Connecticut Light & Power Co. v. Texas-Ohio Power, Inc.

708 A.2d 202, 243 Conn. 635, 1998 Conn. LEXIS 39
CourtSupreme Court of Connecticut
DecidedFebruary 17, 1998
DocketSC 15794
StatusPublished
Cited by72 cases

This text of 708 A.2d 202 (Connecticut Light & Power Co. v. Texas-Ohio Power, Inc.) 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. Texas-Ohio Power, Inc., 708 A.2d 202, 243 Conn. 635, 1998 Conn. LEXIS 39 (Colo. 1998).

Opinion

Opinion

CALLAHAN, C. J.

The plaintiff, the Connecticut Light and Power Company, appeals from a trial court judgment affirming a decision by the defendant department of public utility control (department),1 upon a request by the plaintiff for certain declaratory rulings.2 See Gen[638]*638eral Statutes § 4-176(a).3 In its appeal, the plaintiff raises the following three issues: (1) whether the trial court employed the proper standard of review for a conclusion of law by an administrative agency; (2) whether the trial court properly concluded that Texas-Ohio Power, Inc. (Texas-Ohio), a Texas corporation, is not an “electric light company” under General Statutes (Rev. to 1995) § 33-286 (b) and, consequently, is not prohibited, pursuant to General Statutes (Rev. to 1995) § 33-395, from selling electricity to retail customers in Connecticut, despite the lack of legislative authorization; and (3) whether the trial court properly concluded that a Texas corporation authorized under the general incorporation laws of Texas to engage in any lawful business is not a “foreign electric company” under General Statutes § 16-246a (1) and, therefore, is not prohibited by General Statutes § 16-246c from selling electricity to retail customers in Connecticut. We conclude that the standard of review applied by the trial court was too deferential. We affirm the judgment of the trial court on the second issue on alternative grounds and reverse the decision of the trial court with respect to the third issue.

The facts and procedural history are undisputed. Texas-Ohio is a Texas corporation4 operating an energy [639]*639cogeneration plant in Manchester. The cogeneration plant is located on land leased from the Central Connecticut Co-operative Farmers’ Association (Co-op). Texas-Ohio negotiated contracts to sell the electricity it generates at its plant to the Co-op, which is located on the same parcel of land as its plant, and to an adjacent landowner, the Rogers Coiporation (Rogers), both of which are former customers of the plaintiff. The contracts require Texas-Ohio to maintain poles and wires to transmit its electricity on private property only. No aspect of Texas-Ohio’s generation and transmission of electricity pursuant to its contracts with Rogers and the Co-op require it to utilize the public highways and streets.

The plaintiff, a Connecticut corporation, is a “public service company” and an “electric company” as defined by General Statutes § 16-1 (a) (4) and (8) respectively. As such, it is subject to regulation by the department, the state agency charged by § 16-1 et seq. with the regulation of public service companies, including electric companies. In return, it is legislatively protected from unauthorized competition. See Groton v. Yankee Gas Services Co., 224 Conn. 675, 685-86, 620 A.2d 771 (1993). The plaintiff is vested, by special acts of the General Assembly, with an exclusive franchise to sell electricity in Manchester.5

On August 3, 1995, the plaintiff sought a declaratory ruling from the department that Texas-Ohio’s retail sale of electricity to the Co-op and Rogers violates Connecticut statutes.6 Specifically, the plaintiff claimed that [640]*640Texas-Ohio is a foreign stock corporation and, as such, is prohibited under § § 33-395 and 33-286 (b) from selling electricity to retail customers in Connecticut without express legislative authorization.7 Additionally, the plaintiff asserted that Texas-Ohio is a “foreign electric company” under § 16-246a (1) and, therefore, is prohibited from selling electricity to retail customers in Connecticut pursuant to § 16-246c.8 The department ruled that Texas-Ohio is not an “electric company” as defined [641]*641in § 16-1 (a) (8)9 and, therefore, is not an “electric light company” under § 33-286 (b), concluding that both terms have the same meaning. It further concluded that Texas-Ohio is not a “foreign electric company” pursuant to § 16-246a (1), again because it is not an “electric company” as defined in § 16-1 (a) (8). Accordingly, the department denied the plaintiffs request for declaratory rulings.

The plaintiff appealed from the decision of the department to the Superior Court. See General Statutes §§ 16-35 and 4-183. In its memorandum of decision, the trial court concluded that the plaintiff had failed to meet its burden of proving that “the agency, in light of the [642]*642evidence, has acted arbitrarily, illegally or in abuse of its discretion.” It concluded that the department’s interpretation of the statutes at issue was “entirely reasonable” and affirmed the department’s decision without engaging in any independent statutory analysis. The plaintiff appealed from the judgment of the trial court to the Appellate Court, and we transferred the appeal to this court pursuant to Practice Book § 4023 and General Statutes § 51-199 (c).

I

The first issue presented is whether the trial court employed the proper standard in reviewing the decision of the department. The standard of review of an agency decision is well established. “Ordinarily, this court affords deference to the construction of a statute applied by the administrative agency empowered by law to carry out the statute’s purposes. . . . [A]n agency’s factual and discretionary determinations are to be accorded considerable weight by the courts. . . . Cases that present pure questions of law, however, invoke a broader standard of review than is ordinarily involved in deciding whether, in light of the evidence, the agency has acted unreasonably, arbitrarily, illegally or in abuse of its discretion. . . . Furthermore, when a state agency’s determination of a question of law has not previously been subject to judicial scrutiny . . . the agency is not entitled to special deference.” (Citations omitted; emphasis added; internal quotation marks omitted.) State v. State Employees’ Review Board, 239 Conn. 638, 645, 687 A.2d 134 (1997); see also Starr v. Commissioner of Environmental Protection, 236 Conn. 722, 735-36, 675 A.2d 430 (1996); Angelsea Productions, Inc. v. Commission on Human Rights & Opportunities, 236 Conn. 681, 688, 674 A.2d 1300 (1996); SLI International Corp. v. Crystal, 236 Conn. 156, 170-71, 671 A.2d 813 (1996); Dept. of Administrative Services v. Employees’ Review Board, 226 [643]*643Conn. 670, 678-79, 628 A.2d 957 (1993); Lieberman v. State Board of Labor Relations, 216 Conn. 253, 263, 579 A.2d 505 (1990); State Medical Society v. Board of Examiners in Podiatry, 208 Conn. 709, 718-19, 546 A.2d 830 (1988). “ ‘[I]t is for the courts, and not administrative agencies, to expound and apply governing principles of law.’ ” (Emphasis added.) Connecticut Hospital Assn., Inc. v. Commission on Hospitals & Health Care, 200 Conn.

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Bluebook (online)
708 A.2d 202, 243 Conn. 635, 1998 Conn. LEXIS 39, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connecticut-light-power-co-v-texas-ohio-power-inc-conn-1998.