Louisiana Power & Light Co. v. Louisiana Public Service Commission

353 So. 2d 718, 1977 La. LEXIS 6788
CourtSupreme Court of Louisiana
DecidedDecember 19, 1977
DocketNo. 60257
StatusPublished
Cited by4 cases

This text of 353 So. 2d 718 (Louisiana Power & Light Co. v. Louisiana Public Service Commission) 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
Louisiana Power & Light Co. v. Louisiana Public Service Commission, 353 So. 2d 718, 1977 La. LEXIS 6788 (La. 1977).

Opinion

SUMMERS, Justice.

In a letter dated March 21, 1975 Claiborne Electric Cooperative, Inc., complained to the Louisiana Public Service Commission alleging that Louisiana Power and Light Company had made or was in the process of making electrical line extensions north of the city of Minden which were clear violations of the Commission’s General Order of March 12, 1974 relating to the duplication of electrical facilities. Claiborne also charged that Louisiana Power had extended its lines to provide service to a customer within 300 feet of Claiborne’s existing lines contrary to proscriptions contained in Section 123 of Title 45 of the Revised Statutes. Furthermore, according to the complaint, Louisiana Power had extended its lines and proposed to extend others into areas in which Claiborne’s existing lines could provide service economically and efficiently. The line extensions and those proposed into the area by Louisiana Power were said to be needless duplications of electrical facilities. Louisiana Power should not, therefore, be permitted to provide service to this area, and Claiborne requested that Louisiana Power’s lines be removed. Upon being apprised of this complaint Louisiana Power discontinued service to the customer within 300 feet of Claiborne’s existing lines.

Nevertheless, on June 2, 1975 Claiborne filed a petition before the Commission alleging that Louisiana Power had constructed lines in the Garrison Addition of Minden, Louisiana, and had cleared rights of way for future lines in that addition. Plats made part of the petition delineated the location of the recently constructed and proposed lines of Louisiana Power and the existing lines of Claiborne.

Historically, according to the petition, the area involved was served by Claiborne and their lines had existed for a number of years prior to Louisiana Power’s extensions. Claiborne alleged that it could economically serve the additional load resulting from development of the Garrison Addition without delay.

By its extensions and proposed extensions into the Garrison Addition Louisiana Power was alleged to be duplicating service in the area in violation of the Commission’s General Order of March 12, 1974 and the spirit and letter of Section 123 of Title 45 of the Revised Statutes relative to extending service to a point of connection which is within 300 feet of an electric line of another electric public utility.

Claiborne prayed that Louisiana Power be permanently restricted and enjoined from duplicating the electric lines and facilities of Claiborne in the Garrison Addition.

Louisiana Power answered, denying generally Claiborne’s allegations and alleged that it has for many years served customers in the area and has owned electric facilities in the area since 1948. Louisiana Power further answered that it had complied with the provisions of Section 123 of Title 45 of the Revised Statutes and that the customers who had applied to it for service in the [720]*720area could be served from its existing facilities or extensions thereof in an economical and justifiable manner.

After a hearing the Commission rendered its order finding

“that the purpose of its General Order dated March 12, 1974, entitled ‘Duplication of Electric Service’ was to effect economies in the service of electricity and thus keep rates within reasonable bounds. Uneconomic and wasteful practices are prohibited. The extension of facilities by one electric utility to serve customers readily accessible by facilities of an electric public utility already providing service in the immediate area is not in the public interest and such practices ultimately lead to wasteful competition and unwise expenditures. The facilities constructed by Louisiana Power and Light Company clearly indicate a wasteful practice since the existing facilities of Claiborne can serve the prospective customers at lesser cost and by simple extensions of the existing facilities.”

On these findings Louisiana Power was ordered to dismantle the facilities constructed to serve Garrison Addition and that electric service to this subdivision be provided by Claiborne.

After its application for rehearing was denied, Louisiana Power petitioned the Nineteenth Judicial District Court under appropriate authority for an appeal from, and judicial review of, the Commission’s order, praying that its execution be enjoined pending final determination of the appeal. La.Const, art. IV, § 21(E); La.Rev. Stat. 45:1191-95.

The Commission answered, Claiborne intervened and the parties stipulated that the efficacy of the Commission’s order would be stayed until final judgment on the appeal. A pretrial conference resulted in a stipulation that the pleadings established that Louisiana Power had not served any customers in the Garrison Addition whose point of connection was within 300 feet of any line of the electric co-op.

On these stipulations and the record made before the Commission the district court rendered judgment in favor of the Commission, affirming its order, and dismissing Louisiana Power’s demands at its cost.

In its appeal to this Court Louisiana Power contends that the Commission’s decision is unsupported by its General Order of March 12,1974, “In re: Duplication of Electric Services”, and the Commission’s decision cannot be supported by and is contrary to Section 123 of Title 45 of the Revised Statutes and this Court’s holding in South La. Electric Coop. Ass’n v. La. Public Service Com’n, 309 So.2d 287 (La.1975).

I.

The Commission’s General Order of March 12, 1974, which Louisiana Power asserts does not support the decision in this case, purports to require the most economical and least wasteful utilization and development of electric public utility facilities. The order was promulgated to effect economies in the service of electricity, maintain rates within reasonable bounds, and prohibit uneconomic and wasteful practices. Paralleling and duplication of existing transmission or distribution lines or the extension 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 is not in the public interest according to the order. Such practices ultimately lead to wasteful competition and unwise expenditures and investments burdening the rate payer.

The order recognizes that in some areas there is no clear line of demarcation between the service area of public utilities, and finds that the service area of an electric public utility is that area which, as a result of the existence of transmission and distribution lines, is readily accessible by economically feasible extensions from such existing facilities, including customers already receiving service.

Insofar as pertinent to the case at bar, and based on the foregoing findings, the order mandates

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Related

La. Power & Light Co. v. LA. PUBLIC SERVICE COMM'N
609 So. 2d 797 (Supreme Court of Louisiana, 1992)
Wagner v. Central Louisiana Electric Co.
99 F.R.D. 279 (E.D. Louisiana, 1983)
Gulf States Utilities Co. v. Louisiana Public Service Commission
381 So. 2d 432 (Supreme Court of Louisiana, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
353 So. 2d 718, 1977 La. LEXIS 6788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-power-light-co-v-louisiana-public-service-commission-la-1977.