Peoples Natural Gas Co. v. Public Service Commission

123 A. 799, 279 Pa. 252, 1924 Pa. LEXIS 713
CourtSupreme Court of Pennsylvania
DecidedFebruary 4, 1924
DocketAppeals, Nos. 19 and 20
StatusPublished
Cited by10 cases

This text of 123 A. 799 (Peoples Natural Gas Co. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peoples Natural Gas Co. v. Public Service Commission, 123 A. 799, 279 Pa. 252, 1924 Pa. LEXIS 713 (Pa. 1924).

Opinion

Opinion by

Mr. Justice Simpson,

The Peoples Natural Gas Company (hereinafter called the Peoples Company) was chartered by the Commonwealth, under the provisions of the Natural Gas Act of May 29, 1885, P. L. 29, for the purpose of dealing in, transporting and supplying natural gas to the public, and was authorized (subject to obtaining municipal consent to the occupancy of the streets) to furnish it in a large number of municipalities of this State, among them, by an amendment to the charter, being the City of Johnstown.

At the time the Public Service Company Law of July 26, 1913, P. L. 1374, went into effect, and during the entire period covered by this litigation, the Peoples Com[256]*256pany purchased much of the gas it needed from the Hope Natural Gas Company of West Virginia, (a “separate and independent” corporation, hereinafter called the Hope Company) which piped it from wells in that state to a point on the line between the states of Pennsylvania and West Virginia, and there delivered it into the pipe line of appellant, which had no title to or interest in the gas until it passed into Pennsylvania, the Hope Company having none thereafter. In the petitions and answers filed by appellant, it is repeatedly stated that the gas was furnished because of a contract between the two companies, the terms of which were not disclosed, however, the only evidence on the point being that the gas was purchased “in West Virginia, at the West Virginia state line, by meter measurement.”

The pipe line of the Peoples Company, containing the gas thus purchased, was connected, at various points in this state, with other pipe lines, carrying gas obtained from its Pennsylvania wells, and part of the combined gas was delivered by it to consumers in a large number of municipalities of the state, before reaching a point opposite the City of Johnstown. In order that gas might be supplied to users in that city, appellant entered into a contract with the Johnstown Fuel Supply Company (hereinafter called the Johnstown Company, which was also chartered under the Natural Gas Act of 1885, and had municipal consent to the use of the streets), by virtue of which appellant expressly agreed to and thereafter did construct a spur from its main line to a point near the city, and there connected with the line of the Johnstown Company, through which gas was delivered to consumers in that city, appellant receiving, as consideration for the gas so furnished, certain percentages of the amounts paid by the consumers. It subsequently continued its pipe line beyond Johnstown, and since then has supplied private consumers in certain municipalities reached by this extension. None of its gas is sent out of the State of Pennsylvania.

[257]*257On July 15, 1916, the Johnstown Company filed a new tariff, increasing its rates; objections were made thereto, and it appearing to the Public Service Commission that one of the causes, partly relied on as justifying the increase, was the price payable to the Peoples Company, under the contract above referred to, the commission directed that the latter company be cited and an opportunity given it to be heard. It answered, denying the jurisdiction of the commission, claiming that performance of the contract with the Johnstown Company was not a public service, and also because, until actual delivery, the gas was in interstate commerce, and not subject to state regulation. Evidence was taken, and later appellant moved to dismiss the proceedings against it, for the reasons set forth in its original answer. The commission overruled the motion, and directed appellant to file a tariff of rates. Instead of doing this, it appealed to the Superior Court (sub nom. Franke v. Johnstown Fuel Supply Company, 70 Pa. Superior Ct. 446), which affirmed the order of the commission. An appeal, then taken to this court, was dismissed, solely because the order complained of was interlocutory, and, standing alone, was not the subject of an appeal: Peoples Natural Gas Company v. Public Service Commission, 268 Pa. 235.

In the meantime, pending our decision as above, appellant duly cancelled its contract with the Johnstown Company, effective as of October 1, 1920, and gave notice of its intention to deliver no more gas after that date. Before that time arrived, however, appellant complied with the order of the commission, by filing a tariff as between it and the Johnstown Company, specifying therein the rates named in the contract, and adding that service would be discontinued in accordance with the notice above mentioned.

On September 1, 1920, the mayor of Johnstown, as an individual consumer of gas and as the representative of the citizens generally, filed with the commission a pe[258]*258tition against both the Johnstown Company and the Peoples Company, asking that the latter be required to continue the supply of gas to the former, despite said notice. The former answered, joining in the prayer of the petition. The latter also answered, renewing its objections to the jurisdiction of the commission, averred that it, appellant, had a right to discontinue the service, and that a steady decrease in its supply of gas compelled it to do so, because of its alleged paramount duty to private consumers in municipalities where it furnished gas to them directly. A hearing was had, and an interlocutory order made requiring appellant, until further order of the commission, to continue supplying gas to the Johnstown Company, for use by consumers in that city.

On January 27, 1921, appellant filed in the office of the secretary of the Commonwealth, a paper certifying that, by proper corporate action, taken in accordance with section 5 of the Natural Gas Act, it had altered its territory for the supply of natural gas, by eliminating the City of Johnstown therefrom; and, based upon this action, and its objections to the jurisdiction of the commission, it filed with the latter a petition for the vacation of the interlocutory restraining order. The Johnstown Company made answer, and in turn applied to the commission to fix the rates to be paid by it to appellant, pendente lite. Testimony was taken on these various applications, a hearing had, and the commission decided that, under the Public Service Company Law, appellant could not limit its field of service without the consent of the commission, which had neither been asked nor granted. It therefore directed the supply to be continued until such consent was obtained, but gave appellant leave to file a new tariff.

From this decision, the Peoples Company appealed to the Superior Court, which affirmed the order of the commission (Peoples Natural Gas Co. v. Public Service Commission, 79 Pa. Superior Ct. 560); and from that decree the present appeal was allowed. In this court [259]*259the argument took a far wider range than the exigency of the case warranted. If appellant had no right, under our statute, to curtail its field of service and refuse to deliver gas in a part thereof without first obtaining the consent of the commission, then the decree must be affirmed, unless it conflicts with appellant’s rights under the Constitution of the United States, or Acts of Congress passed in pursuance thereof.

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Bluebook (online)
123 A. 799, 279 Pa. 252, 1924 Pa. LEXIS 713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-natural-gas-co-v-public-service-commission-pa-1924.