La. Power & Light Co. v. La. Public Serv. Com'n.

343 So. 2d 1040, 1977 WL 365341
CourtSupreme Court of Louisiana
DecidedFebruary 28, 1977
Docket58751
StatusPublished
Cited by20 cases

This text of 343 So. 2d 1040 (La. Power & Light Co. v. La. Public Serv. Com'n.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
La. Power & Light Co. v. La. Public Serv. Com'n., 343 So. 2d 1040, 1977 WL 365341 (La. 1977).

Opinion

343 So.2d 1040 (1977)

LOUISIANA POWER & LIGHT COMPANY, Plaintiff-Appellant,
v.
LOUISIANA PUBLIC SERVICE COMMISSION et al.,
Defendants-Intervenors-Appellees.

No. 58751.

Supreme Court of Louisiana.

February 28, 1977.
Rehearing Denied April 7, 1977.

*1041 Andrew P. Carter, Eugene G. Taggart, William T. Tete, Monroe & Lemann, New Orleans, for plaintiff-appellant.

Marshall B. Brinkley, Baton Rouge, for defendants-appellees.

E. Rudolph McIntyre, Winnsboro, John Schwab, Baton Rouge, for intervenor-appellee.

TATE, Justice.

By these proceedings, the plaintiff utility ("Louisiana Power") seeks judicial review of an order of the defendant commission. The order resulted from a complaint filed in the commission by another utility ("Northeast"), intervenor in these judicial proceedings. Northeast there claimed that, in violation of a commission general order, Louisiana Power was constructing duplicative facilities to serve a customer within a geographic area now served by Northeast.

Louisiana Power appealed to the district court for judicial review of the commission adjudication of this dispute in favor of *1042 Northeast, which ordered that Northeast's lines provide service in the area. The district court upheld the order, following which Louisiana Power now appeals directly to this court. See La.Constitution of 1974, Article 4, Section 21(E).

Upon its appeal, Louisiana Power attacks: (1) the commission's conclusion that Louisiana Power's facility was duplicative of the service furnished by Northeast to the area; (2) the commission's failure to conclude that service to be furnished by Louisiana Power would be more economical and reliable than that to be available from Northeast; (3) and, in the alternative, the validity of agency's general order which the commission held was violated by Louisiana Power's duplicative facility.

I.

Before discussing the factual context of this litigation, we deem it appropriate to discuss Louisiana Power's contention claiming invalidity of the commission's general order held to be violated by it.

The general order is entitled "In re: Duplication of Electric Service." The full text of the order is set forth at Appendix 1 below.

The stated purpose of the general order is to prohibit uneconomic and wasteful practices in the service of electricity, in order to maintain reasonable rates. The commission determined that "wasteful competitive and unwise expenditures and investments which become a burden upon the rate payers" result from "the paralleling and duplication of existing transmission or distribution lines. . . or the extensions of either by electric public utilities to serve customers readily accessible to like facilities of an electric public utility already providing service in the immediate area."

The commission therefore ordered "That no extension of electric transmission or distribution lines shall be made by an electric public utility that will duplicate the transmission and distribution lines . . . of another like utility, nor shall extensions be made to serve customers that could be served from such electric public facilities already in existence in an economic and justifiable manner."

At the time the general order was issued, Louisiana Power did not attack its validity, although under the rules of the commission a procedure was available for it to do so for a period before and following issuance of the order. Further, as the commission points out, Louisiana Power thereafter has sought relief before the commission and the courts on the basis of the validity of this order. See, e. g., Louisiana Power & Light Co. v. La. Pub. Serv. Com'n., 324 So.2d 427, 429 (La.1975).

The commission's brief suggests that the validity of the general order upon which the administrative adjudication is based is not properly before us for judicial review: It was not attacked in the administrative proceedings prior to the suit in district court for judicial review of the agency adjudication. Nevertheless, we pretermit decision of this preclusion issue, because the issue is not squarely raised by the pleadings in the district court, and since the record before us does not indicate clearly that the plaintiff could have raised the invalidity of the rule-making (general) order in the adjudicatory proceedings for which judicial review is now sought.[1]

*1043 The general order was issued upon the constitutional authority of the commission to regulate public utilities and to adopt reasonable rules and regulations necessary for the discharge of this duty. La.Constitution of 1974, Article 4, Section 21(B).[2]

Louisiana Power attacks the validity of the order upon three principal grounds:

(1) It first attacks the validity of the general order as attempting to grant a franchise to utilities in violation of Article 12, Section 14, La.Constitution of 1974 (which prohibits exclusive and perpetual franchises), and in the absence of statutory authority for the commission to grant any franchise.

