Northeast Neb. Pub. Power Dist. v. Nebraska Pub. Power Dist.

24 Neb. Ct. App. 837
CourtNebraska Court of Appeals
DecidedJune 27, 2017
DocketA-16-309
StatusPublished
Cited by1 cases

This text of 24 Neb. Ct. App. 837 (Northeast Neb. Pub. Power Dist. v. Nebraska Pub. Power Dist.) is published on Counsel Stack Legal Research, covering Nebraska Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Northeast Neb. Pub. Power Dist. v. Nebraska Pub. Power Dist., 24 Neb. Ct. App. 837 (Neb. Ct. App. 2017).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 07/03/2017 09:10 AM CDT

- 837 - Nebraska Court of A ppeals A dvance Sheets 24 Nebraska A ppellate R eports NORTHEAST NEB. PUB. POWER DIST. v. NEBRASKA PUB. POWER DIST. Cite as 24 Neb. App. 837

Northeast Nebraska Public Power District, appellee and cross-appellant, v. Nebraska Public Power District, appellant and cross-appellee. ___ N.W.2d ___

Filed June 27, 2017. No. A-16-309.

1. Contracts: Appeal and Error. The construction of a contract is a ques- tion of law, and is reviewed de novo. 2. Summary Judgment: Appeal and Error. An appellate court will affirm a lower court’s granting of summary judgment if the pleadings and admitted evidence show that there is no genuine issue as to any material facts or as to the ultimate inferences that may be drawn from the facts and that the moving party is entitled to judgment as a matter of law. 3. ____: ____. In reviewing a summary judgment, an appellate court views the evidence in the light most favorable to the party against whom the judgment was granted, and gives that party the benefit of all reasonable inferences deducible from the evidence. 4. Declaratory Judgments. A declaratory judgment action is ripe for judi- cial determination if the issue presented is fit for judicial determination and would result in significant harm if review were delayed. 5. Courts: Judgments: Damages. A court may proceed to the merits of a case where the issues presented are largely legal in nature, the issue may be resolved without further factual development, or judicial resolu- tion will largely settle the parties’ dispute; and significant harm applies to both actual damages, pecuniary or otherwise, and also the heightened uncertainty and resulting behavior modification that may result from delayed resolution. 6. Pretrial Procedure: Appeal and Error. On a discovery issue, the dis- trict court’s ruling is reviewed for an abuse of discretion. 7. Contracts. The meaning of a contract and whether a contract is ambig­ uous are questions of law. - 838 - Nebraska Court of A ppeals A dvance Sheets 24 Nebraska A ppellate R eports NORTHEAST NEB. PUB. POWER DIST. v. NEBRASKA PUB. POWER DIST. Cite as 24 Neb. App. 837

8. Contracts: Words and Phrases. A contract is ambiguous when a word, phrase, or provision in the contract has, or is susceptible of, at least two reasonable but conflicting interpretations or meanings. 9. Contracts. If the terms of a contract are clear, a court may not resort to rules of construction and must accord clear terms their plain and ordinary meaning as an ordinary or reasonable person would under- stand them. 10. ____. The fact that the parties suggest opposing meanings of a dis- puted instrument does not compel the conclusion that the instrument is ambiguous. 11. Judgments: Appeal and Error. When reviewing questions of law, an appellate court has an obligation to resolve the questions independently of the conclusion reached by the trial court.

Appeal from the District Court for Wayne County: James G. Kube, Judge. Affirmed. Kile W. Johnson and Corey J. Wasserburger, of Johnson, Flodman, Guenzel & Widger, and John C. McClure, of Nebraska Public Power District, for appellant. Steven D. Davidson and David C. Levy, of Baird Holm, L.L.P., for appellee. Inbody, R iedmann, and A rterburn, Judges. A rterburn, Judge. INTRODUCTION Nebraska Public Power District (NPPD) appeals and Northeast Nebraska Public Power District (Northeast) cross- appeals from an order entered by the district court for Wayne County granting summary judgment in favor of Northeast and denying NPPD’s motion for summary judgment. On appeal, NPPD argues the district court erred in overruling NPPD’s motion to dismiss for lack of subject matter jurisdiction, over- ruling NPPD’s motion to compel, interpreting the relevant contract provisions, failing to find that equitable estoppel did not give rise to a cause of action, and granting summary judgment in favor of Northeast. On cross-appeal, Northeast - 839 - Nebraska Court of A ppeals A dvance Sheets 24 Nebraska A ppellate R eports NORTHEAST NEB. PUB. POWER DIST. v. NEBRASKA PUB. POWER DIST. Cite as 24 Neb. App. 837

