The Public Service Commission and Northern States Power Company of Wisconsin (NSP) appeal from an order reversing the commission's decision that Barron Electric Cooperative does not have the right to provide electric service in a residential development in rural Barron County. The commission ruled that Barron's extension of service to a duplex residence in the development violated § 196.495(lm)(b), STATS., and ordered removal of the offending line. Section 196.495 defines two classes of electric utility service extensions according to length. An extension of 500 feet of line or more is a "primary voltage extension"; an extension of less than 500 feet is a "secondary voltage extension." The statute generally prohibits electric utilities from constructing a primary extension to unserved premises to which service is available from another utility through a secondary extension. Under § 196.495(l)(b), the length of an extension is to be measured by "the air line distance between an existing local service distribution line . . . and the nearest point on the principal building or facility to be served by ... [the] extension." 1
The crucial issue is the scope of judicial review of the commission's decision interpreting and applying the provisions of § 196.495, STATS., to the found facts. In this case, as in many other administrative appeals, the ultimate decision is largely driven by the degree of deference we owe, or do not owe, to the agency's decision.
The facts are not in dispute. Charles and Phyllis Cook have owned a farm near the Village of Cameron since 1963, receiving electric service from Barron. In 1976, the Cooks sold off the farm buildings. Gradually, they split up the remaining property and acquired other parcels. While some land remains in use for farming, other portions of the property have been developed for residential use. The area in question is sometimes called Cooksville and referred to by the Cooks as a subdivision — although it has never been formally platted as one. It is an oblong piece of property containing more than forty-five residential lots stretching in a north-south direction from 15th Avenue on the north to County Highway W on the south. The residential lots are separated from the original farm buildings by U.S. Highway 53 on the west. To the east, a cranberry bog runs along the lots.
Both Barron and NSP had pre-existing electric lines in the area. Barron's runs east-west along 15th Avenue on the northern edge of the subdivision, and NSP's tracks Highway W on the south, also in an east-west direction. In July 1994, the Cooks signed a service agreement with Barron to extend its line southward from 15th Avenue to a parcel known as Lot 15, which
On September 15,1994, Dennis Zinsmaster signed an agreement for Barron to extend service to a duplex he planned to construct at the very southern edge of the subdivision — only some 300 feet north of Highway W, where the NSP line was located. Learning of the extension, NSP complained to the commission that Barron had violated § 196.495, STATS., by extending its 15th Avenue line some 5500 feet to the Zinsmaster duplex, which NSP claimed was the "principal building or facility to be served by... [the] extension" within the meaning of § 196.495(l)(b), and which was only 300 feet from NSP's existing line along Highway W. Barron took the position that the "principal building or facility" being served, at least at the outset, was Lot 15 and, eventually, the security light erected somewhere between Lot 15 and the Zinsmaster parcel. Both points were more than 500 feet from either Barron's or NSP's then-existing lines.
The commission agreed with NSP, holding first that the extension closer to the Zinsmaster parcel, the security light, was not the proper point to begin the 500-foot measurement to the duplex because it was not a "principal building or facility" within the meaning of
The purpose of Cooksville is to offer permanent residences to the public. For this reason, the temporary campers at Lot 15 cannot be considered principal buildings or facilities. [The Zinsmaster] [djuplex... must therefore be the principal building or facility served by the B[arron] extension. B[arron]'s line is a primary voltage extension, 5,581 feet long. NSP can serve [the] [djuplex . . . with a secondary voltage extension, approximately 300 [feet] long. According to the 500-foot rule set forth in s. 196.495 (1) and (lm)(b), Stats., NSP is the proper service provider to [the] [d]uplex....
Barron sought judicial review of the commission's decision and its order requiring it to remove the service line. As indicated, the circuit court reversed, concluding first that the commission's decision was entitled to no deference because it was based on the "purpose" of the development rather than on the agency's expertise and past experience. Then, determining that the camper on Lot 15 was a proper starting point for the necessary measurements, the court concluded that because both utilities' existing lines were more than 500 feet from Lot 15, the
I. Standard of Review
Not surprisingly, the parties differ as to the appropriate standard governing our review of the commission's order. 3 The commission and NSP argue for deferential review, while Barron urges us to consider the commission's decision de novo, as the trial court did.
