S.C. Elec. & Gas Co. v. Whitfield

329 F. Supp. 3d 191
CourtDistrict Court, D. South Carolina
DecidedJuly 26, 2018
DocketCivil Action No.: 3:18-cv-01795-JMC
StatusPublished
Cited by1 cases

This text of 329 F. Supp. 3d 191 (S.C. Elec. & Gas Co. v. Whitfield) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S.C. Elec. & Gas Co. v. Whitfield, 329 F. Supp. 3d 191 (D.S.C. 2018).

Opinion

J. Michelle Childs, United States District Judge *198ORDER AND OPINION

Plaintiff South Carolina Electric and Gas Company ("SCE & G") brings this action pursuant to 42 U.S.C. § 1983 alleging constitutional claims against the following Defendants in their official capacities as Commissioners of the South Carolina Public Service Commission ("PSC"): Swain E. Whitfield, Comer H. Randall, John E. Howard, Elliot F. Elam, Jr., Elizabeth B. Fleming, Robert T. Bockman, and G. O'Neal Hamilton (collectively, "Defendants"). (ECF No. 1.) Specifically, SCE & G alleges that its rights under the Due Process Clause of the Fourteenth Amendment to the United States Constitution; the Bill of Attainder Clause of Article 1, § 10 of the United States Constitution; and the Takings Clause of the Fifth and Fourteenth Amendments to the United States Constitution were violated when the South Carolina General Assembly passed 2018 South Carolina Laws Act 287 (H.B. 4375) ("Act 287"1 ) and 2018 South Carolina Laws Resolution 285 (S. 0954) ("Resolution 285").2 (ECF No. 1 at 1 ¶ 2 & 42 ¶ 216-47 ¶ 258.)

This matter is before the court by way of Motions to Dismiss pursuant to Rules 12(b)(1) and 12(b)(6) filed by Defendants and by South Carolina House of Representatives Speaker Jay Lucas ("Speaker Lucas") and South Carolina Senate President Pro Tempore Hugh K. Leatherman, Sr. ("President Leatherman") (together "Intervenor Defendants").3 (ECF Nos. 48, 50, 52.) SCE & G has not yet responded to Defendants and Intervenor Defendants' Motions; however, as explained below, the pleading deficiencies in SCE & G's Complaint cannot be remedied by arguments of counsel. Therefore, in light of the expedited schedule in this case, the court exercises its discretion to decide the matter without awaiting SCE & G's response. See , e.g. , Planned Parenthood of Kan. v. Mosier , Case No. 16-2284-JAR-GLR, 2016 WL 3597457, at *1 (D. Kan. July 5, 2016) (deciding a motion to dismiss in a preliminary injunction case even though the motion to dismiss had not been fully briefed), rev'd , on other grounds, 882 F.3d 1205 (10th Cir. 2018). For the reasons stated below, the court GRANTS IN PART AND DENIES IN PART the Motions to Dismiss.

I. RELEVANT BACKGROUND TO PENDING MOTIONS

This case arises out of SCE & G's attempt to construct two nuclear reactors *199known as VC Summer Units 2 and 3 (the "Project") in Jenkinsville, South Carolina, and the South Carolina General Assembly's passage of Act 287 and Resolution 285. (E.g. , ECF No. 1 at 17 ¶¶ 81, 82 & 43 ¶ 220.) The purpose of the Project was to increase SCE & G's base load capacity,4 and enable it to meet the electricity demands of its South Carolina customers. (See ECF No. 1 at 6 ¶ 19, 13 ¶¶ 56-59.) SCE & G alleges that the incentive for the Project occurred as a result of the South Carolina General Assembly's passage of the Base Load Review Act, S.C. Code Ann. § 58-33-210 et seq . (2015 5 ) ("BLRA"), which became "effective upon signature of the Governor on May 3, 2007."6 S.C. Code Ann. § 58-33-210.

The PSC is granted the power to regulate, oversee, and approve "electric rates that SCE & G charges to retail electric ratepayers, and prudency determinations of SCE & G's actions under the BLRA." (ECF No. 1 at 5 ¶ 15 (citing S.C. Code Ann. § 58-3-140(A) ("[T]he commission is vested with power and jurisdiction to supervise and regulate the rates and service of every public utility in this State and to fix just and reasonable standards, classifications, regulations, practices, and measurements of service to be furnished, imposed, or observed, and followed by every public utility in this State.") ).) As a result, all rates charged by a utility in the state of South Carolina must be approved by the PSC. See S.C. Code Ann. §§ 58-27-820, -830. Prior to the passage of Act 287 and Resolution 285, South Carolina law provided two processes for utility rate changes. Pursuant to 2006 S.C. Acts 318 (codified in and modifying Title 58, specifically S.C. Code Ann. §§ 58-27-860, -870, -920, -930, and -33-310), a public utility desiring to change its rates began the process by filing a schedule of its proposed rates with the PSC. S.C. Code Ann. § 58-27-860. The PSC then held a public hearing on the proposed rates and within six (6) months granted, modified, or denied the proposed rate schedule. S.C. Code Ann. § 58-27-870(A), (E). A utility was barred from filing another proposed rate schedule for twelve (12) months after the filing of a proposed rate schedule. S.C. Code Ann. § 58-27-870(E). However, under S.C. Code Ann. § 58-27-920, the PSC could sua sponte issue new rates, subject to certain procedural protections for utilities, see S.C. Code Ann. § 58-27-930. Any final order of the PSC was appealable to the Supreme Court of South Carolina or the South Carolina Court of Appeals. S.C. Code Ann. §§ 58-33-310, 58-27-2310.

Pursuant to the BLRA, a utility undertaking the construction of a base load review plant, as defined in S.C. Code Ann. § 58-33-220(2), could petition the PSC for permission to charge revised rates to recoup construction costs of the plant.

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Bluebook (online)
329 F. Supp. 3d 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sc-elec-gas-co-v-whitfield-scd-2018.