Fulton Light, Heat & Power Co. v. Seneca River Power Co.

123 Misc. 585, 205 N.Y.S. 821, 1924 N.Y. Misc. LEXIS 1148
CourtNew York Supreme Court
DecidedAugust 15, 1924
StatusPublished
Cited by2 cases

This text of 123 Misc. 585 (Fulton Light, Heat & Power Co. v. Seneca River Power Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fulton Light, Heat & Power Co. v. Seneca River Power Co., 123 Misc. 585, 205 N.Y.S. 821, 1924 N.Y. Misc. LEXIS 1148 (N.Y. Super. Ct. 1924).

Opinion

Smith, J.

The plaintiff invokes the injunctive powers of the court to restrain the defendant from maintaining in the city of Fulton, N. Y., a plant for the distribution of electricity, from selling, distributing or furnishing electricity in said city, and from the exercise of any franchise it owns or claims to own for that purpose within said city in violation of section 68 of the Public Service Commission Law, and that the defendant be directed to remove all its poles, wires and other electrical equipment within the corporate limits of said city.

Both the parties to this suit are public service corporations organized under the Transportation Corporations Law, and both are subject to the provisions of the Public Service Commission Law. The plaintiff has a franchise which authorizes it to use the streets of the city of Fulton, N. Y., for the purpose of distributing electricity to the city and the citizens thereof. It is operating under this franchise. The defendant has no such operative franchise. The defendant has a plant for the production of electrical current at Baldwinsville, N. Y., and under franchises does municipal lighting for the villages of Baldwinsville, Phoenix, Hannibal, Cato, Meridian and Fair Haven; it furnishes electrical current to persons in the said villages and also in the towns of Lysander, Phoenix, Yolney, Scriba and Granby; it supplies the Mexico Electric Lighting Company in the village of Mexico and the Northern Cayuga Power and Light Company. The above distribution is under franchises for towns or villages and is not here under consideration. It furnishes electricity for lighting, heating and power purposes. [587]*587It covers in its distribution a wide territory and has between 1,500 and 2,000 customers, and uses between 5,000 and 6,000 horse power. In addition to producing electrical energy at its own plant, it pinchases current generated at Niagara Falls.

In or about the year 1910 on land owned by it in the city of Fulton, N. Y., it or its predecessor built a substation for the purpose of reducing or transforming the current of the main transmission line which is operated at 33,000 volts having a frequency of sixty cycles per second, to a voltage of 6,600, with a frequency of twenty-five cycles per second, for use in this form on certain of its transmission lines. From this substation the Northern Cayuga Light and Power Company, ten miles away, and the village of Hannibal, eight miles away, are served. This station was constructed with the knowledge of the public service commission. It cost about $10,000, and this expenditure was subsequently recognized by the public service commission as a basis for the issue of new capital by the defendant.

The right of the defendant to distribute electricity outside of the city of Fulton, N. Y., is not questioned. It appears, however, that for some thirteen years the defendant or its predecessors has been furnishing electric current for light and power purposes to the North End Paper Company which operates a paper mill in said city, and that it furnishes electricity for lighting purposes to five private persons, two of whom are its own employees at the substation. In the distribution of the current to the North End Paper Company and to these few private customers, the defendant crosses no streets or public places, but its transmission lines run entirely over property which it owns or has acquired the right to use from the owners of it.

The plaintiff’s plant transmits electrical current with a frequency of sixty cycles per second; the North End Paper Company equipment is for the use of current with a frequency of twenty-five cycles per second. The defendant also furnishes current for power purposes to the Victoria Paper Mills which requires a current with a frequency of twenty-five cycles. In order to reach this property it is necessary to use the public streets of the city, for which purpose the defendant has no franchise but the plaintiff has a franchise. To accommodate the Victoria Paper Mills Company, the plaintiff entered into an agreement with it, which recites fully the circumstances, the differences in current, frequency, the great expense that would- be caused to the Victoria Paper Mills Company to change over its electrical equipment so as to use the current of the plaintiff, and which provides that the plaintiff will construct and maintain a transmission line to carry the current of [588]*588the defendant to the Victoria Paper Mills and limits the use of said line to any purpose excepting the transmission of.electricity from the defendant to the plant of the Victoria Paper Mills for its exclusive use. For the maintenance of this short transmission line the plaintiff receives compensation from the Victoria Paper Mills, and with the knowledge and consent of the plaintiff, the defendant is using this line to transmit current to the Victoria Paper Company; the plaintiff seeks no injunction herein restraining such distribution. It only seeks to restrain th.e maintenance of the substation by the defendant, and the distribution of electricity therefrom to the North End Paper Company and the few customers noted. The defendant in the distribution of this current is exercising no franchise to use the streets, parks or public places of the city of Fulton; it here occupies no public property.

The grounds upon which the plaintiff seeks an injunction are that the. public service commission has never approved the distribution by the defendant of electricity for any purposes within the limits of the city of Fulton, N. Y., and that it never granted to the defendant permission to construct a transforming or reducing station within the limits of the city of Fulton. It is the contention of the defendant that for the distribution of electrical current which it makes within the limits of the city of Fulton, it is unnecessary for it to seek any franchise whatsoever from the city of Fulton for the reason that it does not make use of the instrumentalities within the control of the city as such, to wit, the streets or public places thereof; that exercising no rights of franchise, it in no way interferes with any franchise or other rights of the plaintiff, and that it has violated no provision of the Public Service Commission Law, and that plaintiff is not in position to maintain this action. Furthermore that this being a suit in equity there is an adequate remedy at law, and no basis has been shown from which any damage occasioned by the act of the defendants to the plaintiff can be calculated. Furthermore that the conditions complained of have been existing unrestrained openly and notoriously to the knowledge of the plaintiff for some thirteen years, and it should not now be permitted after such long neglect, to disturb existing and established conditions, thereby affecting valuable property rights.

From the statement of the questions involved, it is apparent that in order to attain an understanding or to be able clearly to state the principles of law and of equity applicable, it is necessary to inquire into the nature and functions of public service corporations, of franchises and of the public service commission in respect thereof as they affect public and private rights. The Public [589]*589Service Commissions Law became operative July 1,1907; it worked a radical change in the conditions under which public service corporations had operated. Prior to this act there was competition between public service corporations leading to highly competitive conditions and to financial situations which impaired the integrity of securities issued to the public by such corporations.

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Bluebook (online)
123 Misc. 585, 205 N.Y.S. 821, 1924 N.Y. Misc. LEXIS 1148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fulton-light-heat-power-co-v-seneca-river-power-co-nysupct-1924.