While we begin with the proposition that the interpretation of statutes, and their application to found facts, is a question of law for the courts, not for administrative agencies, an equally important principle of administrative law is that, in recognition of the expertise and experience possessed by agencies, courts will defer to their interpretation of statutes in certain situations. When, and to what degree, deference should be paid to an agency's decision in a given case has been the subject of much discussion in the supreme court and this court over the years. This discussion has culminated in
Harnischfeger Corp. v. LIRC,
According to
Harnischfeger,
courts should grant the highest level of deference — "great deference" — to
At the low end of the scale are cases in which courts owe no deference whatever to the agency's legal conclusions or statutory interpretations — cases where we consider the issues
de novo.
We employ a
de novo
review only "when the issue before the agency is clearly one of first impression, or when [the] agency's position on [the] issue has been so inconsistent as to provide no real guidance."
UFE,
Barron neither challenges the commission's experience or expertise in administering or applying the various provisions of § 196.495, STATS., nor argues
The test is not, however, whether the commission has ruled on the precise — or even substantially similar — facts in prior cases. If it were, given the myriad factual situations to which the provisions of chapter 196, Stats., may apply, deference would indeed be a rarity. Rather, the cases tell us that the key in determining what, if any, deference courts are to pay to an administrative agency's interpretation of a statute is the agency's experience in administering the particular statutory scheme — and that experience must necessarily derive from consideration of a variety of factual situations and circumstances. Indeed, we have recognized in a series of cases that an agency's experience and expertise need not have been exercised on the precise — or even substantially similar — facts in order for its decisions to be entitled to judicial deference. 8
II. Reasonableness of the Commission's Decision
In
Harnischfeger,
the supreme court framed the "reasonableness" test in the negative: "An interpretation is unreasonable if it directly contravenes the words of the statute, it is clearly contrary to legislative intent or it is without [a] rational basis."
Harnischfeger,
An agency's interpretation of a statute is reasonable if it accords with the language of the statute, the statute's legislative history, and the legislative intent; if the interpretation is consistent with the constitution, the statute read as a whole, and the purpose of the statute; and if the interpretation is consistent with judicial analyses of the statute.
Lisney v. LIRC,
Barron does not challenge the factual predicate of the commission's ruling. It argues that the decision is unreasonable because: (1) the commission "ignored" crucial facts; (2) the decision is "contrary to the protection and benefit of the consuming public"; (3) the outcome is inconsistent with the commission's decision in a prior case; and (4) the entire subdivision should be considered "premises . . . already receiving electric service" from Barron within the meaning of § 196.495(lm)(a), Stats., thus prohibiting NSP from extending service to the Zinsmaster duplex — or any other area within the subdivision. 9 Finally, Barron contends that the commission lacks authority to order removal of its line.
Barron asserts that the following crucial facts — which it believes the commission never considered — compel the conclusion that the campers on Lot 15 constitute "premises" within the meaning of the statute: (1) NSP required the Cooks to pay part of the installation costs to the lots in advance and Barron did not; (2) the Zinsmaster duplex was not in existence when Barron agreed to provide service to Lot 15 and
In its reply brief, the commission concedes the reasonableness of the trial court's interpretation of § 196.495, STATS., and acknowledges that it is supported by the record. We agree. We also agree with the commission, however, that its decision — that the destination of Barron's primary extension, and the principal facility to be served, was not the campers but the Zinsmaster duplex — is equally reasonable.
The commission rejected the Lot 15 camper site as a "principal building or facility" because the campers, while they may be considered residential structures in some circumstances, were not so in this instance; they were only "temporary," while the duplex was a permanent residence — as are all other homes to be constructed in the proposed subdivision.
10
The commission points out that, while a second camper was eventually moved there, Lot 15 contained only a single uninhabited camper and some excavating equipment when Barron first extended its service line to the lot.
Because the commission's decision represents a reasonable interpretation and application of the antiduplication statutes to the facts of the case, the authorities cited above require that it be affirmed. 13
The earlier case upon which Barron relies, Vernon Electric Cooperative, PSCW Docket 6080-DR-100 (Oct. 6, 1994), involved a service extension constructed by the Village of Cashton Municipal Electric Utility. The village extended an existing line some 1300 feet to serve a grain elevator in an industrial park it was developing and then, a month or so later, continued the line to provide service to a wastewater lift station it was planning to build within the park. Barron characterizes the commission's ruling in the case as follows:
The PSC ruled that serving the [elevator] through a line extension that was planned to ultimately serve the lift station . . ., while a violation of the statute, was only a technical violation. The PSC declined to order [the village] to remove its line. It said that such an order would be meaningless for the reason that, under the law, Cashton could immediately rebuild the line and connect service from the new line.
