Markley v. Department of Public Utility Control
23 A.3d 668
| Conn. | 2011Background
- Joe Markley, an electric utility ratepayer, sues the Department of Public Utility Control and its chairman over a financing order issued under P.A. 10-179 to fund deficits.
- The financing order requires ratepayers of CL& P and United Illuminating to pay charges, with proceeds directed to the general fund and bond financing.
- Markley alleges the order is effectively a tax, issued beyond statutory authority and violative of constitutional rights.
- The trial court dismissed on exhaustion and sovereign immunity grounds, sua sponte finding lack of subject matter jurisdiction.
- P.A. 10-179 authorizes economic recovery bonds and assigns charges to ratepayers; order implements these charges and equitable allocations between distributors.
- The order contemplates a true-up period and potential adjustments through 2018, with service fees to cover administrative costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the order violates equal protection. | Markley asserts an equal protection violation by taxing CL& P ratepayers differently and by unequal burden distribution. | Defendants contend classification is rational and lacks constitutional defect; no essential rights are implicated. | No substantial equal protection claim; rational-basis review applies and burden is permissible. |
| Whether the defendants exceeded statutory authority under third sovereign-immunity exception. | Original statutory claims claimed the order exceeded authority and taxed ratepayers improperly. | P.A. 10-179 provides clear statutory authority; any later theories are abandoned or lack substantial factual support. | Original statutory claims barred; new theories not adequately developed; sovereign immunity bars the action. |
| Whether exhaustion of administrative remedies was proper grounds for dismissal. | Plaintiff argued exhaustion was or could be futile under the statute. | Exhaustion arguments were insufficient to shield from sovereign-immunity dismissal. | Court did not rely on exhaustion; sovereign immunity forecloses the action. |
Key Cases Cited
- Gold v. Rowland, 296 Conn. 186 (2010) (sovereign immunity and injunctive relief standards applied to unconstitutional acts)
- Columbia Air Servs., Inc. v. Dept. of Transportation, 293 Conn. 342 (2009) (three exceptions to sovereign immunity; review of complaints on pretrial motions)
- Keane v. Fischetti, 300 Conn. 395 (2011) (rational-basis review in equal protection challenges not involving fundamental rights)
- Batte-Holmgren v. Commissioner of Public Health, 281 Conn. 277 (2007) (equal protection challenges in taxation contexts; similarity of situated groups)
- United Illuminating Co. v. New Haven, 179 Conn. 627 (1980) (taxation of one class versus another permissible under rational basis)
- San Antonio Indep. Sch. Dist. v. Rodriguez, 411 U.S. 1 (1973) (tax classifications attract rational-basis deference)
- Longley v. State Empl. Retirement Comm., 284 Conn. 149 (2007) (specific vs general statutes control when in conflict)
- Pamela B. v. Ment, 244 Conn. 296 (1998) (sovereign immunity discussion in context of injunctive relief)
