Justia Utilities Law Opinion Summaries

Daufuskie Island Utility Company, Inc. (DIUC) filed an application with the Public Service Commission for a rate increase for the water and sewer service it provides to residents of Daufuskie Island in Beaufort County. During a hearing on the merits of the application, the commission approved a purported settlement agreement between the Office of Regulatory Staff (ORS) and three property owners' associations: Haig Point Club and Community Association Inc., Melrose Property Owner's Association, Inc., and Bloody Point Property Owner's Association. DIUC appealed, and the South Carolina Supreme Court reversed, finding the agreement "was not a true settlement" because DIUC did not agree to it. The case was thereafter remanded the case to the commission for a new hearing on all issues. On remand, the commission held a second hearing on the merits and issued a second order. DIUC appealed the second order, arguing the commission erred in disallowing certain rate case expenses and refusing to include items of capital in DIUC's rate base. DIUC argued ORS and the commission applied a higher standard of scrutiny on remand in retaliation against DIUC for successfully seeking reversal of the commission's initial order. At oral argument on this second appeal, when pressed by the Court to respond to DIUC's "retaliation" argument, appellate counsel for ORS conceded a heightened standard had been employed. In reversing the Commission, the Supreme Court determined the arbitrary, higher standard of scrutiny affected substantial rights of DIUC. The commission's findings of fact and conclusions of law therefore had to be reversed. The matter was remanded again for a new hearing. View "Daufuskie Island v. SC Office of Regulatory Staff" on Justia Law

Petitioners, three rural telephone companies, challenged the Commissions' decision establishing petitioners' "cost of capital," which reflects a company's cost of generating or obtaining capital investment in assets that provide utility services to customers. Petitioners alleged that the Commission failed to adequately consider certain risks that exist for investing in small, rural telephone companies, and therefore the cost of capital was set at an unreasonably low level, resulting in a confiscatory rate of return.The Court of Appeal affirmed the trial court's judgment, holding that petitioners failed to meet their burden of demonstrating that the Commission's cost of capital determination was arbitrary, capricious, lacking in any evidentiary support, or that it otherwise fell short of constitutional standards regarding a reasonable rate of return. View "Ponderosa Telephone Co. v. California Public Utilities Commission" on Justia Law

After years of investigation, the San Diego Regional Water Quality Control Board (Regional Board), issued a cleanup and abatement order (CAO) to San Diego Gas & Electric Company (SDG&E) and several other entities, in connection with a power plant’s operations that discharged waste into the San Diego Bay. The Regional Board found that SDG&E caused or permitted waste to be discharged into the Bay and thereby created, or threatened to create, pollution and nuisance conditions. SDG&E contested its designation as a responsible "person" under Water Code section 13304 (a), and petitioned for a writ of mandate to have the CAO vacated. The superior court denied the writ. SDG&E argued then, as it did before the Court of Appeal, that shipyard companies comparatively discharged greater amounts of pollutants into the Bay and that two appellate opinions required application of the "substantial factor" causation test to determine whether SDG&E created or threatened to create a condition of pollution or nuisance. The Court of Appeal found it was undisputed that SDG&E directly discharged and thus "caused or permitted" waste to enter the Bay, distinguishing the aforementioned appellate cases. Further, the Regional Board adequately demonstrated that the waste discharged by SDG&E created, or threatened to create, a condition of pollution or nuisance. Accordingly, the Court affirmed the judgment. View "San Diego Gas & Electric Co. v. San Diego Regional Water etc." on Justia Law

Uber is a “transportation networking company” (TNC) regulated by the California Public Utility Commission (CPUC). All TNCs must submit annual reports to the CPUC, containing specified data, and file an annual accessibility plan. After receiving numerous complaints from the San Francisco Municipal Transportation Agency regarding illegal parking, traffic congestion, and safety hazards caused by TNC vehicles, the city attorney opened an investigation into possible violations of state and municipal law by TNCs, including Uber. The city attorney issued the administrative subpoenas to Uber, including a request for: Annual Reports filed by Uber with CPUC, 2013-2017 and all of the raw data supporting those reports on providing accessible vehicles, driver violations/suspensions, number of drivers completing training courses, updates on accessibility plans, report on hours/miles logged by drivers, and providing service by zip code. Uber refused to comply, arguing that the CPUC had primary jurisdiction. The court of appeal affirmed a trial court order that Uber produce the reports. It was within the city attorney’s investigative powers to issue the administrative subpoenas. Public Utilities Code section 1759 did not deprive the trial court of jurisdiction and the primary jurisdiction doctrine did not apply to postpone enforcement of the administrative subpoenas. View "City and County of San Francisco v. Uber Technologies, Inc." on Justia Law

The Supreme Court reversed in part the judgment of the court of appeals reversing the judgment of the district court affirming the conclusions of the Public Utilities Commission (PUC) that CPS Energy violated both Tex. Util. Code 54.204(c)'s uniform-charge requirement and section 54.204(b)'s prohibition of discrimination, holding that the PUC could reasonably have concluded, as it did, that CPS Energy violated the plain terms of section 54.204(b).The PUC concluded that a utility that invoices different telecommunications providers a uniform rate nevertheless violates section 54.204(b) if it fails to take timely action to ensure that all pole attachers actually pay the uniform rate it invoices. The court of appeals reversed, holding that if a telecommunications provider does not pay the rate the utility uniformly charges, any discriminatory effect is the telecommunication provider's fault, not the utility's. The Supreme Court reversed, holding that the PUC's finding that CPS Energy failed to make any serious or meaningful effort to collect from AT&T Texas was supported by substantial evidence, and the effect on Time Warner Cable was clearly discriminatory. View "Time Warner Cable Texas LLC v. CPS Energy" on Justia Law

