Duquesne Light Co. v. Pennsylvania Public Utility Commission

715 A.2d 540, 1998 Pa. Commw. LEXIS 627
CourtCommonwealth Court of Pennsylvania
DecidedJuly 22, 1998
DocketNos. 2663, 2666 and 2761 C.D. 1996
StatusPublished
Cited by2 cases

This text of 715 A.2d 540 (Duquesne Light Co. v. Pennsylvania Public Utility Commission) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duquesne Light Co. v. Pennsylvania Public Utility Commission, 715 A.2d 540, 1998 Pa. Commw. LEXIS 627 (Pa. Ct. App. 1998).

Opinion

LEADBETTER, Judge.

These are consolidated appeals taken from a final order of the Pennsylvania Public Utility Commission. The order dismissed a complaint filed by the Township of Findlay without a formal hearing. By the complaint, the Township sought a means to obtain lower cost electric service in the Township. We remand.

In 1993, the Township of Findlay (Township) filed a formal complaint on its behalf and on behalf of its residents against Du-quesne Light Company (Duquesne) and West Penn Power Company (West Penn) with the Pennsylvania Public Utility Commission (Commission). Duquesne provides electric service within the Township; neighboring communities are served by West Penn. By its complaint, the Township sought an order from the Commission directing Duquesne and West Penn to show cause why 1) West Penn should not be required to offer service to the residents of the Township; or 2) Du-quesne should not be required to establish tariffs setting reasonable rates to “wheel”1 power to end users in the Township; or 3) Duquesne should not be required to offer for sale to the residents of the Township electricity at the same price which Duquesne pro[542]*542posed to sell electricity to certain companies within General Public Utilities (GPU). The Township complained that Duquesne receives a rate for electric service that is more than twice the amount paid by residents of adjoining communities served by West Penn and that Duquesne offers reduced rates to select customers. On December 29, 1993, the Office of Consumer Advocate (OCA)2 filed a notice of intervention.3 On January 10,1994, Duquesne and West Penn individually answered the complaint and moved to dismiss. Duquesne asserted several grounds for dismissal, including lack of representational standing, lack of Commission authority to mandate “retail wheeling” 4 under the Public Utility Code (Code), 66 Pa.C.S. §§ 101— 3316, and public policy. West Penn argued that the Township had no right to demand service from West Penn absent a Commission order altering the existing service territories. After hearing arguments on the motions to dismiss, an administrative law judge (ALJ) certified material questions to the Commission pertaining to whether the Code (as it existed prior to the December, 1996 amendments) conferred upon the Commission authority to mandate retail wheeling.

By order entered August 31, 1994, the Commission recognized that substantial pressure existed in the Commonwealth and nationwide to permit increased competition among electric utilities as a means of lowering rates. The Commission identified the Township’s complaint seeking competition in retad sales as the first of its kind before the Commission, with others expected to follow. It was precisely in this context that the Commission initiated its Investigation Into Electric Power Competition (Investigation)5 on May 10, 1994. The Commission eonclud-ed that it was unwise to attempt to resolve retail wheeling issues on a case-by-case basis due to the complex technical, policy and legal issues involved. Accordingly, the Commission “suspended and/or severed” the retail wheeling issues from the complaint pending a final determination in the Investigation. The Commission further directed the development of the record in this proceeding on the remaining issues, namely: whether the Township has standing to bring the complaint on behalf of its residents, or only on its own behalf as an electric customer of Du-quesne; whether there should be changes in the certificated service territories of Du-quesne and West Penn for the provision of service within the Township by West Penn; and whether Duquesne could provide service at lower rates, similar to the discounts given to certain customers who threaten to leave Duquesne’s system. The Commission observed: “[I]t is reasonable, appropriate and in the public interest to direct the presiding ALJ to proceed with the evidentiary hearings to develop a clear, coherent and complete record culminating in the issuance of an Initial Decision.” Opinion and Order, August 31, 1994, at 12.

On February 2, 1995, the second prehear-ing conference was held. At this hearing, the Township clarified that it was not seeking an order that would remove the Township from Duquesne’s service territory, rather it was seeking an order that would expand West Penn’s service territory such that Duquesne and West Penn would have overlapping certificated service territories within the Township. The Township also withdrew its request concerning rates proposed for GPU companies in favor of receiv[543]*543ing the discounts Duquesne gives to certain customers who threaten to leave the system. Following this prehearing conference, the Township submitted a joinder signed by 232 individuals having either an ownership or leasehold interest in the Township and using electricity supplied by Duquesne.

By initial decision issued September 21, 1995, without having held a hearing, the ALJ concluded that the Township had the necessary standing to prosecute the complaint against Duquesne in its own name and on behalf of its citizens, residents and taxpayers. However, the ALJ dismissed the complaint for lack of jurisdiction to order West Penn to extend its service beyond the boundaries of its certificated service territory so as to provide public electric service within the Township. The ALJ noted that West Penn had not made an application to service the new area. Duquesne and the Township filed exceptions to the initial decision. One of the exceptions raised by the Township was that the complaint was dismissed without entry of an order clarifying the status of the “severed and/or suspended” retail wheeling issues raised by the complaint.6

On September 4, 1996, in a split decision, the Commission addressed the complaint in its entirety, including the retail wheeling issues.7 The Commission determined that the interests of administrative efficiency required the Township to be granted representational standing to prosecute the complaint and that the Commission possessed substantial implied authority to reach the merits of the complaint. Nevertheless, the Commission concluded that “substantial public policy considerations ... counsel against using Commission authority which would produce the result of introducing competition in the municipality of Findlay-” Opinion and Order, September 4, 1996, at 18. Thus, the Commission entered an order which states in pertinent part:

IT IS ORDERED;
1. That the Formal Complaint of Find-lay Township, be, and is, hereby, DISMISSED,....
2. That the Initial Decision of the presiding ALJ concerning his recommendation with respect to jurisdiction of this Commission to entertain the instant Formal Complaint of Findlay Township is reversed. ...
3. That the Initial Decision of the presiding ALJ concerning his grant of standing to Findlay Township to prosecute this action in a representative capacity is, hereby, affirmed....

Order, September 4, 1996. The Township, Duquesne and West Penn petitioned this Court to review the Commission’s order. Petitioners also filed notices of intervention in each other’s appeals. This Court sua sponte ordered consolidation of the three petitions. Various motions challenging each petition for review are pending before this Court,8

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Bluebook (online)
715 A.2d 540, 1998 Pa. Commw. LEXIS 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duquesne-light-co-v-pennsylvania-public-utility-commission-pacommwct-1998.