Peco Energy Co. v. Pennsylvania Public Utility Commission

756 A.2d 156, 2000 Pa. Commw. LEXIS 414
CourtCommonwealth Court of Pennsylvania
DecidedJuly 19, 2000
StatusPublished
Cited by1 cases

This text of 756 A.2d 156 (Peco Energy Co. v. Pennsylvania Public Utility Commission) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peco Energy Co. v. Pennsylvania Public Utility Commission, 756 A.2d 156, 2000 Pa. Commw. LEXIS 414 (Pa. Ct. App. 2000).

Opinion

KELLEY, Judge.

PECO Energy Company (PECO) petitions for review of an order of the Pennsylvania Public Utility Commission (Commission) which granted the exceptions filed by the Pennsylvania Department of Transportation (DOT) to the recommended decision of an Administrative Law Judge (ALJ). We vacate and remand.

On September 3, 1997, DOT filed an application with the Commission to reconstruct State Route 2001, designated as Christopher Columbus Boulevard/Delaware Avenue (Delaware Avenue), by removal of old railroad tracks, base repairs, drainage improvements and resurfacing. The application sought abolition and removal of twenty-three (23) railroad crossings owned by Consolidated Rail Corporation (Conrail). The Commission, by letter dated November 20, 1997, approved DOT’s application and directed DOT to prepare and submit to the Commission for approval, final construction drawings for the reconstruction and resurfacing of Delaware Avenue. Thereafter, hearings were held before an ALJ after which the ALJ made the following findings of fact adopted by the Commission.

As a result of its application to reconstruct and resurface Delaware Avenue, DOT entered into stipulations with various municipal public utilities to share the costs of the project and relocating the municipal public utilities facilities. DOT did not enter into any stipulations or agreements with PECO or Bell Atlantic-Pennsylvania, Inc. (Bell) to share the costs of relocating PECO’s and Bell’s facilities along Delaware Avenue. Consequently, PECO and Bell sought reimbursement from DOT for all costs actually incurred in connection with the removal and replacement of PECO’s and Bell’s facilities. DOT refused-to agree to reimburse PECO and Bell for the aforementioned costs. DOT will receive federal and state funding for the Delaware Avenue project.

Based on: (1) the benefit received by the ratepayers of the particular utility; (2) the availability of state and/or federal funding for a project; (3) the placing of the costs upon the party responsible for the situation; and (4) the equities of a particular situation, the ALJ ordered DOT to pay to PECO and Bell 100% of the actual costs incurred by PECO and Bell in furnishing material and performing work minus the costs of any betterment to their facilities. DOT filed exceptions with the Commission raising objections to the foregoing portion of the ALJ’s recommended decision and order.

The Commission granted DOT’s exceptions by order entered April 5, 1999. The Commission concluded that the ALJ’s recommended cost allocation with respect to PECO and Bell was not just and reasonable based on the following considerations. First, the Commission determined that both Bell and PECO have received, and will continue to receive, substantial benefits from the location of their facilities in a public right-of-way, rather than being faced with- the necessity of acquiring a [158]*158private right-of-way for their respective facilities.

Second, the Commission determined that DOT may utilize federal funding to defray the cost of utility relocation only when DOT is obligated to do so under state law. The Commission believed that DOT should not be penalized: (1) for cost sharing with municipal non-carrier public utilities, as it is permitted to do by state law; and (2) for complying with the law and not volunteering to reimburse Bell and PECO with state funds or seeking federal funding to reimburse Bell and PECO. In short, the Commission determined that DOT only has legal authority to cost share with municipal, non-carrier public utilities.

Third, the Commission found that the IV ct that DOT was the moving force or “cost causer” behind the project was not of overriding weight in the determination of the allocation of reimbursement costs. The Commission believed that DOT should not be penalized for conducting a highway safety improvement project, especially in light of the Commission’s paramount goal of preventing accidents and promoting public safety. Additionally, the Commission stated that it could not expect DOT to wait until the various utilities’ facilities are at the extreme end of their useful lives before DOT can conduct major roadway reconstruction and that safety and design improvements must be completed when necessary.

Fourth, the Commission determined that consistency was an important factor in allocating 100% of the costs to Bell and PECO. The Commission pointed out that in a prior proceeding wherein DOT sought approval to rehabilitate the Smithfield Street Bridge in the City of Pittsburgh, the utilities involved therein, Bell and Du-quesne Light Company, were each directed to bear 100% of the costs and expenses incurred in the relocation of their facilities. The Commission pointed out that in that decision, the ALJ determined that the ratepayers of Bell and Duquesne Light Company, as a class, did not benefit from the subject project and that “but for” the project the utilities would not have incurred the costs at issue did not support reimbursement when set against the taxpayers of Allegheny County, as a class, bearing the costs incurred by Bell and Duquesne Light Company to relocate their respective facilities. The Commission concluded that the same logic applied in the present matter and stated that “[tjhe taxpayers of the Commonwealth should not be forced to bear Bell and PECO’s relocation costs when both Bell and PECO have received and continue to receive substantial benefits from the location of their facilities in public right-of-ways.” Commission’s Opinion and Order at 10.

Thus, the Commission ordered, inter alia, that PECO and Bell, at their sole cost and expense, furnish all material and do all work necessary to alter and/or relocate and/or remove their facilities from the areas of the crossings in such a manner as will not interfere with the abolition and construction project. On April 20, 1999, PECO requested reconsideration of the Commission’s April 5, 1999 order. By order adopted April 29, 1999, the Commission expressly granted reconsideration of its April 5, 1999. By order adopted June 24, 1999, the Commission determined that the issues raised by PECO in support of its request that the Commission reconsider its April 5, 1999 order were not new and novel arguments that would persuade the Commission to reverse or amend its April 5, 1999 order. This appeal by PECO followed.1

PECO raises the following issues in this appeal:

1. Whether the Commission committed an error of law in effectively abrogating its exclusive jurisdiction under Sections 2702 and 2704 of the Public Utility Code, 66 Pa.C.S. § 2702; 2704, by accepting DOT’s policy against reimbursing a public utility for costs incurred to replace or [159]*159relocate facilities located in public rights-of-way.
2. Whether the Commission’s determination concerning the availability of funds was erroneous and not supported by the evidence.
3. Whether there was sufficient evidence of record to support the Commission’s order.
4. Whether the Commission’s order is erroneous, arbitrary and capricious because it fails to follow, distinguish or overrule prior Commission adjudications.

As a preliminary matter, the Commission alleges in its brief that PECO has only petitioned for review of the Commission’s June 24, 1999 order in its petition filed with this Court.

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756 A.2d 156, 2000 Pa. Commw. LEXIS 414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peco-energy-co-v-pennsylvania-public-utility-commission-pacommwct-2000.