preserved its right to relief on its alternative claim alleging promissory estoppel as a matter of law. For the reasons set forth below, we affirm.

BACKGROUND Northeast is a political subdivision of the State of Nebraska and a public power district engaged in the distribution of electricity to approximately 8,500 metered accounts in parts of Pierce, Thurston, Wayne, Dixon, and Dakota Counties. Northeast operates approximately 3,000 miles of electric lines and over 100 miles of high-voltage transmission lines in its service area. Northeast is governed by an elected board of directors. NPPD is a political subdivision of the State of Nebraska and a public power district engaged in the generation and trans- mission of electricity at wholesale to numerous towns, public power districts, and cooperatives across Nebraska. NPPD is Nebraska’s largest wholesale electric utility. Prior to January 1, 2015, Northeast was a member of the Nebraska Electric Generation and Transmission Cooperative, Inc. (NEG&T). NEG&T is a nonprofit cooperative of more than 25 Nebraska public power districts and nonprofit elec- tric membership corporations, all of whom are wholesale customers of NPPD. NEG&T was formed, in part, to pro- vide a single point of negotiation with NPPD on behalf of its members in order to obtain energy through a single con- tract between NEG&T and NPPD. As a member of NEG&T, Northeast satisfied all of its demand and energy requirements under a wholesale power agreement with NEG&T, which, in turn, purchased electricity at wholesale from NPPD. Under Northeast’s contract with NEG&T, Northeast did not have the right to limit or reduce the amounts of demand and energy it was obligated to purchase under the contract. Northeast had to withdraw from NEG&T if Northeast desired to limit and reduce its purchases of demand and energy requirements in order to purchase demand and energy requirements from - 840 - Nebraska Court of A ppeals A dvance Sheets 24 Nebraska A ppellate R eports NORTHEAST NEB. PUB. POWER DIST. v. NEBRASKA PUB. POWER DIST. Cite as 24 Neb. App. 837

another wholesale provider. Upon withdrawing from NEG&T, Northeast was obligated under the wholesale power contract (WPC) to contract with NPPD for the remainder of the term of the WPC. Once contracted with NPPD under the WPC, Northeast could avail itself of the limit and reduction provi- sions contained in the WPC. Northeast engaged an outside consultant to assist with issues regarding its potential transition from NPPD to a new whole- sale electricity provider in 2013. There were 77 wholesale customers bound by the same WPC, either through individual contracts with NPPD or through the NEG&T cooperative con- tract. The WPC was originally implemented with most of those customers on January 1, 2002, for a term of 20 years. The NEG&T member agreement contract stated: Beginning January l, 2008, and thereafter, pursuant to the terms of the Member Agreement, a Member may elect to limit or reduce its purchase of demand and energy from NEG&T; provided, a Member electing to limit or reduce its purchase of demand and energy from NEG&T may only do so upon notice of termination of its Member Agreement. Upon the effective termination date of the Member Agreement, the Member shall enter into an Individual Wholesale Power Contract with NPPD, a copy of which is attached hereto as Exhibit E, for the remain- der of the 20-year term of this Contract, which Individual Wholesale Power Contract shall set forth the terms and conditions governing such limitation or reduction and which Individual Wholesale Power Contract shall be the same contract as is offered to other NPPD wholesale cus- tomers under similar conditions of service.

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Bluebook (online)
24 Neb. Ct. App. 837, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northeast-neb-pub-power-dist-v-nebraska-pub-power-dist-nebctapp-2017.