SOUTHEAST MISS. LEGAL SERV. CORP. v. Miss. Power Co.

605 So. 2d 796, 1992 WL 240793
CourtMississippi Supreme Court
DecidedAugust 12, 1992
Docket90-CC-0948
StatusPublished
Cited by7 cases

This text of 605 So. 2d 796 (SOUTHEAST MISS. LEGAL SERV. CORP. v. Miss. Power Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SOUTHEAST MISS. LEGAL SERV. CORP. v. Miss. Power Co., 605 So. 2d 796, 1992 WL 240793 (Mich. 1992).

Opinion

605 So.2d 796 (1992)

SOUTHEAST MISSISSIPPI LEGAL SERVICES CORPORATION, Mississippi Legal Services Coalition, General Motors Corporation, Peavey Electronics Company
v.
MISSISSIPPI POWER COMPANY.

No. 90-CC-0948.

Supreme Court of Mississippi.

August 12, 1992.

John C. Jopling, Hattiesburg, Bob Arentson, John H. Holloman, III, Watkins, Ludlam & Stennis, Jackson, for appellants.

Ben H. Stone, James S. Eaton, H.R. Wilder, Keith T. Hill, Eaton & Cottrell, Gulfport, for appellee.

En Banc.

ON PETITION FOR REHEARING

ROBERTSON, Justice, for the Court:

I.

Today's appellants are electricity consumers and their representatives, and they seek judicial review of an administrative order finding a power company's rate increases "not to exceed rates which are just and reasonable." Appellants present substantive and procedural objections to the order below, none of which possess power that we might strike it. We affirm.

II.

Mississippi Power Company ("MPC") is a public utility engaged in the business of providing electric service to and for the public for compensation in Southeast Mississippi. *797 MPC has its principal place of business in Gulfport, Mississippi, and holds a certificate of public convenience and necessity authorizing it to operate in portions of twenty-three counties.

In 1986, MPC perceived that it was in need of a rate increase and, rather than pursuing the normal and customary processes, proposed to the Mississippi Public Service Commission a performance-based, formula-type rate plan which it labeled Performance Evaluation Plan (PEP). By order of August 17, 1986, the Mississippi Public Service Commission ("the Commission") adopted the PEP as the authorized method for setting MPC's rates. Various parties — including today's appellants — objected and appealed to this Court, which reversed. State ex rel. Pittman v. Mississippi Public Service Commission, 538 So.2d 367 (Miss. 1989). We held that the Mississippi Public Utility Regulatory Act as it then read, Miss. Code Ann. §§ 77-3-1, et seq. (1972 and Supp. 1986), did not authorize the Commission to approve any such formula-type rate adjustment plan.

In the wake of this action, MPC resorted to more conventional processes. On April 13, 1990, the MPC filed with the Commission a Notice of Intent to Increase Rates. This notice was contained in docket number 90-UN-0127 (0127) and asked for a 1.8% increase over the rates previously approved by the Commission back in May of 1982. The requested increase in 0127 was to become effective as of May 17, 1990 and was projected to result in a total revenue increase of $5.6 million.

But three days later, April 16, 1990, the MPC filed with the Commission another Notice of Intent to Increase Rates in docket number 90-UN-0128 (0128). This asked a 1.9% rate increase from the rates proposed in 0127, and was to become effective as of May 18, 1990. Revenue increases were projected at $6.0 million.

Those who had objected to the PEP sprang into action. The Attorney General promptly filed with the Commission his Notice of Intervention. On April 20, 1990, General Motors Corporation ("GMC") filed its Petition to Intervene. A week later, on April 27, 1990, these were joined by two more PEP opponents, the Southeast Mississippi Legal Services Corporation and the Mississippi Legal Services Coalition (collectively "Legal Services"). The following week, May 4, 1990, Peavey Electronics Corporation ("Peavey"), filed a Petition to Intervene.

In the meantime, the Commission ordered consolidated the proceedings in docket numbers 0127 and 0128, and on May 14, 1990, the Commission issued an Order Suspending Rates and Setting Hearing Schedule, this to be done no less than 60 days after the notices were filed by the MPC.

In time, the Attorney General made his peace with MPC and when the Commission convened for hearing on June 6, 1990, the power company offered a stipulation joined by the Attorney General and the Commission staff, the bottom line of which was a collective opinion that the rates MPC proposed were just and reasonable.[1] The hearing went forward with MPC offering, in addition to the stipulation, the testimony of its comptroller and numerous exhibits. Contestants GMC, Peavey and Legal Services cross-examined but offered no proof of their own. On June 22, 1990, the Commission entered its unanimous order, making extensive findings and approving the rate proposed in No. 90-UN-0128, dismissing No. 90-UN-0127, and lifting its suspension of those rates and finally providing, "The rates shall be effective with respect to service rendered from and after the date of this order."

GMC, Peavey and Legal Services now appeal to this Court.

*798 III.

Our scope of review of orders of the Public Service Commission is important and as limited as it is familiar. We begin with the premise that the Commission "is an arm of the legislature." State ex rel. Pittman v. Mississippi Public Service Commission, 538 So.2d 387, 394 (Miss. 1989); Mississippi Public Service Commission v. South Central Bell Telephone Co., 464 So.2d 1133, 1134 (Miss. 1984) (citing cases). As a corollary, we have long accepted that "the rate-making function is legislative in character." Pittman, 538 So.2d at 394; South Hinds Water Co. v. Mississippi Public Service Commission, 422 So.2d 275, 281 (Miss. 1982); Mississippi Public Service Commission v. Home Telephone Co., 236 Miss. 444, 461, 110 So.2d 618, 626 (1959). The Commission acts on legislative facts and proceeds in a manner like unto a legislature.

By law we are told Commission orders shall not be vacated or set aside either in whole or part, except for errors of law, unless the Court finds that the order of the Commission is not supported by substantial evidence, is contrary to the manifest weight of the evidence, is in excess of the statutory authority or jurisdiction of the Commission, or violates constitutional rights.

Miss. Code Ann. § 77-3-72(4) (Supp. 1990). This is essentially a restatement of generally prevailing limits on judicial review of administrative agency action. See, e.g., Wright v. State Oil & Gas Board, 532 So.2d 567, 570 (Miss. 1988); Melody Manor Convalescent Center v. Mississippi State Department of Health, 546 So.2d 972, 974 (Miss. 1989); Mississippi State Tax Commission v. Mississippi-Alabama State Fair, 222 So.2d 664, 665 (Miss. 1969).

Miss. Code Ann. § 77-3-33(1) (1972) mandates that utility rates should not "exceed that which is just and reasonable." We have read this to say the Commission is not bound to use any particular formula in enforcing this statutory mandate. State ex rel. Pittman v. Mississippi Public Service Commission, 538 So.2d 367, 372 (Miss. 1989); Southern Bell Telephone & Telegraph Co. v. Mississippi Public Service Commission, 237 Miss. 157, 113 So.2d 622, 647-49 (1959). By law, rates must be sufficient to "yield a fair rate of return to the public utility for furnishing service to the public... ." Miss. Code Ann. § 77-3-33(1) (1972) and § 77-3-39(5) (Supp. 1990).

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Bluebook (online)
605 So. 2d 796, 1992 WL 240793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southeast-miss-legal-serv-corp-v-miss-power-co-miss-1992.