Waltman v. Pennsylvania Public Utility Commission

596 A.2d 1221, 142 Pa. Commw. 44
CourtCommonwealth Court of Pennsylvania
DecidedJanuary 7, 1992
Docket1490 C.D. 1990
StatusPublished
Cited by12 cases

This text of 596 A.2d 1221 (Waltman 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
Waltman v. Pennsylvania Public Utility Commission, 596 A.2d 1221, 142 Pa. Commw. 44 (Pa. Ct. App. 1992).

Opinions

CRAIG, President Judge.

Petitioners Vernon F. Waltman, et al., have appealed to this court from an order of the Pennsylvania Public Utility Commission granting the applications of WTG-Central and WTG-East for certificates of public convenience. We affirm the commission’s decision.

WTG-Central and WTG-East filed separate applications with the Pennsylvania Public Utility Commission for certificates of public convenience and necessity to offer intrastate telecommunications services in Pennsylvania.1 On August 25, 1989, the petitioners filed protests to the applications with the commission. On June 18, 1990, the commission [48]*48granted the applicants certificates of public convenience and necessity.

On July 17, 1990, the petitioners filed a petition for review with this court. The applicants and commission filed a joint motion to quash the petition for review or, in the alternative, to strike certain objections raised in the petition. On November 26, 1990, Judge Kelley of this court denied the motion to quash and granted the motion to strike in part.

Judge Kelley had concluded that several of the objections concerned an issue of whether the commission had jurisdiction over “resellers.” 2 However, the commission here has treated applicants and their parent, Williams Telecommunications Group, Inc., as a group constituting a facilities-based carrier.

Our scope of review in matters involving certificates of public convenience is limited to a determination of whether the commission committed an error of law, whether substantial evidence exists to support its findings or whether constitutional violations were committed. Limelight Limousine, Inc. v. Pennsylvania Public Utility Commission, 131 Pa.Commonwealth Ct. 522, 570 A.2d 1378 (1990). See also, Society Hill Carriage Co. v. Pennsylvania Public Utility Commission, 135 Pa.Commonwealth Ct. 538, 581 A.2d 702 (1990).

1.

The petitioners argue that the commission committed an error of law by misapplying the legal standard for determining whether the applicants’ services are for the public and hence concluding that the applicants are public utilities subject to the commission’s jurisdiction.

According to the petitioners, because the applicants’ utility services will be used primarily by individual commercial [49]*49entities and other common carriers, the applicants’ offer to serve does not constitute an offer to serve the public at large and therefore, the service does not fall within the definition of public utility.

The relevant starting point for analysis is section 102 of the Code, 66 Pa.C.S. § 102, which defines “public utilities” as including

any person or corporations [sic] now or hereafter owning or operating in this Commonwealth equipment or facilities for ... [c]onveying or transmitting messages or communications by telephone or telegraph ... for the public for compensation, (emphasis added.)

According to our Supreme Court, the test for determining whether utility services are being offered “for the public” is

whether or not such person holds himself out, expressly or impliedly, as engaged in the business of supplying his product or service to the public, as a class, or to any limited portion of it, as contradistinguished from holding himself out as serving or ready to serve only particular individuals.

Drexelbrook v. Pennsylvania Public Utility Commission, 418 Pa. 430, 435-36, 212 A.2d 237, 239 (1965) (emphasis added).

The commission reasoned that there are two factors which are relevant in determining whether a utility service is for the public. These include: (1) whether the service at issue is merely incidental to the service provider’s non-utility business relationship with its customers, e.g., Drexelbrook, supra (a landlord supplying utility service only to his tenants is not a public utility); and (2) whether the utility facility was designed and constructed only to serve specific individuals so that the resulting service is not properly considered to be for the public, e.g., Borough of Ambridge v. Pennsylvania Public Service Commission, 108 Pa.Superior Ct. 298, 165 A. 47 (1933).

[50]*50Furthermore, the private or public character of a business does not depend upon the number of persons who actually use the service; rather, the proper characterization rests upon whether or not the service is available to all members of the public who may require the service. C.E. Dunmire Gas Co., Inc. v. Pennsylvania Public Utility Commission, 50 Pa.Commonwealth Ct. 600, 413 A.2d 473 (1980). The fact that only a limited number of persons may have occasion to use a utility's service does not make it a private undertaking if the general public has a right to subscribe to such a service. Masgai v. Pennsylvania Public Service Commission, 124 Pa.Superior Ct. 370, 188 A. 599 (1936); Borough of Ambridge, supra.

The petitioners argue that the commission erred in considering the “design and construction” of the applicants’ facilities and that the commission should consider only the actual service the applicants provide to determine whether it is for the public.

Although the nature of the actual service, rather than the design or construction characteristics of the facilities, is the pivotal element that determines the provider’s status as private or public, Borough of Ambridge, id., the applicant has not yet started providing intrastate service in Pennsylvania. Hence, the commission, in accordance with Borough of Ambridge, looked to the design and construction of the applicant’s facilities to determine the character of the service and whether the service will be for the public or only for a group of particular individuals.

The commission properly considered the factors described above in addressing the controlling question of whether the applicants’ service will be offered to the public and not held out to particular individuals.

The commission concluded that:

It is true that applicants’ services' are only economically feasible to entities which desire large volumes of business. However, it is clear that this is not a determinative factor in reviewing the issue of whether the service is to the public____ [51]*51In view of the relevant case law and our present regulatory policies, it is clear that applicants’ proposed service is to the public or a limited portion thereof---- Most importantly, the applicants’ services will be offered to the public and are not held out only to particular individuals. Accordingly, applicants’ proposed services fall within jurisdictional limits of 66 Pa.C.S. § 102.

Opinion dated June 18, 1990, at 15 (emphasis added).

The commission applied the proper test, as formulated by our Supreme Court in Drexelbrook,

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Bluebook (online)
596 A.2d 1221, 142 Pa. Commw. 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waltman-v-pennsylvania-public-utility-commission-pacommwct-1992.