People's Electric Cooperative, Inc. v. State ex rel. Oklahoma Corp. Commission

2002 OK CIV APP 57, 50 P.3d 579, 73 O.B.A.J. 1580, 2002 Okla. Civ. App. LEXIS 35, 2002 WL 924912
CourtCourt of Civil Appeals of Oklahoma
DecidedJanuary 2, 2002
DocketNo. 95,719
StatusPublished
Cited by3 cases

This text of 2002 OK CIV APP 57 (People's Electric Cooperative, Inc. v. State ex rel. Oklahoma Corp. Commission) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People's Electric Cooperative, Inc. v. State ex rel. Oklahoma Corp. Commission, 2002 OK CIV APP 57, 50 P.3d 579, 73 O.B.A.J. 1580, 2002 Okla. Civ. App. LEXIS 35, 2002 WL 924912 (Okla. Ct. App. 2002).

Opinion

KEITH RAPP, Judge.

111 People's Electric Cooperative (PEC), the respondent below, appeals the decision of the Oklahoma Corporation Commission (OCC) finding that it had jurisdiction over PEC for purposes of regulating terms and conditions of service even though PEC's membership had elected not to be regulated by the OCC.

BACKGROUND

T2 The parties to this appeal have no material dispute as to the facts. The matter began when a PEC customer complained to the OCC's Consumer Services Division and requested assistance regarding a problem with an electric bill. PEC declined to cooperate with the OCC relative to the complaint on the ground that OCC no longer regulated PEC.

T3 OCC instituted a contempt action against PEC alleging that PEC was in violation of Article IX, section 18 of the Oklahoma Constitution and 17 0.8.1991, § 1, both of which define the general and specific authority of the OCC. OCC further alleged that PEC violated OCC Rules 165:85-1-4(A) and (B) and 165:85-21-40 by failing to maintain records and to cooperate with OCC in the investigation of a consumer complaint.1

T4 The issue before the OCC, and here, involves the interpretation of 17 0.8.1991, § 158.27. PEC maintains that the OCC has no authority over it regarding consumer pro[581]*581tection and terms and conditions of service because of the election. OCC asserts that the sole result of the election by PEC members was to remove the OCC's regulatory authority over the rates and charges imposed by PEC. The parties do not dispute that the PEC membership duly voted under the provisions of 17 0.8.1991, § 158.27, to opt out of OCC regulation. Thus, the threshold question was whether OCC had jurisdiction to consider the consumer complaint and take action under its Rules.

15 At the hearing before the Administrative Law Judge (ALJ), the parties agreed to submit the issue of OCC jurisdiction for consideration. The ALJ ruled in favor of PEC and the matter was appealed to the full Commission.

T6 The Commission, by a 2-1 vote, reversed the ALJ's holding that the OCC did not have jurisdiction. In doing so, the Commission noted that it had been informed that the underlying complaint had been resolved. The Commission then decided to treat the case as a declaratory judgment action. PEC appeals.

STANDARD OF REVIEW

{7 The parties do not agree upon the standard for review. OCC suggests that the "any substantial evidence" test applies notwithstanding the absence of any disputed fact and that the issue involves construction of a statute and jurisdiction. PEC, in turn, suggests a de novo standard because the issue for review presents a question of law.

T8 Although not discussed by either side, it is to be noted that the part of the Oklahoma Administrative Procedures Act governing declaratory judgments, 75 O.S.1991, § 307, also applies to the OCC.2 The standard of review of declaratory decisions under Section 307 is governed by 75 O.S.1991, § 822, and administrative decisions of this nature will not be disturbed in the absence of constitutional violation or error of law.

19 Moreover, where the facts are not disputed an appeal presents only a question of law. Baptist Bldg. Corp. v. Barnes, 1994 OK CIV APP 71, 15, 874 P.2d 68, 69. Matters involving legislative intent present questions of law which are examined independently and without deference to the trial court's ruling. Salve Regina College v. Russell, 499 U.S. 225, 111 S.Ct. 1217, 113 L.Ed.2d 190 (1991); Keizor v. Sand Springs Ry. Co., 1993 OK CIV APP 98, ¶ 5, 861 P.2d 326, 328. The appellate court has the plenary, independent and nondeferential authority to reexamine legal rulings. Neil Acquisition, L.L.C. v. Wingrod Investment Corp., 1996 OK 125, 982 P.2d 1100 n. 1.

{10 Therefore, because the facts are not disputed and the OCC chose to treat the matter in its final stages as a procedure for declaratory judgment, without objection, this review is then one of law, and this Court will employ the de novo standard of review.

ANALYSIS AND REVIEW

¶ 11 PEC maintains that it is completely exempt from OCC regulation pursuant to 17 O0.S. Supp.2000, § 158.27 (E), save for the stated exceptions listed therein pertaining to territory, acquisition of customers, and competition between utilities. The OCC's Consumer Division asserts that Section 158.27(E) applies only to rates and charges and that the OCC retains authority in all other areas under 17 0.8. Supp.2000, § 158.27 (A). The majority of the OCC Commissioners found the statute was plain and unambiguous and ruled that the OCC did possess the authority to regulate in areas other than rates and charges.

112 This Court holds that when the members of an electric cooperative, subject to the provisions of 17 0.8. Supp.2000, § 158.27, duly elect to exempt themselves from OCC regulation, then the seope of such exemption applies only to rates and charges and not to rules affecting the cooperative's [582]*582services and operation. In reaching this conclusion, this Court has examined Section 158.27 as a whole with a view of ascertaining and carrying out the intent of the Legislature.

The determination of legislative intent controls judicial statutory construction. Legislative intent is determined from the language of the statute in light of its general purpose and object. We presume that the Legislature intends what it expresses in a statute. Except when a contrary intention plainly appears, the words used are given their ordinary and common definitions.

Oglesby v. Liberty Mut. Ins. Co., 1992 OK 61, 1 8, 832 P.2d 834, 889-40.

1 13 The Corporation Commission finds its origin in Article 9 of the Oklahoma Constitution. As originally drafted, the Constitution empowered the OCC with the authority and duty of "supervising, regulating and controlling" transmission companies "in all matters relating to the performance of their public duties and their charges therefor, and of correcting abuses and preventing unjust discrimination and extortion by such companies. ..." The OCC is further charged with the responsibility to promulgate rules and regulations to carry out its duty and authority. Okla. Const. art. 9, § 18. This constitutional charge has never changed.

{ 14 PEC finds its roots in the Rural Elec-trice Cooperative Act (RECA), although the record does not reflect when PEC was founded. In 1989, the Oklahoma Legislature enacted RECA and provided that cooperatives transacting business under the Act "shall be exempt in all respects from the jurisdiction and control of the Corporation Commission of this State." 1989 Okla. Sess. Laws, c. 42, § 27; 18 0.8. Supp.1989, § 487.26.

¶ 15 Section 487.26 was repealed in 1971 when the Legislature enacted the Retail Electric Supplier Certified Territory Act (RECTA).1971 Okla. Sess. Laws, c. 118, § 12. Section 158.27 of Title 17 originated with RECTA. 1971 Okla. Sess. Laws, c. 118, § 7. The statute gave OCC power in two general areas-rates or charges and terms and conditions of service. The statute provided, in part:

A.

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2002 OK CIV APP 57, 50 P.3d 579, 73 O.B.A.J. 1580, 2002 Okla. Civ. App. LEXIS 35, 2002 WL 924912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-electric-cooperative-inc-v-state-ex-rel-oklahoma-corp-oklacivapp-2002.