Grindsted Products, Inc. v. Kansas City Power & Light Co.

901 P.2d 20, 21 Kan. App. 2d 435, 1995 Kan. App. LEXIS 128
CourtCourt of Appeals of Kansas
DecidedAugust 4, 1995
DocketNo. 72,456
StatusPublished
Cited by13 cases

This text of 901 P.2d 20 (Grindsted Products, Inc. v. Kansas City Power & Light Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grindsted Products, Inc. v. Kansas City Power & Light Co., 901 P.2d 20, 21 Kan. App. 2d 435, 1995 Kan. App. LEXIS 128 (kanctapp 1995).

Opinion

Brazil, C.J.:

Grindsted Products, Inc., (Grindsted) appeals the district court’s dismissal of its claim for lack of subject matter jurisdiction. Grindsted argues that a claim for damages under K.S.A. 66-176 need not be first determined by the Kansas Corporation Commission (KCC). We affirm the district court’s order dismissing Grindsted’s action.

The facts are largely undisputed on appeal. Grindsted manufactures bulk food products. Kansas City Power & Light Company (KCP&L) provides electricity to Grindsted’s manufacturing plant in Johnson County, Kansas. KCP&L charges Grindsted for service [436]*436pursuant to the general service-large (GL) tariff. The GL tariff has been approved by the KCC and is on file with the commission.

Effective July 1988, KCP&L created an Economic Development Rider (EDR) to provide incentive rates for eligible customers. The KCC approved tire EDR. The stated purpose of the EDR was to encourage “industrial and commercial business development in Kansas. These activities will attract capital expenditures to the State, diversify the Company’s customer base, create jobs and serve to improve the utilization efficiency of existing [KCP&L] facilities.”

The EDR’s discounted rates are only available in conjunction with government economic development programs where incentives have been offered to locate or expand facilities in the KCP&L service area. The EDR rates apply only to new customers or to existing customers who install separately metered facilities. The rates apply only to those facilities not selling or providing goods and/or services to the general public.

Grindsted began planning an expansion of its existing manufacturing site. Grindsted, through its agents, spoke with KCP&L about the electric service and rates to be charged at the expansion facility. Grindsted completed the separately metered expansion facility in May 1990. Electrical service to the expansion facility was billed at the GL rate with no EDR discount.

Grindsted became aware of the EDR discount in 1993. Grindsted asked KCP&L to bill the facility at the discounted rate because it was eligible under the terms of the EDR. KCP&L stated that the incentives were designed to encourage businesses to build or expand in the KCP&L service area “where the customer decision to build, relocate or expand has not been made.” KCP&L noted that Grindsted had decided to expand its facility prior to learning about the EDR incentives; thus, the provisions of the EDR did not apply.

Grindsted filed suit in district court, alleging that KCP&L misconstrued the language of the EDR to Grindsted’s detriment. Grindsted alleged that the EDR applied to it and KCP&L currently charged rates for service in excess of those authorized by law. Grindsted sought refund of the excess charges. Further, Grindsted [437]*437sought treble damages, attorney fees, and costs pursuant to K.S.A. 66-176.

Grindsted simultaneously filed a complaint with the KCC alleging that KCP&L had discriminated against it in failing to inform Grindsted of the provisions of the EDR, KCP&L had incorrectly interpreted the EDR, and KCP&L had as a result overcharged Grindsted for service. Grindsted asked the KCC to enter an order determining that KCP&L improperly failed to apply the EDR tariff and requiring KCP&L to serve Grindsted under the EDR tariff.

KCP&L filed a motion to dismiss for lack of subject matter jurisdiction in the district court. The district court granted KCC’s motion to intervene for the limited purpose of addressing the jurisdiction issue. The KCC also filed a motion to dismiss for lack of subject matter jurisdiction. The district court granted the motions after oral argument.

In its brief, the KCC states that the commission reviewed the issues and claims set forth by Grindsted and dismissed the claim on its merits. Grindsted filed a petition for reconsideration, which was denied. Following oral argument, KCP&L provided this court with a certified copy of a petition for judicial review and a copy of the KCC’s order.

