal resource recovery authority established by the joint resolution of its eleven member towns,10 in accordance with the provisions of General Statutes § 7-273aa.11 SCRRRA proposes to build in the town of Preston a $72,000,000 [354]*354private power production facility12 that is designed to dispose of municipal solid waste. The waste will be burned through the use of a mass-burning grate system and boiler combination to produce steam that will in turn energize turbines and thereby generate electricity. The Preston facility will not only serve the salutary function of producing electricity, but will also provide the member towns with a means of disposing of their solid waste at a time when their available landfill space is dwindling rapidly.

The plaintiff CL&P is a public service company that sells gas and electricity to its various customers throughout Connecticut. It either purchases the electricity at a wholesale price or generates the electricity at a cost that is generally lower than the price for which it sells it to others. In regulatory parlance, this is called the “avoided cost” of the electricity. See General Statutes § 16-243a (a).13 This must be contrasted with the higher “municipal rate” which is the amount that CL&P charges it municipal customers. See General Statutes § 16-243e, footnote 3, supra.

CL&P’s customers include residents in eight of the eleven communities belonging to SCRRRA. Its service area, however, does not include the town of Norwich, the Jewett City borough of Griswold or the entire city [355]*355of Groton and a portion of the town of Groton. Approximately 30 percent of the total tonnage to be consumed at the SCRRRA solid waste facility will come from these three communities whose residents are not CL&P customers.

As owner of the proposed private power production facility, SCRRRA will be a private power producer within the meaning of General Statutes § 16-243b (a) (3).14 CL&P, as a public service company, is required under the provisions of § 16-243a (b) to “[p]urchase any electrical energy and capacity made available, directly by a private power producer [SCRRRA].” The rate to be paid for the electricity generated by the private power producer is to be “based on the full avoided costs of the electric public service company . . . .” General Statutes § 16-243a (c) (2).

SCRRRA’s facility, however, in addition to being a private power production facility will also be a resources recovery facility within the meaning of General Statutes § 22a-260 (11).15 This being the case, a public service company such as CL&P is required to purchase the electrical output of such a facility “at the same rate that the electric company charges the municipality or municipalities for electricity.” General Statutes § 16-243e.16 Thus, by paying the higher “municipal [356]*356rate,” the stockholders and customers of public service companies subsidize the resources recovery facility by purchasing its electrical output at a price higher than the public service company could purchase it or generate it elsewhere.

The DPUC ruling concluded that § 16-243e required CL&P to purchase all of SCRRRA’s electrical output for twenty-five years and to pay for the same at the “municipal rate” for the first twenty years of the contract. Over the term of the contract, the resulting CL&P subsidy is estimated to be $105,000,000.

CL&P appealed this ruling contending that § 16-243e as construed by DPUC: (1) preempts the letter and purposes of the federal Public Utility Regulatory Policies Act of 1978 in violation of the supremacy clause of the United States constitution; (2) violates the commerce clause of the United States constitution; (3) unconstitutionally takes CL&P’s property for public use without just compensation; and (4) unconstitutionally deprives CL&P of the equal protection of the laws. CL&P further argues that DPUC misconstrued § 16-243e in entering its order. We agree with CL&P that the statute was misapplied to the factual circumstances evident here and do not, therefore, reach the constitutional issues raised. We, therefore, remand the matter for further proceedings.

CL&P argued to DPUC that only 70 percent of the municipal solid waste that would fuel the resources recovery facility came from municipalities served by CL&P.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Finan
881 A.2d 187 (Supreme Court of Connecticut, 2005)
Raymond v. Norwalk Zba, No. Cv 98 035 44 34s (May 1, 2001)
2001 Conn. Super. Ct. 7303 (Connecticut Superior Court, 2001)
Raymond v. Norwalk Z. B. of App., No. Cv 98 035 44 34s (Apr. 30, 2001)
2001 Conn. Super. Ct. 5741-fj (Connecticut Superior Court, 2001)
Gil v. Courthouse One
687 A.2d 146 (Supreme Court of Connecticut, 1997)
Southeastern Conn. v. Dept. of Public Ut., No. Cv95 0555212 (Jan. 7, 1997)
1997 Conn. Super. Ct. 210-II (Connecticut Superior Court, 1997)
Angelsea Productions, Inc. v. Commission on Human Rights & Opportunities
674 A.2d 1300 (Supreme Court of Connecticut, 1996)
Lockwood v. Professional Wheelchair Transportation, Inc.
654 A.2d 1252 (Connecticut Appellate Court, 1995)
New Haven Firebird Society v. Board of Fire Commissioners
630 A.2d 131 (Connecticut Appellate Court, 1993)
Department of Administrative Services v. Employees' Review Board
628 A.2d 957 (Supreme Court of Connecticut, 1993)
Starr v. Commissioner of Environmental Protection
627 A.2d 1296 (Supreme Court of Connecticut, 1993)
Help Line v. Administrator, No. Cv89 02 89 67s (Aug. 31, 1990)
1990 Conn. Super. Ct. 763 (Connecticut Superior Court, 1990)
Roto-Rooter Services v. State Dept. of Labor, No. 351874 (Jul. 20, 1990)
1990 Conn. Super. Ct. 400 (Connecticut Superior Court, 1990)
Muffler Shop, E. Hartford v. Dept. of Labor, No. 332678 (Jul. 20, 1990)
1990 Conn. Super. Ct. 391 (Connecticut Superior Court, 1990)
Connecticut Lp v. Public Util. Control, No. Cv-90-372799 (Jul. 19, 1990)
1990 Conn. Super. Ct. 481 (Connecticut Superior Court, 1990)
Town of Preston v. Connecticut Siting Council
568 A.2d 799 (Connecticut Appellate Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
554 A.2d 1089, 210 Conn. 349, 1989 Conn. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connecticut-light-power-co-v-department-of-public-utility-control-conn-1989.