People ex rel. New York Edison Co. v. Public Service Commission for the First District

191 A.D. 237, 181 N.Y.S. 259, 1920 N.Y. App. Div. LEXIS 4692
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 19, 1920
StatusPublished
Cited by4 cases

This text of 191 A.D. 237 (People ex rel. New York Edison Co. v. Public Service Commission for the First District) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. New York Edison Co. v. Public Service Commission for the First District, 191 A.D. 237, 181 N.Y.S. 259, 1920 N.Y. App. Div. LEXIS 4692 (N.Y. Ct. App. 1920).

Opinion

Smith, J.:

Acker, Merrall & Condit has a grocery store and owns a building which it partly occupies and part of the building is occupied by its tenants. It has a private plant which generates electricity which it uses in its own store and sells to its tenants. It also sells electricity to other customers in the same block. It has applied to the relator to serve to it what is called break-down service. The relator is willing to furnish' such break-down service to Acker, Merrall & Condit for its own use and for the use of its tenants on condition that Acker, Merrall & Condit will not use that service for the benefit of its customers in other buildings in the same block. The Public Service Commission has directed the relator to furnish such service without any stipulation to confine the use of the same to itself and its tenants. This break-down service is primarily a service for emergency. It is used in case the service of the customer breaks down. It is used also when very little electricity is required as upon-holidays and Sundays and also at the peak of the service when a maximum current is required during the day. It is an important service to those furnishing their own electricity because it saves the expense [239]*239of emergency equipment. It saves the necessity of stronger equipment which will always furnish enough electricity for whatever the demands may be, and enables the owner of the private plant to use the electricity of the relator when it is unprofitable to operate the private plant by reason of the small amount of electricity used in certain times of the day and in certain times 'of the year. For all these emergencies the relator as a public service corporation must be prepared, and the electricity must be furnished at all times of day or night and on all days of the year, whether or not the amount used makes such service profitable to the relator. It enables an owner of a private plant to furnish the most of the electricity required by its tenants and its outside customers at a cheaper rate, and Acker, Merrall & Condit are furnishing electricity not only to its tenants, but to others in the same block at fifteen per cent less than the scheduled rates of the relator. The relator contends that in furnishing to those outside of its own tenants, Acker, Merrall & Condit is a competing company and, therefore, the relator should not be required to furnish to it break-down service, by which it is enabled to cut the price and sell for a less sum to those outside of its own building, although within its own block. If the furnishing of this service were required only as to this particular customer, the inequality would be slight, but there are 600 and more private plants in the city of New York, and if this order is sustained, there is no reason why a private plant cannot be installed in every block in the city of New York and electricity furnished therefrom at fifteen per cent less than the scheduled rates of the relator, and the relator be required to furnish the auxiliary service for these emergency cases which costs more to them than the regular service because of the extra equipment necessary in order to be prepared to give this emergency service.

In Matter of Break-down Service (1 P. S. C. Rep. 1st Dist. 130), break-down service is defined: “ The service which an electricity supply company renders when it provides a connection ’ between its system and the installation of a consumer having his own electric plant, and agrees to stand ready to supply such consumer with current whenever his plant actually breaks down in whole or in part. As currently used, however, [240]*240the term includes two other kinds of service: First, the service rendered by the supply company to the owners of private plants (both readiness-to-serve and current) during nights, Sundays, holidays and perhaps longer periods when only a small amount of current relatively is demanded; second, a like service rendered by the supply company to owners of private plants during the peak period of the day — usually about 5 p. m.— when the consumption of current reaches its maximum for the day. These two classes of service are quite different and distinct from pure break-down service; they are really auxiliary service; but in common usage the three classes are included in the single term ‘ break-down service.’ ”

In that case the Commission held that the relator must supply such service to private plants and said: “ The private electric plants are not competitors, for they do not distribute current beyond their own premises.”

In Matter of Frankel Brothers v. New York Edison Co. (4 P. S. C. Rep. 1st Dist. 272) the Commission held that relator was not obliged to supply auxiliary service to an electric plant, desiring to sell current to outside customers in competition with relator. The opinion in part reads:

" It appears in this case that the complainants took a customer away from the Edison Company and are supplying that customer at rates fifteen per cent below the company’s rates. It is conceivable that private plants, one in each block, might thus secure a considerable part of the business which is now conducted by the Edison Company; * * *.
When we required the companies to establish break-down service, including under the one title supplemental and auxiliary service as well, the Commission realized that it would be possible for a customer to shut down his own plant when most expensive for him to operate and switch on Edison service. But it was not contemplated that advantage would be taken of this action to require the Edison Company to supply emergency or auxiliary service to a competing company. * * *
Now, admittedly, there are some points of similarity between a company supplying electricity generally and a person who has his own private plant, and between these two stand the block plant and the person supplying adjoining buildings which he does not own or rent. But the line must be drawn [241]*241somewhere, and it seems reasonable to differentiate the company doing a general business, the block plant and the person selling current to persons outside of his own premises from the person who merely manufactures current for his own use and that of his tenants. This line of demarcation is recognized by the Public Service Commissions Law. It defines an electrical corporation as a corporation * * * owning, operating or managing any electric plant except where electricity is generated or distributed by the pro'ducer solely on or through private property for railroad or street-railroad purposes, or for its own use or the use of its tenants and not for sale to others.’ ”

In the case of People ex rel. Perceval v. Public Service Commission (163 App. Div. 705) it was held that where a person purchases electricity from a private plant which did not furnish night service, that person might have a breakdown service from the public service corporation. It is claimed by the relator here in distinguishing that contract that in that case the fact of competition was not established. There a plant was installed under a mutual working arrangement between the lessees of two buildings, which plant was intended to serve both buildings. The two buildings only were supplied by the private plant. Moreover, it was in that case the purchaser of the electricity and not the owner of the private plant that was making the application.

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Cite This Page — Counsel Stack

Bluebook (online)
191 A.D. 237, 181 N.Y.S. 259, 1920 N.Y. App. Div. LEXIS 4692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-new-york-edison-co-v-public-service-commission-for-the-nyappdiv-1920.