Grindsted argues that the district court erred in dismissing its claim for lack of jurisdiction. Whether the district court has jurisdiction is a question of law over which this court has unlimited review. Zion Lutheran Church v. Kansas Comm’n on Civil Rights, 16 Kan. App. 2d 237, 239, 821 P.2d 334 (1991), affirmed 251 Kan. 206, 830 P.2d 536 (1992).

The district court set out its decision as follows:

“1. Plaintiff’s Petition requests the Court to construe Defendant’s EDR tariff and determine that Plaintiff has been charged excessive rates for electric service by Defendant;
“2. The controlling cases are Southwestern Bell Telephone Co v. Kansas Corporation Commission, 233 Kan. 375 (1983), which recognizes the jurisdiction of the Kansas Corporation Commission (KCC) to interpret and construe rate tariffs; and Denison Mutual Telephone v. Kendall, 195 Kan. 227 (1965), which holds that parties who complain that a public utility has charged excessive rates should first invoke the relief provided by the Public Utilities Act before resorting to the courts;
[438]*438“3. In addition, the factors set forth in Hamilton v. United Telephone Co. of Kansas, 6 Kan. App. 2d 885 (1981) underscore the need for the KCC’s expertise in determining the issues raised by Plaintiff in the first instance, and;
“4. Plaintiff’s claim, as stated in its Petition, is premature, and Plaintiff’s Petition has not stated a cause of action, and therefore the Motions to Dismiss for Lack of Subject Matter Jurisdiction should be granted and this case dismissed.”

Grindsted first argues that its claim for damages based on excessive charges may be brought directly to the district court without KCC review. Grindsted cites K.S.A. 66-176, which states:

“Any public utility or common carrier which shall violate any of the provisions of law for the regulation of such public utilities or common carriers shall forfeit, for every offense, to the person, company or corporation aggrieved thereby, three times the actual damages sustained by the party aggrieved, together with the costs of suit, and a reasonable attorney fee, to be fixed by the court; and if an appeal be taken from the judgment or any part thereof, it shall be the duty of the appellate court to include in the judgment an additional reasonable attorney’s fee for services in the appellate court or courts?’

Grindsted argues that the statute establishes a cause of action for damages separate from administrative relief through the KCC. K.S.A. 66-176 was enacted in 1883 and, prior to 1995, had not been amended since 1923. Kearney v.

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

Related

Green v. Blake
D. Kansas, 2019
Hayes Sight & Sound, Inc. v. Oneok, Inc.
136 P.3d 428 (Supreme Court of Kansas, 2006)
Jp Morgan Trust Co. Nat. v. Mid-America Pipeline
413 F. Supp. 2d 1244 (D. Kansas, 2006)
Hill v. Kansas Gas Service Co.
191 F. Supp. 2d 1200 (D. Kansas, 2002)
Citizens' Utility Ratepayer Board v. State Corp. Commission
16 P.3d 319 (Court of Appeals of Kansas, 2000)
St. Francis Mercantile Equity Exchange, Inc. v. Newton
996 P.2d 365 (Court of Appeals of Kansas, 2000)
Gentzel v. Williams
965 P.2d 855 (Court of Appeals of Kansas, 1998)
Nora H. Ringler Revocable Family Trust v. Meyer Land and Cattle Co.
958 P.2d 1162 (Court of Appeals of Kansas, 1998)
United Cities Gas Co. v. Brock Exploration Co.
995 F. Supp. 1284 (D. Kansas, 1998)
Grindsted Products, Inc. v. Kansas Corporation Comm'n
937 P.2d 1 (Supreme Court of Kansas, 1997)
Carrington v. Unseld
923 P.2d 1052 (Court of Appeals of Kansas, 1996)
Stewart v. NationaLease of Kansas City, Inc.
920 F. Supp. 1188 (D. Kansas, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
901 P.2d 20, 21 Kan. App. 2d 435, 1995 Kan. App. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grindsted-products-inc-v-kansas-city-power-light-co-kanctapp-1995.