The issue before the Pennsylvania Supreme Court in this case concerned whether counties could advance common law claims seeking legal redress against telecommunications companies for alleged deficiencies in their administration of fees associated with 911 emergency communication services. The Supreme Court concluded the Legislature balanced counties’ interests against those of other co-participants enlisted under the 911 Act and provided sufficient indicia evincing its intention to centralize enforcement authority in the relevant state agency. "Although we realize that the County may have been disadvantaged by PEMA’s apparent failure to act, this unfortunate circumstance does not control the judicial construction of a legislative enactment." Thus, the Court reversed the Commonwealth Court, and reinstated the order of the court of common pleas. View "Co. of Butler v. Centurylink, et al.." on Justia Law

The Supreme Court reversed the judgment of the trial court granting summary judgment in favor of Defendant, Southeastern Connecticut Water Authority, on the basis of a rule (Rule) promulgated by Defendant immunizing itself from liability for failures or deficiencies in its supply of water to customers, holding that there was no explicit authorization in the special act creating Defendant that authorized Defendant to promulgate such a rule.Defendant was created in 1967 by a special act of the General Assembly. On the basis of the authority purportedly granted to it by a provision of the special act, Defendant adopted the Rule at issue in this case. Plaintiff later commenced this action seeking damages on the basis of a loss of water service at a hotel operated by Plaintiff. Defendant moved for summary judgment, arguing (1) the Rule immunized it from liability, and (2) the claim was barred by the common-law economic loss doctrine. The trial court rendered summary judgment for Defendant based on the Rule. The Supreme Court reversed and remanded the case, holding that Defendant lacked authority to promulgate a rule that immunized it from liability for disruptions to water service. View "Raspberry Junction Holding, LLC v. Southeastern Connecticut Water Authority" on Justia Law

This appeal focused on circumstances in which local water and irrigation districts were entitled to subvention for unfunded state mandates. The Commission on State Mandates (Commission). The Commission denied consolidated test claims for subvention by appellants Paradise Irrigation District (Paradise), South Feather Water & Power Agency (South Feather), Richvale Irrigation District (Richvale), Biggs-West Gridley Water District (Biggs), Oakdale Irrigation District (Oakdale), and Glenn-Colusa Irrigation District (Glenn-Colusa). The Commission determined the Water and Irrigation Districts had sufficient legal authority to levy fees to pay for any water service improvements mandated by the Water Conservation Act of 2009. The trial court agreed and denied a petition for writ of mandate brought by the Water and Irrigation Districts. On appeal, the Water and Irrigation Districts presented a question left open by the Court of Appeal’s decision in Connell v. Superior Court, 59 Cal.App.4th 382 (1997). Based on the statutory language, Connell held local water districts were precluded from subvention for state mandates to increase water purity levels insofar as the water districts have legal authority to recover the costs of the state-mandated program. In so holding, Connell rejected an argument by the Santa Margarita Water District and three other water districts that they did not have the “practical ability in light of surrounding economic circumstances.” This appeal considered whether the passage of Proposition 218 changed the authority of water and irrigation districts to recover costs from their ratepayers so that unfunded state mandates for water service had to be reimbursed by the state. The Court of Appeal affirmed, finding the Water and Irrigation Districts possessed statutory authority to collect fees necessary to comply with the Water Conservation Act. Thus, under Government Code section 17556(d), subvention was not available to the Water and Irrigation Districts. The Commission properly denied the reimbursement claims at issue in this case because the Water and Irrigation Districts continued to have legal authority to levy fees even if subject to majority protest of water and irrigation district customers. View "Paradise Irrigation Dist. v. Commission on State Mandates" on Justia Law

Cobb and Gwinnett Counties, Georgia, sued telephone companies for their failure to collect and remit to the Counties a charge imposed on subscribers to offset the cost of 911 services. The telephone companies raised various defenses to the Counties’ suits, including that the 911 charge was a tax that the Counties were not allowed to collect by a lawsuit like this one. The trial court rejected that argument and allowed the cases to proceed, but the Court of Appeals vacated that aspect of the trial court’s ruling and remanded because further development of the record was needed to determine whether the charge was a tax. The Georgia Supreme Court concluded the charge was indeed a tax regardless of more factual development, and the Counties lacked legal authority to collect that tax in this lawsuit. View "BellSouth Telecommunications, LLC v. Cobb County et al." on Justia Law

The Supreme Court affirmed the report and order of the Public Utilities Commission (PUC) denying the Town of Portsmouth’s request for a discounted rate for ferry service from the Town of Bristol to Prudence Island for municipal vehicles and passengers performing essential government services, holding that the PUC did not err in denying the Town’s request for a discounted rate.On appeal, the Town argued that the PUC’s express statutory authority and implied powers grant it the right to order the Town’s requested rates without needing the permission of the entity it regulates, i.e., A&R Marine Corp., d/b/a Prudence & Bay Islands Transport. The Supreme Court disagreed, holding (1) before the PUC would have been legally authorized to act upon a discounted ferry rate for the Town, it would have been necessary, pursuant to R.I. Gen. Laws 39-2-5(2), for A&R Marine to propose such a discounted rate; and (2) because A&R never made such a proposal, the PUC’s report and order is affirmed. View "In re A&R Marine Corp." on Justia Law