Oncor Electric Delivery Company LLC v. City of Richardson, Texas

537 S.W.3d 133
CourtCourt of Appeals of Texas
DecidedAugust 11, 2015
Docket05-14-00843-CV
StatusPublished
Cited by1 cases

This text of 537 S.W.3d 133 (Oncor Electric Delivery Company LLC v. City of Richardson, 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
Oncor Electric Delivery Company LLC v. City of Richardson, Texas, 537 S.W.3d 133 (Tex. Ct. App. 2015).

Opinion

MEMORANDUM OPINION

Opinion by

Justice Bridges

The issue presented in this appeal is whether appellant Oncor Electric Delivery Company LLC (“Oncor”) or the City of Richardson (the “City”) is responsible for the costs of relocating Oncor’s utility poles, wires, and related equipment in the City’s public alleys so the City can widen the alleys. Both parties filed motions for summary judgment. The trial court granted the City’s motion, denied Oncor’s motion, and entered final judgment in favor of the City.

On appeal, Oncor’ argues the trial court erred because. (1) the Franchise, does not require Oncor to pay relocation costs; (2) no City ordinance requires Oncor to pay the costs; (3) the common law-does not require Oncor to pay the costs; and (4) no statute requires Oncor to pay the costs. We reverse the trial court’s judgment and render judgment in favor of Oncor.

Background

The City is considered a home-rule city, which means it has statutory authority to grant franchises to public utilities for use of the public rights-of-way subject to conditions of use of the public rights-of-way set by the City in the franchise. In August of 2006, the Richardson City Council approved Ordinance No, 3559 (the “Fran- *135 ehise Contract Ordinance”) granting On-cor’s predecessor, TXU Electric Delivery Company (“TXU”), and its successors and assigns the right to use the City’s public rights-of-way for transmission and distribution of electric power subject to certain restrictions, limitations, terms, and conditions set forth in the Franchise Contract Ordinance. TXU provided written acceptance of the Franchise Contract Ordinance on September 12, 2006. The Franchise Contract Ordinance, along with TXU’s acceptance, became the Franchise Contract (the “Franchise”).

Section 8 of the Franchise, titled “CONSTRUCTION IN THE PUBLIC RIGHTS-OF-WAY,” provides in relevant part:

Chapter 20, Article V of the City Code of Ordinances, as now-existing or as the same may be adopted, supplemented, amended or revised (“Construction in the Public Rights-of-Way Ordinance”), 1 is incorporated by reference. The Electric Delivery Utility shall comply with all ordinances, rules and regulations of the City to the extent that such City ordinances, rules and regulations do not conflict with the provisions of this Franchise. This franchise agreement shall in no way affect or impair the rights, obligations or remedies of the parties under the Texas Public Utility Regulatory Act, or other state or federal law...,
The City reserves the right for any reason whatsoever to use, to change the grade of, construct, install, repair, alter, maintain, relocate, modify, close, reduce, or widen (collectively “to change”) any Public Rights-of-Way, within the present or future limits of the City. At the City’s request the Electric Delivery Utility shall relocate or remove Facilities in order to accommodate such change of any Public Rights-of-Way.

Chapter 20, Article V of the City Code of Ordinances defines public rights-of-way to include “alley.” It further provides, “If the City gives written notice, a person shall, at its own expense, temporarily or permanently, remove, relocate, change, or alter the position of person’s facilities that are in the public rights-of-way within 120 days ...” (Emphasis added.)

In February of 2010, Richardson voters approved reconstruction and widening of thirty-two alleys. The project, considered a change to the public rights-of-way, required relocation of approximately 150 electric utility poles and related electric utility facilities. The City provided notice to Oncor, as required under the ROW Ordinance; however, Oncor refused to pay for the relocation. The City notified On-cor of its breach of the Franchise in a letter dated February 2, 2011. Oncor responded by tetter dated February 16, 2011 and refused to relocate the facilities at its own expense.

In the interim, Oncor filed a rate case with the PUC seeking changes in its rates, operations, and services as set forth in its tariff. In June 2011, the parties reached a settlement and enacted Ordinance No. 3828, which adopted the Tariff.

The City filed suit against Oncor for breaching the Franchise and sought in-junctive relief. 2 Relying on common law, statutory law, and the Franchise, the City argued Oncor was obligated to pay the relocation costs of moving its electric utility poles and related facilities to widen the alleys. The City further argued Oncor’s *136 non-compliance was “inconsistent with On-cor’s decades old, past custom and practice of complying with the Franchise Contract by relocating its facilities located in alleys at its cost for City projects.” The City cited thirty-four specific instances in which Oncor had relocated its facilities, at its own expense, between 2006 and 2010.

Oncor answered, filed a breach of contract counterclaim, and sought a declaratory judgment. It alleged the City and On-cor are parties to the Tariff, which the City adopted as part of Ordinance No. 3823 and approved on June 13, 2011. The City argued the Tariff controls in the event of a conflict between any of its terms and those in any ordinance, such as the Franchise. Section 5.7.8 of the Tariff, titled “REMOVAL AND RELOCATION OF COMPANY’S FACILITIES AND METERS,” states. “Retail Customer, pr the entity requesting such removal or relocation, shall pay to Company the total cost of removing or relocating such Delivery System facilities in accordance with Chapter 6.” Thus, Oncor asserted the City breached the Tariff by refusing to pay for the relocation of the electric utility poles and related facilities.

Oncor filed a traditional motion for summary judgment and an amended motion for summary judgment. Oncor argued, as it does on appeal, that neither the Franchise, any City ordinance, nor statutory or common law required it to pay the relocation costs of its electric utility poles or related facilities for the City to widen its alleys. The City filed a traditional motion for summary judgment arguing the Franchise, the City’s ROW Ordinance, and statutory and common law all require Oncor to pay the relocation costs. Both parties’ filed responses. Oncor attached to its original motion for summary judgment the affidavit of Howard V. Fisher, the senior counsel-regulatory for Oncor. However, when Oncor filed its amended motion for summary judgment, it failed to attach or incorporate his affidavit even though On-cor relied on it for support. The City objected to Fisher’s affidavit for various reasons, including failing to attach or incorporate it by reference in an amended motion for summary judgment.

A summary judgment hearing was held on February 19, 2014. After the hearing, the parties continued to file various post-hearing briefs, responses, evidence, and objections. On June 3, 2014, the trial court granted the City’s motion for summary judgment and denied Oncor’s motion for summary judgment.

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Related

City of Richardson v. Oncor Elec. Delivery Co.
539 S.W.3d 252 (Texas Supreme Court, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
537 S.W.3d 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oncor-electric-delivery-company-llc-v-city-of-richardson-texas-texapp-2015.