Pennsylvania Rural Electric Ass'n v. Pennsylvania Public Utility Commisson

473 A.2d 1134, 81 Pa. Commw. 466, 1984 Pa. Commw. LEXIS 1333
CourtCommonwealth Court of Pennsylvania
DecidedApril 10, 1984
DocketAppeal, No. 1875 C.D. 1982
StatusPublished
Cited by5 cases

This text of 473 A.2d 1134 (Pennsylvania Rural Electric Ass'n v. Pennsylvania Public Utility Commisson) 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
Pennsylvania Rural Electric Ass'n v. Pennsylvania Public Utility Commisson, 473 A.2d 1134, 81 Pa. Commw. 466, 1984 Pa. Commw. LEXIS 1333 (Pa. Ct. App. 1984).

Opinion

Opinion by

Judge Barry,

This appeal results from an order of respondent, Pennsylvania Public Utility Commission (PUC), which held that intervenor, Pennsylvania Electric Company (Penelec) was the proper retail electrical supplier for an entire enclosed shopping mall (Cranberry Mall) located in Cranberry Township, Venango County. The present dispute involves an interpretation of various provisions of the Retail Electric Supplier Unincorporated Area Certified Territory Act (Act), Act of July 30, 1975, P.L. 113, 15 P.S. §3277 (Supp. 1983-84), a portion of which provides:

This act shall apply only to the establishment of boundaries of certified territory between retail electrical suppliers where one such supplier is an association or cooperative corporation and the other such supplier is subject to the jurisdiction of the Public Utility Commission for rates, terms and conditions for electrical service.

15 P.S. §3277.1 (Supp. 1983-84).

Penelec is a retail electrical supplier subject to the jurisdiction of the PUC. Petitioner Pennsylvania Rural Electric Association (PREA) is a non-profit corporation which represents thirteen rural electric [468]*468cooperatives of the Commonwealth, one of which is petitioner, Central Electric Cooperative, Inc. (Central). Central provides retail electric service in Venango County, as does Penelec.

.Construction of the Cranberry Mall commenced in the summer of 1980. When completed, the mall will be approximately 535,000 square feet in size, with three large department stores, numerous smaller shops and parking areas surrounding the entire structure. The entire complex is owned by intervenor, Cranberry Mall Company. The structure is under a single roof and all tenants have inside access to the indoor common areas of the mall.

As both Penelec and Central provide retail electric service in the area of ,the mall, a dispute arose between the two concerning which was the appropriate retail electric supplier. 'Specifically, both contended that they .should supply such service to Hill’s Department Store (Hill’s), which was located in the westernmost portion of the Mall. While all of the other tenants ■have electricity costs built into their montly rent, Hill’s has its own meters to monitor electricity use.

To resolve such jurisdictional disputes, Section 4 of the Act provides:

(a) Except as otherwise provided in this section, no retail electric supplier shall furnish retail electric service in the certified territory of another retail electric supplier.
(b) Except as otherwise provided in this section, the boundaries of the certified territory of each retail electric supplier in any unincorporated area are hereby set as a line or lines substantially equidistant between its existing distribution lines ¡and the nearest existing distribution lines of any .other retail .electric supplier in every direction, with the result that [469]*469there is hereby certified to each retail electric supplier such unincorporated area which in its entirety is located substantially in closer proximity to one of its existing distribution lines than the nearest existing distribution line of any other retail electric supplier.
(c) On or before one year after the effective date of this act, or, when requested in writing by a retail electric supplier and for good cause shown, such further time as the commission may fix by order, each retail electric supplier .shall file with the commission a map or maps showing all of its existing distribution lines as of the effective date of this act. The commission shall prepare or order to be prepared and filed in the manner and form prescribed by the commission within six months thereafter a map or maps of uniform scale to show, accurately and clearly, the boundaries of the certified territory of each retail electric supplier as established under subsection (b) and shall issue such map or maps of certified territory to each retail electric supplier.
(d) In each unincorporated area, where the commission shall determine that the existing distribution lines of two or more retail electric suppliers are so intertwined or located that subsection (b) cannot reasonably be applied, the commission shall, after hearing, certify the service territory or territories for the retail electric suppliers so as to promote the legislative policy stated in section 3.

15 P.S. §3280 (Supp. 1983-84) (footnote omitted).

Furthermore, Section 5 of the ‘Act provides:

(b) Except as provided in subsections (c) and (e) any new electric-consuming facility [470]*470located in an unincorporated area which has not as yet been included in a map issued by the commission, pursuant to section 4(c), or certified, pursuant to section 4(d), shall be furnished retail electric service by the retail electric supplier which has an existing* distribution line in closer proximity to such electric-consuming facility than is the nearest existing distribution line of any other retail electric supplier. Any disputes under this subsection (b) shall be resolved by the commission.

15 P.S. §3281 (footnotes omitted).

At the time the present dispute arose, the PTTC had neither issued maps delineating a supplier’s territory under Section 4(c) nor certified such territory pursuant to Section 4(d). If such a map had been drawn according to the method called for in Section 4(b), the boundary line would divide the are'a occupied by the mall in such a manner that Hill’s would be within Central’s territory while the remaining eighty-five per cent of the mall would be within the territory of Penelec. Since the PHC had taken no such action, the Administrative Law Judge (ALJ) relied upon Section 5(b) of the Act to determine whether Penelec or Central should supply electricity to Hill’s.

In applying Section 5(h), the ALJ was required to apply the Act’s definition of “electric-consuming facilities”, i.e., “everything that utilizes electric energy from a central station source”, 15 P.S. §3278 (Supp. 1983-84) to the present facts. Central argued that Hill’s was a separate “electric-consuming facility” while Penelec countered that the entire mall complex constituted a single “electric-consuming facility”. Central’s nearest existing distribution line was, while being* 1305 feet from the center of the mall, 592 feet from Hill’s. On the other hand, Penelec’s [471]*471nearest existing distribution line was 570 feet from the center of the mall and 730 feet from Hill’s.

The ALJ ruled that the entire complex was a single “electric-consuming facility” and, since Penelec’s existing distribution line was closer to the center of the mall than the line of Central, he held that Penelec was the appropriate retail supplier. Following the denial of 'exceptions, «both Central and PKEA appealed to the PUC, which upheld the determination of the ALJ. This appeal followed.

Petitioners argue .that both the Commission and the ALJ erred in interpreting the Act’s definition of “electric-consuming facility” in such a manner to reject their contention that Hill’s ¡was «a separate facility for purposes of the Act. The Commission held that the entire mall should be considered a single “electric-consuming facility” for two reasons. First, the entire mall complex was under a common roof and Hill’s had access points to the common areas of the mall.

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Bluebook (online)
473 A.2d 1134, 81 Pa. Commw. 466, 1984 Pa. Commw. LEXIS 1333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-rural-electric-assn-v-pennsylvania-public-utility-commisson-pacommwct-1984.