Petition of Vermont Welfare Rights Organization

326 A.2d 828, 132 Vt. 622, 7 P.U.R.4th 408, 1974 Vt. LEXIS 407
CourtSupreme Court of Vermont
DecidedOctober 1, 1974
Docket4-74
StatusPublished
Cited by6 cases

This text of 326 A.2d 828 (Petition of Vermont Welfare Rights Organization) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petition of Vermont Welfare Rights Organization, 326 A.2d 828, 132 Vt. 622, 7 P.U.R.4th 408, 1974 Vt. LEXIS 407 (Vt. 1974).

Opinion

Smith, J.

The Vermont Welfare Rights Organization (V.W.R.O.), represented by Vermont Legal Aid, Inc.,petitioned the Public Service Board under B V.S.A. § 806 to promulgate *624 rules and regulations governing disconnection of customers’ service by utility companies in Vermont. Proposed rules accompanied the petition. The Board commenced rule-making proceedings pursuant to 3 V.S.A. § 803 and, after receiving comments and holding hearings, issued General Order No. 57. This Order embodies V.W.R.O.’s proposed rules and regulations, as amended during the rule-making process.

The New England Telephone & Telegraph Company, a utility affected by the Order which has unsuccessfully sought a stay of the Order by the Board, appeals here under 30 V.S.A. § 12 and 3 V.S.A. § 815(a) requesting this Court to hold the Order null and void. No serious contention is advanced that the Board failed to comply with the rule-making procedures of the Administrative Procedure Act (A.P.A.), Chapter 25 of Title 3. The issue before us is whether the Board had authority to employ such procedures to issue an order of this nature or whether it was required to utilize the contested case procedures of the A.P.A. and to comply with the rate-making statutory provisions of Title 30.

General Order No. 57 is an attempt to prescribe when, under what conditions, and in what manner a utility may disconnect service, for nonpayment of a bill or otherwise. Possibly the most controversial section of this Order is the fifth, which prohibits disconnéction where a customer claims inability to pay an outstanding bill in full if such customer:

(1) Pays a reasonable portion of the outstanding bill;
(2) Agrees to pay all future bills as they become due; and
(3) Agrees to pay a reasonable portion of the outstanding bill in installments until it is fully amortized.

One of the factors which the utility must consider in determining what is a “reasonable portion” is the size of any deposit required of the customer. Another section of the Order prohibits a utility from charging more than its standard reconnection fee even if reconnection occurs after 5:00 p.m., where the disconnection occurred after 2:00 p.m. Gas and electric utilities must make available to their residential, nonseasonal customers a-“budget plan”, which is a billing procedure averaging estimated utility costs over a yearly period.

*625 The Order, where riot specifically limited to certain utility industries, as in the example of the budget plan mentioned above, applies to all electric, gas, water, or telephone utilities under the jurisdiction of the Board. The final section requires that all “[ujtilities subject to this General Order shall file with the Board on or before January 10, 1974, revisions of any tariff provisions that are inconsistent with the provisions hereof.”

V.W.R.O. contends that this Court lacks jurisdiction because the appellant should first challenge the validity or applicability of General Order No. 57. as a rule in the county, now superior, court under 3 V.S.A. § 807. However, we recently held in a . decision dissolving the then county court’s injunction of the “purchase power clause” that' any order that “has its crucial impact on the rights and liabilities of the parties as a rate regulation”, Moore v. Gilbert, 132 Vt. 365, 321 A.2d 13, 15 (1974), should not be stayed, except by the Board or this Court or a justice thereof. Id. Appeals from an order of this type come directly here under 30 V.S.A. § 12; it would, of course, be absurd to send an appellant to a lower court because of the possibility that that tribunal might approve, rather than stay, an order operating as a rate regulation.

General Order No. 57 is a regulation affecting rates. It requires a utility to continue furnishing service to a customer unable to pay his bill in full when due without allowing it to impose a finance or interest charge as a condition to accept-, ing installment payments. It is as much a regulation affecting rates or rate schedules as was the then Public Service Commission’s order governing when the utility could require a deposit from a subscriber vacated in Carpenter v. Home Telephone Co., 122 Vt. 50, 52, 163 A.2d 838 (1960).

A utility has “implied power to adopt reasonable and lawful regulations, without unjust discrimination, for the conduct of its business.” Hawkins v. Vermont Hydro-Electric Co., 98 Vt. 176, 181, 126 Vt. 517 (1924). Utilities governed by General Order No. 57 have filed their disconnect regulations with the Board under 30 V.S.A. § 225. In this Order, the Board requires' the utilities to file revisions of any of their *626 previous disconnect regulations inconsistent with the terms of the Order.

In promulgating this directive, the Board did not proceed in accordance with the applicable statutory requirements. “Rate schedules on file with the Public Service Commission [Board] become lawful rates which remain in force until changed in the manner prescribed by statute.” Carpenter v. Home Telephone Co., supra, 122 Vt. at 53; accord, North v. City of Burlington, 125 Vt. 240, 243, 214 A.2d 82 (1965). “30 V.S.A. § 216 [now § 218] is the authority under which the commission [board] may, in a proper hearing, set substitute rates and schedules, and make orders relative to the furnishing of adequate service.” Carpenter v. Home Telephone Co., supra, 122 Vt. at 54. To substitute its regulations for those which a utility has previously adopted and filed, the Board must first find the individual company’s regulations to be unjust, unreasonable, insufficient, unjustly discriminatory, or preferential under 30 V.S.A. § 218.

The Board’s finding that “Although in many instances utility practices are fair and reasonable, in many respects present disconnect practices and procedures are arbitrary, unjust, discriminatory and oppressive” is an insufficient foundation for substitution of its own regulations governing disconnect practices. This finding, paraphrasing the statutory language of 30 V.S.A. § 218, is unaccompanied by any factual supporting statements required by 3 V.S.A. § 812. Cf. In re J.M., 131 Vt. 604, 608, 313 A.2d 30 (1973). The Board’s attempt to apply this conclusory finding to approximately one hundred eighty utilities in Vermont and its failure to examine each individual utility’s regulations to determine whether such regulations are either satisfactory or wanting constitutes noncompliance with the rate-making requirements of Title 30.

Because General Order No. 57 is a regulation affecting rates, the contention advanced that the Carpenter

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Bluebook (online)
326 A.2d 828, 132 Vt. 622, 7 P.U.R.4th 408, 1974 Vt. LEXIS 407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petition-of-vermont-welfare-rights-organization-vt-1974.