The general order, on its face, does not purport to do so (see Appendix 1 below). Within the regulatory scope of the commission's authority, the order merely regulates the construction of duplicating electric facilities, having regard to the effect of wasteful utility competition and expenditure upon the rates which must be charged to pay for them. See Louisiana Gas Service v. Polaris Corporation, 254 La. 297, 223 So.2d 810 (1969).

(2) The plaintiff utility next suggests that the exercise of the commission's rule-making power in this regard violates its right to own and use private property, Article 1, Section 4, La.Constitution of 1974.

However, this constitutional provision also notes: "This right [of private ownership of property] is subject to reasonable statutory restriction and the reasonable exercise of the police power." There is no showing whatsoever that the commission's general order inhibiting duplicative electricservice facilities (the cost of which will ultimately be borne by rate payers) is an unreasonable exercise of its constitutional and legislative regulatory powers over public utilities and their rates.

(3) Finally, Louisiana Power argues that the commission's general order constitutes an invasion of the power of the legislature. The basis for this argument is that the commission's order prohibits duplicative utility construction to an area immediately served by the facilities of another utility; whereas by La.R.S. 45:123 (1970) the legislature prohibited construction of duplicative facilities only to points located within 300 feet of another utility's electric line.

As we previously noted, the broad regulatory power of the commission includes within its scope the issuance of a general order inhibiting duplicative utility facilities, such as the present. The cited legislative enactment, though more limited in application, is not in conflict with the general order of the commission, which is likewise directed against duplicating utility facilities.

We are not impressed by this contention of the plaintiff. We are cited to no authority that, because the legislature addresses itself to a part of a problem within the constitutional authority of the commission to regulate, the commission is deprived of its constitutional power to issue regulations concerning broader aspects of the issue with which the legislature concerned itself only in part.[3]

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

Related

Voicestream Gsm I v. Public Service Com'n
943 So. 2d 349 (Supreme Court of Louisiana, 2006)
Opinion Number
Louisiana Attorney General Reports, 2006
Capital Utilities Corp. v. Louisiana Public Service Commission
708 So. 2d 368 (Supreme Court of Louisiana, 1998)
Plantation v. La. Public Service Com'n
685 So. 2d 107 (Supreme Court of Louisiana, 1997)
Application of Hawaiian Electric Co., Inc.
918 P.2d 561 (Hawaii Supreme Court, 1996)
Wst Elec. Coop., Inc. v. La. Public Service Com'n
671 So. 2d 908 (Supreme Court of Louisiana, 1996)
La. Power & Light Co. v. LA. PUBLIC SERVICE COMM'N
609 So. 2d 797 (Supreme Court of Louisiana, 1992)
Application of Kaanapali Water Corp.
678 P.2d 584 (Hawaii Intermediate Court of Appeals, 1984)
Dixie Elec. Mem. v. La Public Service Com'n
441 So. 2d 1208 (Supreme Court of Louisiana, 1983)
La. Power & Light Co. v. LA. PUBLIC SERVICE COMMISSION
392 So. 2d 658 (Supreme Court of Louisiana, 1980)
Claiborne Elec. Coop., Inc. v. LA. PUBLIC SERVICE COM'N
388 So. 2d 792 (Supreme Court of Louisiana, 1980)
Application of Hawaii Elec. Light Co., Inc.
594 P.2d 612 (Hawaii Supreme Court, 1979)
Cent. La. Elec. v. La. Public Service Com'n
370 So. 2d 497 (Supreme Court of Louisiana, 1979)
Central Louisiana Electric Co. v. Louisiana Public Service Commission
370 So. 2d 497 (Supreme Court of Louisiana, 1979)
La. Power & Light v. La. Public Service Com'n
358 So. 2d 623 (Supreme Court of Louisiana, 1978)
Louisiana Power & Light Co. v. Louisiana Public Service Commission
353 So. 2d 718 (Supreme Court of Louisiana, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
343 So. 2d 1040, 1977 WL 365341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-power-light-co-v-la-public-serv-comn-la-1977.