Stafford Service Corp. v. State Corp. Commission

260 S.E.2d 226, 220 Va. 559, 1979 Va. LEXIS 297
CourtSupreme Court of Virginia
DecidedNovember 21, 1979
DocketRecord No. 790687; Record No. 790688
StatusPublished
Cited by6 cases

This text of 260 S.E.2d 226 (Stafford Service Corp. v. State Corp. Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stafford Service Corp. v. State Corp. Commission, 260 S.E.2d 226, 220 Va. 559, 1979 Va. LEXIS 297 (Va. 1979).

Opinion

COCHRAN, J.,

delivered the opinion of the Court.

Stafford Service Corporation and Stafford Water Corporation (collectively, the Corporations) have appealed the order entered February 5, 1979, by the State Corporation Commission denying their applications for certificates of public convenience and necessity to provide sewerage and water service to a housing development in Stafford County.

On June 15, 1978, the Corporations filed with the Commission applications for approval of contracts for the conveyance to them by Staffordboro Enterprises (Staffordboro), a partnership, of sewerage and water distribution facilities. Thereafter, the Corporations filed their applications for certificates of convenience and necessity, in which they included proposed tariffs showing rates, rules and regulations. The applications were consolidated for public hearing held on January 31, 1979. Thirty-five homeowners in the housing development, represented by counsel, participated in the hearing as protestants, but Stafford County and the Aquia Sanitary District, which had previously intervened as protestants, withdrew their opposition before the hearing was commenced. There is no substantial conflict in the evidence.

Staffordboro initially developed a tract of approximately 400 acres. In conjunction with a corporation which subsequently went into bankruptcy, Staffordboro constructed a townhouse development of 67 [561]*561units and a mobile trailer park, and also built a sewage disposal plant which the Sanitary District purchased. At time of hearing, the Sanitary District owned that plant, a reservoir and filtration plant, and all other necessary sewage treatment and water facilities used to serve the development except for distribution lines and a water storage tank owned by Staffordboro. The Corporations had been chartered in 1964 for the purpose of supplying sewerage and water services to the development, but they had provided no public utility service since 1970. Sewerage and water service was being provided by the Sanitary District through the Staffordboro distribution lines, but no charges for service were being collected by Staffordboro. Staffordboro had been advised to convey its lines to the Corporations so that the Corporations could apply for certificates of public convenience and necessity enabling them to make appropriate charges for service. The recorded plat of the development showed that easements for the water and sewerage lines had been dedicated to the public use.

B. Calvin Burns, who was one of two partners of Staffordboro, and was also the president and one of three stockholders of the Corporations, testified for the applicants. He conceded that Staffordboro owned only the water and sewerage distribution lines and the water storage tank within the development, and that the Sanitary District supplied service through the Staffordboro lines, but he asserted that if the applications were denied by the Commission, Staffordboro would have no choice but to terminate water and sewerage service by denying the Sanitary District the use of the lines.

N. C. Sharp, County Administrator of Stafford County, testifying as a witness for the Commission, stated that the Sanitary District owned all the necessary sewerage and water facilities except the distribution lines in the subdivision. He conceded that Stafford County was “not prepared financially” at that time to acquire the lines, but he asserted that the County was moving towards ownership of all sewerage and water facilities, and that the Sanitary District was willing to continue service to the development. Efforts to settle the controversy with Staffordboro in respect to service to the subdivision had been unsuccessful.

At the conclusion of Sharp’s testimony, the Commission ruled that the applications must be denied under the provisions of Code § 56-265.3

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Bluebook (online)
260 S.E.2d 226, 220 Va. 559, 1979 Va. LEXIS 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stafford-service-corp-v-state-corp-commission-va-1979.