Douglas Electric Cooperative v. Central Lincoln People's Utility District

991 P.2d 1060, 164 Or. App. 251, 1999 Ore. App. LEXIS 2017
CourtCourt of Appeals of Oregon
DecidedNovember 24, 1999
Docket97 CV 4616CC; CA A102812
StatusPublished
Cited by3 cases

This text of 991 P.2d 1060 (Douglas Electric Cooperative v. Central Lincoln People's Utility District) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Douglas Electric Cooperative v. Central Lincoln People's Utility District, 991 P.2d 1060, 164 Or. App. 251, 1999 Ore. App. LEXIS 2017 (Or. Ct. App. 1999).

Opinion

*253 BREWER, J.

Defendant, Central Lincoln People’s Utility District (District), appeals from a trial court judgment determining that, pursuant to a contract between plaintiffs Douglas Electric Cooperative (Douglas) and International Paper Company (IP), Douglas has the right to sell electric power to IP for use in its Gardiner, Oregon mill (the mill), and IP has the right to obtain such electric utility services from Douglas, even though the mill is located within District’s boundary. The central issue presented in this appeal is whether Article XI, section 12, of the Oregon Constitution (section 12), or the provisions of ORS chapter 261 give a people’s utility district the exclusive right to provide electric energy within District’s boundary. The trial court concluded that a people’s utility district has no such exclusive right. We agree and, therefore, affirm.

The parties disagree about our standard of review of the trial court’s findings. District argues that our review is de novo and Douglas and IP contend that we should review for substantial evidence. We need not resolve that disagreement, because the pertinent facts do not appear to be in dispute and because no party assigns error to or otherwise complains about any of the trial court’s findings:

“1. [Douglas] is an Oregon cooperative corporation organized under Chapter 62 of the Oregon Revised Statutes to provide electric utility services in the State of Oregon. Douglas serves customers in Coos, Douglas and Lane counties.
“2. [IP] is a New York Corporation engaged in the business of making paper products. IP owns and operates a mill located in Gardiner, Douglas County, Oregon ([the mill]). [The mill] produces liner board.
“3. [District] is a people’s utility district formed pursuant to ORS Chapter 261 and under authority of [section 12].
“4. [The mill] is located within the political boundaries of [District].
*254 “5. [District] has since 1962 supplied the electric power requirements of [the mill]. Currently, [District] supplies those requirements pursuant to a contract that terminates on December 31,1998.
“6. On September 18, 1997, Douglas and IP entered into a contract under which Douglas agreed to supply and IP agreed to purchase the electric power requirements of [the mill], including transmission and metering services, commencing on January 1,1999.
“7. Douglas operates electric distribution facilities in the vicinity of [the mill]. To provide electric service to [the mill], Douglas must make modifications to its facilities and to its point of interconnection with the Bonneville Power Administration (‘BPA’).
“8. In October 1997, IP informed [District] that IP intended Douglas to be its electric utility provider beginning January 1,1999.
“9. [District] denies that Douglas has a legal right to provide electric service to [the mill], and refuses to cooperate with IP and Douglas in the implementation of the contract between IP and Douglas.
“10. [District], under ORS Chapter 758, specifically ORS 758.435, has recently applied to the Oregon Public Utility Commission [(PUC)] for an allocation of an exclusive service territory to serve customers, including IP, within its political boundaries.
“11. The application mentioned above is at this time pending before [PUC],
“12. Douglas is not presently serving IP.
“13. The Gardiner Substation of BPA needs to be modified in order to allow Douglas to provide electric service to [the mill]. Should Douglas establish the legal right under State law to provide electric service to [the mill], BPA will perform the necessary work so that Douglas will be able to provide the electric service.
“14. A finding that [District] does not have an exclusive territory within its political boundaries may result in a rate increase to its remaining customers and may have a negative impact bn [District] in the bond market.”

*255 District’s application to PUC for an exclusive allocated territory, including the Gardiner mill area, was pending when the trial court entered its judgment. Subsequently, that application was denied, although PUC later allocated other territory to District. 1

When District refused to cooperate with Douglas and IP in implementing their contract, and when BPA refused to consent to the necessary modification of its substation until Douglas’s right to serve the mill was established, plaintiffs brought this declaratory judgment proceeding. They contended that neither section 12 nor ORS chapter 261 gives District the exclusive right to serve the mill and that the provisions of ORS 758.400 to ORS 758.475 instead provide the means by which a utility, including a people’s utility district, can obtain an exclusive right to serve a designated area. In response, District argued that its exclusive right to serve customers within its district boundaries, including the mill, was guaranteed by section 12 or by the terms of ORS chapter 261.

The trial court did not agree with District. The court concluded that “[njothing in [section 12 or in ORS chapter 261] gives [District] or any other people’s utility district the exclusive right to serve customers within their political boundaries.” (Emphasis in original.) Based on that conclusion, the trial court determined that, pursuant to the contract between Douglas and IP, “beginning January 1,1999, IP has the right to obtain electric utility services from Douglas * * * and Douglas has the right to sell and deliver electric power over its distribution system to IP.” On appeal, District attacks those conclusions, contending that the trial court erred and that it has the exclusive right to serve those within its boundaries, irrespective of whether it has been granted an allocated territory by PUC.

We begin our analysis by examining the provisions of section 12. Normally, we would begin with nonconstitutional issues and first consider District’s statutory claims. Leo v. Keisling, 327 Or 556, 560, 964 P2d 1023 (1998). Here, we do *256 not follow that customary route because the essence of District’s claim based on ORS chapter 261 is that the statutes cannot detract from the authority granted to people’s utility districts by section 12. Because District’s statutory claim appears to depend, in the first instance, on an interpretation of the constitutional provision itself, we begin our analysis there.

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Cite This Page — Counsel Stack

Bluebook (online)
991 P.2d 1060, 164 Or. App. 251, 1999 Ore. App. LEXIS 2017, Counsel Stack Legal Research, https://law.counselstack.com/opinion/douglas-electric-cooperative-v-central-lincoln-peoples-utility-district-orctapp-1999.