PPL Electric Utilities Corp. v. City of Lancaster and PA PUC

125 A.3d 837, 2015 Pa. Commw. LEXIS 449, 2015 WL 5974272
CourtCommonwealth Court of Pennsylvania
DecidedOctober 15, 2015
Docket462 M.D. 2013
StatusPublished
Cited by9 cases

This text of 125 A.3d 837 (PPL Electric Utilities Corp. v. City of Lancaster and PA PUC) 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
PPL Electric Utilities Corp. v. City of Lancaster and PA PUC, 125 A.3d 837, 2015 Pa. Commw. LEXIS 449, 2015 WL 5974272 (Pa. Ct. App. 2015).

Opinions

OPINION BY

Judge McCULLOUGH.

Presently before this Court is the application of PPL Electric Utilities Corporation (PPL) for summary relief seeking a judgment in its favor with respect to counts I, II, III, and V of its amended petition for review, specifically, a declaration that several provisions of Administrative' Ordinance No. 16-2013 (the Ordinance) enacted by the City of Lancaster (City) are invalid and preempted by the Public Utility Code (Code), 66 Pa.C.S. §§ 101-3316, and an order enjoining enforcement of these provisions.

I. Facts and Procedural History

The underlying facts of this case are not in dispute. PPL is a public utility, regulated by the Pennsylvania Public Utility Commission (PUC). PPL provides electric service to the public pursuant to a PUC-approved tariff. Under its tariff, PPL’s service territory covers 29 counties and 653 municipalities, including the City. On May 28, 2013, the City enacted Administrative Ordinance No. 2-2013 for the purpose of implementing a comprehensive program for management of the City’s rights-of-way, including management of public utilities and public utility facilities within these rights-of-way. The City also adopted, on this same day, a resolution which set forth a fee schedule related to activities and uses in the public rights-of-way.1 On September 17, 2013, PPL filed a petition for review in -the nature of a complaint in this Court’s original-jurisdiction seeking declaratory and injunctive relief. PPL joined the PUC as an additional defendant.

II. December 17, 2013 Ordinance

On December 17, 2013, the City enacted the Ordinance'at issue, which repealed the previously enacted Administrative Ordinance No. 2-20132 and implemented another program for management of the City’s rights-of-way, again including management of public utilities and public utility facilities within these rights-of-way. The City relied on the powers granted to it under the Third Class City Code (TCCC)3 [841]*841and the Home Rule Charter and Optional Plans Law4 in enacting the Ordinance.5

The Ordinance described the City’s rights-of-way as a “valuable resource and asset, not only for City purposes, but also for the benefit of third-party users, who rely upon the Rights-of-Way of the City for the installation and maintenance of various facilities owned and operated- by such third-parties to their economic benefit. ..(Ordinance at 2.) The Ordinance stated, that the management and maintenance of the public rights-of-way represented a “significant continuing operational and capítol cost” for the City, which, by extension, is passed on to City taxpayers, residents, and business owners. Id. The Ordinance also stated that it was necessary to recoup these maintenance and management costs from “the actual users of such facilities” in the.City’s rights-of-way. (Ordinance at 3.)

Section 263B of the Ordinance addresses PUC-regulated utilities and purports to grant various powers to the City. For example, section 263B-3 authorizes the City to conduct inspections to ensure that utility facilities within the rights-of-way do not constitute a public safety hazard and remain in compliance with PUC standards. Section 263B-4(6) authorizes the City to direct a utility to “temporarily or permanently remove, relocate, change, or alter the position of any Facilities within the Righb-of-Way” under certain circumstances, including “the construction, repair, maintenance, or installation of any City or other public improvement,” “the operations of the City,” the “vacation of a Street or the release of a utility easement,” or during emergency situations. (Ordinance at 7.) Additionally, section 263B-5 permits the City to impose an annual maintenance fee “in connection with the ongoing use and occupancy of City Rights-of-Way” and section 263D-1 allows thé City to impose a penalty for a violation of any provision of the Ordinance that is not within the exclusive jurisdiction of the PUC.6 (Ordinance at 8,16.)

[842]*842III. Amended Petition for Review

PPL thereafter filed an amended petition for review seeking declaratory and injunctive relief and joining the PUC as an additional defendant. PPL noted that it is a regulated utility subject to the provisions of the Code and, in accordance with certificates of public convenience issued by the PUC, was authorized to offer, render, furnish, or supply utility service to nearly 1.4 million customers throughout its certificated service territory, which encompasses approximately 10,000 square miles, all or portions of 29 counties, and more than 680 cities, boroughs, and townships. PPL also noted that it rendered service to the public in accordance with a PUC-approved tariff, which includes a list of services, rules for service, and rates for service.7 PPL stated that it owns, operates, and maintains approximately 43,000 miles of distribution lines, 5,000 miles of transmission lines, and 375 substations within its certificated territory.

' PPL argued, generally, that the Ordinance violated the policy of the Commonwealth for a uniform, state-wide regulation of public utilities and public utility facili[843]*843ties; was preempted by the Commission’s exclusive authority over the location, construction and maintenance of all public utility facilities; exceeded the City’s authority under the Pennsylvania Municipalities Planning Code (MPC);8 violated PPL’s statutory right under section 1511(e) of the Business Corporation Law of 1988,15 Pa.C.S. § 1511(e), to use public rights-of-way without charge;9 and imposed a fee schedule and penalties that amount to an unlawful tax.

More specifically, PPL’s amended petition for review included five counts. In Count I, PPL alleged that the City’s assessment of an annual maintenance fee under section 263B-5 and the fee resolution interfered with the PUC’s exclusive jurisdiction and violated PPL’s rights under the MPC. Count II alleged that the inspection requirements of section 263B-3 were preempted by the Code and violated PPL’s rights under the MPC. Count III alleged that the Code preempted section 263D-1. Count IV alleged that the maintenance fee was an illegal tax. Count V averred that the Ordinance’s relocation and removal provisions interfered with the PUC’s exclusive jurisdiction and violated PPL’s rights under the MPC.10

The City filed preliminary objections alleging that this Court lacked jurisdiction because the PUC was not an indispensable party to this action. The City further alleged a demurrer as to all counts stating that it acted entirely within its police powers in adopting the Ordinance, PPL failed to plead how the specific Ordinance provisions interfere with the PUC’s exclusive jurisdiction or are preempted by the Code, and the .MPC is- irrelevant to the present action. PPL filed a response denying these ■ allegations. By order dated April 28, 2014, this Court overruled the City’s preliminary objections and directed the City to file an answer to PPL’s amended petition for review.

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Bluebook (online)
125 A.3d 837, 2015 Pa. Commw. LEXIS 449, 2015 WL 5974272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ppl-electric-utilities-corp-v-city-of-lancaster-and-pa-puc-pacommwct-2015.