Jessie F. McMaster, Jr. v. Public Utility Commission of Texas

CourtCourt of Appeals of Texas
DecidedAugust 31, 2012
Docket03-11-00571-CV
StatusPublished

This text of Jessie F. McMaster, Jr. v. Public Utility Commission of Texas (Jessie F. McMaster, Jr. v. Public Utility Commission of Texas) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jessie F. McMaster, Jr. v. Public Utility Commission of Texas, (Tex. Ct. App. 2012).

Opinion

TEXAS COURT OF APPEALS, THIRD DISTRICT, AT AUSTIN




NO. 03-11-00571-CV

Jessie F. McMaster, Jr., Appellant



v.



Public Utility Commission of Texas, Appellee



FROM THE DISTRICT COURT OF TRAVIS COUNTY, 250TH JUDICIAL DISTRICT

NO. D-1-GN-11-000379, HONORABLE AMY CLARK MEACHUM, JUDGE PRESIDING

M E M O R A N D U M O P I N I O N



This interlocutory appeal arises from a suit for judicial review of the Public Utility Commission's final order granting Lone Star Transmission, LLC permission to build an electric transmission line in north-central Texas. Appellant Jessie F. McMaster, Jr. challenges the district court's grant of the Commission's and Lone Star's pleas to the jurisdiction and resulting dismissal of his claims. Because the district court lacked jurisdiction over McMaster's claims, we will affirm the district court's order.



FACTUAL AND PROCEDURAL BACKGROUND

Lone Star, which constructs, operates, and maintains electric transmission facilities in Texas, is an electric utility subject to the Public Utility Regulatory Act. See Tex. Util. Code Ann. § 31.002(6) (West Supp. 2011) (defining "electric utility" as person who "owns or operates for compensation in this state equipment or facilities to produce, generate, transmit, distribute, sell, or furnish electricity in this state"); see generally id. §§ 11.001-66.016 (West 2007 & West Supp. 2011) (establishing regulatory system for public utilities in Texas) ("PURA"). Under its legislative grant of authority from PURA, the Commission regulates public utilities in Texas, including electric utilities such as Lone Star. See id. § 14.001.

Among many other things, PURA requires electric utilities to obtain a certificate of convenience and necessity (CCN) before installing, operating, or extending a transmission line. See id. § 37.051(a). Generally stated, the procedure for obtaining the CCN begins with the submission of an application to the Commission, includes a contested-case hearing, and ends with the Commission's grant or denial of the CCN. See id. §§ 37.053-.056. During the contested-case hearing, the utility applicant, intervening parties, including potentially affected landowners, and the Commission may present evidence regarding the application. 16 Tex. Admin. Code §§ 22.201-.207 (2012) (Public Util. Comm'n of Tex., Hearings). To approve an application to obtain or amend a CCN, the Commission must find that the proposed CCN is "necessary for the service, accommodation, convenience, or safety of the public." See Tex. Util. Code Ann. § 37.056(a); see also id. § 37.056(c) (setting forth criteria for determination); 16 Tex. Admin. Code. § 25.101 (Public Util. Comm'n of Tex., Certification Criteria) (2012) (same). If the Commission grants the application, it must approve a route for the transmission lines that meets PURA and Commission rules. See 16 Tex. Admin. Code § 25.101(b)(3)(B). For certain CCN applications, including Lone Star's application here, see infra pp. 3 n.1, 5, if the Commission does not issue a final order on the CCN application within 180 days of the application's filing, "the application is approved." See Tex. Util. Code Ann. § 39.203(e).

As part of the Legislature's effort to encourage development and transmission of renewable energy sources, the Commission chose Lone Star in March 2010 to construct three transmission-line segments across parts of north-central Texas to serve the Central Competitive Renewable Energy Zone. (1) See id. §§ 39.203(e), 39.904. In connection with that selection, Lone Star filed an application with the Commission in May 2010 for a CCN to install those three transmission-line segments. One of these segments would cross parts of Bosque County near McMaster's property. To comply with PURA's notice requirements, Lone Star twice published notice of its CCN application in several newspapers and also mailed, via first-class mail, notices to those owners of land "directly affected" by the proposed transmission line route as identified by the tax-roll information supplied by the appropriate counties' tax assessor's office, including that of Bosque County. See 16 Tex. Admin. Code § 22.52(a) (2010) (Public Util. Comm'n, Notice in Licensing Proceedings) (requiring applicant to publish notice in newspaper and to send notices via first-class mail to nearby municipalities and "owners of land, as stated on the current county tax roll(s), who would be directly affected by the [CCN]") amended 36 Tex. Reg. 3178 (2011) (proposed 36 Tex. Reg. 1637). (2) Land is considered "directly affected" under this rule if an easement or other property interest would be obtained over all or any portion of it, or if it contains a habitable structure that would be within 300 feet of the centerline of a transmission project of 230kV or less, or within 500 feet of the centerline of a transmission project greater than 230kV. (3) Id. § 22.52(a)(3). Lone Star initially determined that McMaster's property fell within these parameters, thus entitling McMaster to notice under this provision. However, the notice was incorrectly mailed to the neighboring property owner, who testified in deposition that she told McMaster about Lone Star's application and advised McMaster to investigate the matter. (4) McMaster subsequently attended at least two property-owners' meetings where the CCN application, the proposed transmission-line route, the property owners' concerns, and the Commission's application procedure were discussed. Further, the undisputed evidence presented during the contested-case hearing established that, contrary to Lone Star's initial determination, McMaster's land did not fall under the Commission rule's definition of "land directly affected"--i.e., the transmission line would not cross McMaster's property and McMaster's land did not have a habitable structure within 500 feet of the centerline of any proposed route. See id. (identifying property owners entitled to notice of CCN application). (5)

The Commission assigned the hearing on the application to the State Office of Administrative Hearings. The two administrative law judges (ALJs) received evidence and heard testimony over the course of a seven-day hearing, then issued a proposal for decision on October 22, 2010, recommending that the Commission approve Lone Star's CCN application. The Commission heard public comment on the CCN application at its open meeting on November 10, 2010, and then issued its final order adopting the ALJs' proposal for decision on November 17, 2010, or approximately four days before its statutory deadline to issue its order in this matter. See Tex. Util. Code Ann. § 39.203(e) (providing that, for CREZ-related applications, if Commission does not issue order by 181st day, application is approved).

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Jessie F. McMaster, Jr. v. Public Utility Commission of Texas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jessie-f-mcmaster-jr-v-public-utility-commission-o-texapp-2012.