City of Torrington, a Wyoming municipal corporation v. Leroy P. Smith, Z & W Mill Inc., Russell Zimmer, Torrington Conservative Citizens, a Wyoming corporation, and Wyoming Public Service Commission
2016 WY 126
| Wyo. | 2016Background
- The City of Torrington owns/operates an electric utility serving ~3,500 customers; ~23% live outside city limits.
- The City sought declaratory relief that it may set electric rates for customers outside its corporate limits and may transfer utility revenues to other municipal budgets.
- A Citizens Group challenged, arguing no justiciable controversy and that the Wyoming Public Service Commission (PSC) has rate-setting authority for out-of-city customers.
- The district court joined the PSC, held the PSC has jurisdiction to set rates for municipal service provided outside city limits, and declined to decide the revenue-transfer question as non-justiciable.
- The City appealed the rate and declaratory judgment rulings to the Wyoming Supreme Court.
Issues
| Issue | Plaintiff's Argument (City) | Defendant's Argument (PSC/Citizens Group) | Held |
|---|---|---|---|
| Whether PSC has exclusive jurisdiction to set rates for municipally‑provided electricity to customers outside city limits | City: Title 15 grants cities authority to contract to supply electricity and to "provide for the rates" charged, so City may set rates for all its customers | PSC: Title 37 grants PSC "general and exclusive" regulatory power over public utilities, except services limited to within municipal limits | Held: PSC has exclusive authority to set rates for customers outside municipal limits; City statutes do not override PSC authority |
| Whether there is a justiciable controversy over City’s use/transfers of electric utility revenues | City: Prior statements by Citizens Group and statutory ambiguity create a live controversy requiring judicial declaration | Citizens Group: No concrete injury or adversarial dispute justifying declaratory relief | Held: No justiciable controversy; declaratory relief on revenue transfers would be advisory and was properly denied |
Key Cases Cited
- PacifiCorp v. Pub. Serv. Comm'n of Wyo., 103 P.3d 862 (Wyo. 2004) (PSC must prioritize public interest and ensure just and reasonable utility rates)
- Tri-County Elec. Ass'n, Inc. v. City of Gillette, 584 P.2d 995 (Wyo. 1978) (jurisdiction to regulate service areas outside municipal limits vested in PSC)
- Coffinberry v. Town of Thermopolis, 183 P.3d 1136 (Wyo. 2008) (municipal powers include those fairly and necessarily implied by statute)
- William F. West Ranch, LLC v. Tyrrell, 206 P.3d 722 (Wyo. 2009) (declaratory relief requires a concrete, remediable injury under Brimmer factors)
- Best v. Best, 357 P.3d 1149 (Wyo. 2015) (statutory interpretation is a question of law reviewed de novo)