Public Service Co. of Colorado v. Shaklee

784 P.2d 314, 13 Brief Times Rptr. 1579, 1989 Colo. LEXIS 578, 1989 WL 152130
CourtSupreme Court of Colorado
DecidedDecember 18, 1989
Docket88SC179
StatusPublished
Cited by13 cases

This text of 784 P.2d 314 (Public Service Co. of Colorado v. Shaklee) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Public Service Co. of Colorado v. Shaklee, 784 P.2d 314, 13 Brief Times Rptr. 1579, 1989 Colo. LEXIS 578, 1989 WL 152130 (Colo. 1989).

Opinions

Justice MULLARKEY

delivered the Opinion of the Court.

We granted certiorari to review the decision of the court of appeals in Public Service Co. of Colorado v. Shaklee, 759 P.2d 774 (Colo.Ct.App.1988), reversing the district court’s decree in condemnation. The court of appeals found that the taking in a condemnation proceeding by the Public Service Company of an easement for the transmission and distribution of electricity was improper because it was done for a private and not a public use. The court of appeals also found that the condemnation was improper because Public Service Company lacked authority to extend its facilities into an area which it was not certificated to serve. We now reverse the judgment of the court of appeals.

I.

This dispute stems from an effort by the petitioner, the Public Service Company of Colorado (Public Service), an electrical and gas utility company, to provide electrical service to the Adolph Coors Company (Coors) for mining activities in Weld County. Coors contacted Public Service in the Spring of 1979 seeking to secure a supply of electricity for its Weld County mine. As discussed below, under Colorado law, the Public Utilities Commission is authorized to issue certificates of public convenience and necessity which designate the geographical service area of a public utility. § 40-5-102, 17 C.R.S. (1984). The holder of such a certificate is commonly described as being “certificated” to serve customers in its designated area. Public Serv. Co. v. Public Util. Comm’n, 765 P.2d 1015, 1021 (Colo.1988). A utility which has been assigned a specific territory has an exclusive right to provide service in that territory unless it is established that the certificated utility is unable or unwilling to provide adequate service. Id.

To provide Coors with the electrical service, Public Service determined that a 115 kv transmission line extension would have to be built from Public Service’s Hudson substation to the Coors mine site, a distance of about 12.5 miles. Most of the transmission line is located within territory which was certificated to Public Service for utility service, pursuant to section 40-5-102. However, the line extends one mile into territory then certificated to Home Light and Power Company (Home Light), which at the time was a wholly-owned subsidiary of Public Service. The Coors’ mine itself is located in territory then certificated to Home Light, however, Public Service obtained permission from Home Light to serve the Coors facility.1 Public Service reached agreement with Coors to provide the extension of service to the Coors mining operation. Under the terms of that agreement, Coors paid for most of the $1.3 million cost of the transmission line, while [316]*316Public Service retained title and the right to provide service to future customers from the extension line. Public Service also agreed to operate and maintain the transmission line.

In the Summer of 1980, Public Service met with landowners affected by the power line construction including the respondents, the Shaklees. When Public Service’s efforts to reach agreement with the Shaklees to obtain a 75-foot-wide easement failed, Public Service brought eminent domain proceedings pursuant to sections 38-5-104 to -107, 16A C.R.S. (1982). On March 10, 1981, the district court granted Public Service’s request for immediate possession of the easement across the Shaklee property pursuant to section 38-5-106.

Although the Shaklees properly filed an original proceeding in this court to challenge the immediate possession order, they did not seek an immediate stay from the district court pursuant to C.R.C.P. 62 ordering the halt of construction. By the time this court issued a stay order on April 9, 1981, the transmission line had been built. In Shaklee v. District Court, 636 P.2d 715 (Colo.1981), we agreed with the Shaklees that the question of whether the contemplated use of the Public Service easement was a public use, as required by the Colorado Constitution, should have been resolved by the district court before it ruled on Public Service’s motion for immediate possession.

On remand, the district court found that “the proposed condemnation in this case is for a public use or purpose.” The Shaklees were awarded $8,800 as compensation for the easement.

The Shaklees successfully appealed the decision of the district court to the court of appeals, arguing that Public Service was required to seek a certificate of public convenience and necessity pursuant to section 40-5-101(1), 17 C.R.S. (1984), prior to proceeding with its eminent domain action. That statutory provision governs new construction and extensions of a “facility, plant, or system.” The Shaklees also asserted and the court of appeals agreed that the district court should not have granted condemnation of the easement because it was not for a public purpose as required by the Colorado Constitution, Article II, Section 14. We examine and reject each of these claims in turn.

II.

The Shaklees argue that Public Service’s failure to obtain a certificate of public convenience and necessity pursuant to section 40-5-101(1), 17 C.R.S. (1984), precluded Public Service from proceeding with its condemnation action.2 We disagree.

In Miller v. Public Service Co., 129 Colo. 513, 272 P.2d 283 (1954), appeal dismissed, 348 U.S. 923, 75 S.Ct. 338, 99 L.Ed. 724 (1955), we construed this certificate requirement and we held that:

[S]uch certificate is not necessary for the purposes of condemnation and relates solely to the question of use after the property has been acquired by condemna-tion_ The so-called certificate is only [317]*317a permit or license to use and enjoy land that has been condemned; it is not a condition precedent to the right to condemn; it has no relationship whatever with the matter of condemnation.

Miller, 129 Colo. at 517, 272 P.2d at 285.

The court of appeals stated that Miller is distinguishable on its facts because in Miller the condemnation proceedings were stayed, pending appeal, before construction of the new facility had even begun, whereas here the condemnation proceedings have been completed and the transmission line is up and in operation. Public Serv. Co. of Colorado v. Shaklee, 759 P.2d at 776.

We do not agree that this factual difference requires a different outcome here from that reached in Miller. The requirement that a utility such as Public Service obtain a certificate of public convenience and necessity may be relevant to the legality of the construction of the transmission lines. However, obtaining a certificate is not required to go forward with a condemnation proceeding.3 Because the court of appeals was considering only an appeal from a condemnation proceeding, the question of the legality of the construction project itself was not before it.

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Public Service Co. of Colorado v. Shaklee
784 P.2d 314 (Supreme Court of Colorado, 1989)

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Bluebook (online)
784 P.2d 314, 13 Brief Times Rptr. 1579, 1989 Colo. LEXIS 578, 1989 WL 152130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-service-co-of-colorado-v-shaklee-colo-1989.