Valley Rural Electric Cooperative, Inc. v. Pennsylvania Public Utility Commission

598 A.2d 627, 143 Pa. Commw. 131, 1991 Pa. Commw. LEXIS 566
CourtCommonwealth Court of Pennsylvania
DecidedOctober 21, 1991
DocketNo. 1696 C.D. 1990
StatusPublished
Cited by2 cases

This text of 598 A.2d 627 (Valley Rural Electric Cooperative, Inc. v. Pennsylvania Public Utility Commission) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valley Rural Electric Cooperative, Inc. v. Pennsylvania Public Utility Commission, 598 A.2d 627, 143 Pa. Commw. 131, 1991 Pa. Commw. LEXIS 566 (Pa. Ct. App. 1991).

Opinion

SILVESTRI, Senior Judge.

Valley Rural Electric Cooperative, Inc. (Valley) petitions for review of the Opinion and Order of the Pennsylvania Public Utility Commission (PUC), entered July 16, 1990, which denied Valley’s Exceptions to the Initial Decision filed by an Administrative Law Judge.

Pennsylvania Electric Company, a.k.a. Penelec, is a Pennsylvania public utility corporation. Valley is an electric cooperative corporation; both Penelec and Valley furnish retail electric service, inter alia, within portions of Metal Township, Franklin County. Since before July 30, 1975, Penelec has owned a 23 KV distribution line, known as the KRA line, which, as herein relevant, runs in a north-south direction from the Spring Run switching station to Valley’s Metal Substation. The issue in this case involves the determination of which electric supplier is entitled to furnish service from a 5.14 mile long portion of the KRA line which runs from Valley’s Metal Substation north to Penelec’s Fannettsburg Substation (the Fannettsburg Substation is located between the Metal Substation and the Spring Run switching station). The following Figure 1 depicts the KRA line as relevant in this matter.

[134]*134[[Image here]]

On June 9, 1959, Valley and Penelec entered into a contract by which Valley was to receive wholesale service directly from Penelec. In the early 1960s, Valley began to experience an increase in load demand. The Metal Substation was constructed to meet these demands. Penelec prepared a report, dated April 3, 1964, which projected future load growth and projected the means for adequate response to the growth. The report proposed the construction of the portion of the KRA line from the Spring Run switching station south to the Metal Substation (at that time, the portion of the line which runs east-west through the Spring Run switching station and the portion which runs north from the switching station were already in existence). Construction was begun on the KRA line facilities from the [135]*135switching station south to the Fannettsburg Substation on July 6,1964 and from the Fannettsburg Substation south to the Metal Substation on July 24, 1964. Those portions of the line were first energized on October 30, 1964 and November 4, 1964 respectively. On November 25,1964, the 1959 contract between Valley and Penelec was amended by adding a new so-called “delivery point” or “metering point” at the Metal Substation and providing for Penelec to supply wholesale service to Valley at that location.

As relevant, the customers in the district are the Path Valley Estates Subdivision (including the residences of Jesse and Katie Bawell and Randy and Camille Harr), the United Telephone Company and the residences of Robert Coons, Kirk and Bobbi Sue Umbrell, James and Ann Shindledecker, and Glenn and Mabel LeBlanc, all of whom are located in an unincorporated area of Metal Township. Penelec furnishes the electric service to the United Telephone Company and to the Coons residence; Valley furnishes electric service to the residences of the Umbrells, Shindledeckers, LeBlancs, and to the Bawells and Harrs in the Path Valley Estates Subdivision. Valley has notified Penelec of its intention to furnish electric service to all of the lots in the Path Valley Estates Subdivision. Penelec has never given its consent to Valley’s furnishing of electric service to any of the lots in the subdivision, nor to the aforementioned customers of Valley.

The determination of which electric supplier is entitled to furnish electric service to a consumer is controlled by the provisions of the Retail Electric Supplier Unincorporated Area Certified Territory Act (Act 57), which was in effect at the time of these proceedings.1 Section 5(b) of Act 57, 15 P.S. § 3281(b) provides:

(b) Except as provided in subsections (c) and (e) any new electric-consuming facility located in an unincorporat[136]*136ed area which has not as yet been included in a map issued by the commission, pursuant to section 4(c), or certified, pursuant to section 4(d), shall be furnished retail electric service by the retail electric supplier which has an existing distribution line in closer proximity to such electric-consuming facility than is the nearest existing distribution line of any other retail electric supplier. Any disputes under this subsection (b) shall be resolved by the commission.

On or about April 17,1989, Penelec filed a Complaint before the PUC against Valley pursuant to Act 57. The Complaint alleged that the KRA line is an “existing distribution line” within the meaning of Section 2 of Act 57, 15 P.S. § 3278,2 and, further, that the KRA line is in closer proximity than is any of Valley’s “existing distribution lines” to the residences of the Umbrells, Shindledeckers, LeBlancs, and all of the lots in the Path Valley Estates Subdivision. All of the foregoing constitute new electric-consuming facilities within the meaning of Section 5(b) of Act 57, 15 P.S. §§ 3281(b), in that none of them were in existence as of July 30, 1975, the effective date of Act 57. Penelec sought a declaratory order that it is the only appropriate supplier of retail electric service to the residences of the Umbrells, Shindledeckers and LeBlancs and to all of the lots in the Path Valley Estates Subdivision and directing Valley to cease and desist from furnishing retail electric service to those consumers.

In its Answer and New Matter, Valley alleged that the KRA line is actually a number of lines and that the subject 5.14 mile long portion of the line is not an “existing distribution line” because Penelec used it to furnish wholesale electric energy to Valley as of July 30, 1975, thus it is not being used for “retail electric service” as that term is [137]*137defined in Section 2 of Act 57, 15 P.S. § 3278,3 and is not determinative of retail service territory rights under Act 57. Valley further alleged that its own “existing distribution lines” are in closer proximity to the subject new electric-consuming facilities than any Penelec “existing distribution line,” giving Valley the right to furnish electric service to them. By New Matter, Valley alleged that at some time subsequent to July 30, 1975, Penelec began furnishing, and continues to furnish, electric service to the United Telephone Company, that Penelec never advised Valley of its intention to provide said service to the United Telephone Company and that Valley never gave its consent to Penelec to do so. Valley alleged that its “existing distribution lines” are in closer proximity to the United Telephone Company than those of Penelec. Valley sought an order dismissing Penelec’s Complaint and directing Penelec to cease and desist from furnishing electric service to the United Telephone Company.

In its Reply to Valley’s New Matter, Penelec alleged that its furnishing of electric service to the United Telephone Company is lawful under Act 57 because its KRA line is an “existing distribution line” pursuant to Act 57 and is in closer proximity to that consumer than is any of Valley’s “existing distribution lines.”

A hearing was held before an Administrative Law Judge (AU) on October 5, 1989, during which three witnesses for each party testified, various exhibits were admitted intp evidence and a written Stipulation of Facts containing 35 stipulations, as well as two oral stipulations, were entered into the record. Both parties also filed briefs. On March 14,1990, the AU issued an Initial Decision.

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Bluebook (online)
598 A.2d 627, 143 Pa. Commw. 131, 1991 Pa. Commw. LEXIS 566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valley-rural-electric-cooperative-inc-v-pennsylvania-public-utility-pacommwct-1991.