Utah Cable Television Operators Ass'n v. Public Service Commission

656 P.2d 398, 1982 Utah LEXIS 1077
CourtUtah Supreme Court
DecidedSeptember 30, 1982
Docket17794, 17813
StatusPublished
Cited by7 cases

This text of 656 P.2d 398 (Utah Cable Television Operators Ass'n v. Public Service Commission) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Utah Cable Television Operators Ass'n v. Public Service Commission, 656 P.2d 398, 1982 Utah LEXIS 1077 (Utah 1982).

Opinion

HALL, Chief Justice:

Plaintiffs appeal from an order of defendant Public Service Commission of Utah in which defendant certified to the Federal Communications Commission (FCC) that defendant is authorized to regulate utility pole rental contracts between utility companies and cable television companies in this state. Defendant issued this certification for the purpose of establishing Utah’s jurisdiction, as against that of the FCC, over a case in which a cable television company challenged rates set by such contracts.

In 1978, Congress enacted 47 U.S.C. § 224, granting to the FCC authority to regulate rates, terms and conditions governing the attachment of cable television equipment to existing utility poles. Subsection (c) of that statute contains an exception to the FCC’s jurisdiction, stated as follows:

(1) Nothing in this section shall be construed to apply to, or to give the Commission jurisdiction with respect to rates, terms, and conditions for pole attachments in any case where such matters are regulated by a State.
(2) Each State which regulates the rates, terms, and conditions for pole attachments shall certify to the Commission that—
(A) it regulates such rates, terms, and conditions; and
(B) in so regulating such rates, terms, and conditions, the State has the authority to consider and does consider the interests of the subscribers of cable television services, as well as the interests of the consumers of the utility services.

The applicability of this exception to defendant, which constitutes the sole issue to be decided on this appeal, has not been previously addressed by this Court. In Matter of the investigation of certain

license agreements entered into by Utah Power and Light Company and Mountain States Telephone and Telegraph Company with various cable TV companies, 1 an earlier case involving the validity of cable television pole attachment contracts, defendant found that it had jurisdiction “over all contracts and license agreements between CATV companies operating in Utah and Utah Power & Light Company and Mountain Bell.” However, the order published by defendant in that case does not indicate whether defendant’s jurisdiction over such agreements was challenged therein or whether the effect, if any, of 47 U.S.C. § 224 on defendant’s jurisdiction was discussed. No appeal from that case has been filed with this Court and it appears that defendant has otherwise exercised uncontested jurisdiction over Utah cable television pole attachment contracts until the filing of the present case.

On December 17,1980, Wentronics, Inc., a cable television corporation, filed a complaint with the FCC’s Common Carrier Bureau seeking an adjudication concerning permissible rates for cable television attachments to Utah Power & Light Company (UPL) utility poles in Moab. Wentronics alleged FCC jurisdiction over such rate determinations based on 47 U.S.C. § 224 and corresponding FCC regulations. 2 In answer, UPL denied the FCC’s jurisdiction, claiming that 47 U.S.C. § 224(c) (quoted above), by excluding from FCC jurisdiction cases involving pole attachment contracts subject to state regulation, prevented the FCC from assuming jurisdiction in this case. On this basis, UPL requested a stay of the FCC proceedings in order to allow UPL to petition defendant for an order certifying its own jurisdiction under 47 U.S.C. § 224(c).

Upon the filing of UPL’s petition with defendant, the latter issued the requested certification in the form of a temporary order. Defendant received objections to the proposed certification from three cable television companies, which did not include *400 Wentronics, and from the Utah Cable Television Operators Association, Inc. (UCTOA), plaintiffs herein. The parties submitted the case to defendant on the basis of legal memoranda and defendant then issued a permanent order affirming its own jurisdiction to regulate the rates, terms and conditions of pole attachment contracts. Defendant further certified that in so regulating, it can and does consider the interests of both cable television subscribers and utility-customers, as required by the federal statute. Defendant subsequently mailed copies of its temporary and permanent orders to the FCC.

UCTOA and the cable television companies appeal from defendant’s order. 3 UPL, although not a party to the appeal, received permission from this Court to file a responsive brief herein and to participate in oral arguments.

In contesting defendant’s order and certification of jurisdiction, plaintiffs argue that defendant holds insufficient statutory authority over utility pole attachment contracts to meet the criteria of the 47 U.S.C. § 224(c) exception. Section 47 U.S.C. § 224(c), by its terms, applies to cases where a statute “regulates the rates, terms and conditions for pole attachments.” Plaintiffs point out that no Utah statute uses the precise terminology “rates, terms and conditions” in defining defendant’s authority over such contracts.

In enacting the statute in question, Congress recognized the “inherent power of a State” to regulate pole attachment contracts and intended to provide a forum for litigation concerning such contracts only in cases where no state forum was available. During debate preceding the enactment of the statute, one of its proponents explained:

First it has been said that the bill would take away the inherent power of the States to regulate CATV pole attachments. This is decidedly not the case. No State which regulates pole attachments on the effective date of this bill would lose jurisdiction. For a State which is not so regulating upon the effective date, its unexercised powers would be displaced only to the extent necessary to give cable television systems in that State a forum to take their complaints regarding unjust or unreasonable pole attachment arrangements. Should that State at any time provide that forum, the F.C.C. would drop out of the picture. Furthermore, this bill contains no restrictions nor imposes any guidelines as to the manner by which a State may regulate .... Thus, the inherent power of a State to regulate CATV pole attachments in a manner of its own choosing is preserved. 4 [Emphasis added.]

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656 P.2d 398, 1982 Utah LEXIS 1077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utah-cable-television-operators-assn-v-public-service-commission-utah-1982.