We do not see the
Vernon Electric
case as apropos. As the commission's order in the case recites, a utility or cooperative is specifically authorized by § 196.495(3), STATS., to extend service to its own
Under § 227.57(8), Stats., we will reverse an agency decision that is inconsistent with a "prior agency practice" when the inconsistency is not explained to our satisfaction. However, a single decision that is factually distinguishable does not violate the rule.
See City of Brookfield v. Milwaukee Metro. Sewerage Dist.,
As Barron acknowledges, the supreme court has recognized that, among the factors to be considered in interpreting and applying the provisions of § 196.495, Stats., are not only the "[p]ropinquity and economy of
Barron casts the question of "propinquity" as irrelevant, stating that there is "scant difference" between the length of the line either it or NSP would need to serve the entire subdivision. It claims, however, that the $1000 per lot advance deposit requirement of the NSP tariff represents a "huge difference" in the "economy of service," because Barron would not require a similar payment. However, as the commission points out, § 196.495, STATS., does not include the price of electricity to the consumer as a factor to be considered in determining compliance with the antiduplication law. The legislature's primary concern in adopting the statute was, as the supreme court noted in Adams-Marquette, avoidance of duplication of facilities and service.
Again, Barron disagrees. It maintains that, contrary to the antiduplication underpinnings of § 196.495, STATS., the commission's order will encourage duplication of service. It asserts that its line, running through the entire subdivision, will allow connection of new homes as they are built, "in an orderly and efficient manner and without duplication of facilities." According to Barron, the subdivision will develop in a haphazard manner, with buyers selecting lots at random for personal and unpredictable reasons. And, because the need for electric service will, as a result, come "at various unscheduled times and from scattered locations," NSP will have to install new
As we have noted above, the plain purpose of the statute is to avoid duplication of service by mandating that the utility whose existing lines are closest to the customer to be served should be the one to serve the property. We agree with the commission that, under Barron's "entire subdivision" argument, a utility located within 500 feet of the corner of a large subdivision would be entitled to serve residences located thousands of feet away — and within only a few yards of another provider's lines — as long as those distant residences were within the boundaries of the same subdivision. We are satisfied that the commission's order conforms to both the letter and spirit of § 196.495, Stats., and we reject Barron's argument that the entire subdivision should be considered "premises . . . already receiving electric service" so as to bar NSP from serving the Zinsmaster duplex.
Finally, Barron argues that the commission lacked authority to require it to remove its lines or "sell" them to NSP. Having determined that Barron's extension violated § 196.495(lm)(b), STATS., the commission ordered:
1. Within 60 days . . . [Barron] shall either remove its extension entirely or perform all of the following:
a. Disconnect its extension from [Barron]'s distribution line on 15th Avenue and from the northernmost transformer in Cooksville.
b. Remove that part of its extension through the Cranberry Flowage that is constructed overhead, if any. If this portion of the extension is underground it may remain in place, to avoid disturbing the Flowage further.
c. Transfer the remainder of the extension to NSP, at a price the parties agree upon and in a manner that protects the ratepayers in Cooksville from additional installation cost or service interruption.
Barron's argument does not mention § 196.495(5), Stats., which specifically directs the commission to "order the prompt removal" of any primary service extension violating the statute
15
—or § 196.495(6), which expressly states that cooperative associations are "subject to the authority of the commission to enforce the provisions of this section and to issue . . . orders relating to the provisions." In this case, the commission, in consideration of economic and environmental concerns, included an alternative to complete removal of Barron's line, and Barron has not persuaded us that such action is either unreasonable or unauthorized by law.
16
Because we have concluded the
By the Court. — Order reversed and cause remanded with directions.
Notes
The statute reads as follows:
196.495 Avoidance of duplication in electric facilities. (1)
(a) In this section:
2. "Secondary voltage extension" means an extension that is less than 500 feet.
(b) The length of an extension shall be measured as the air line distance between an existing local service distribution line ... and the nearest point on the principal building or facility to be served by... [the] extension....
(1m) No public utility, and no cooperative association . . . may:
(b) Make a primary voltage extension to serve the premises of any person not receiving electric service and to which service is available from the facilities of another public utility or . . . cooperative . . . through a secondary voltage extension, unless the other ... utility or cooperative ... consents ... in writing or unless the commission . . . determines that the service rendered or to be rendered by the other... utility or cooperative... is inadequate ... or that the rates charged for service are unreasonable ....
In so ruling, the commission relied on a prior case in which it had ruled that similar light fixtures did not constitute "principal building[s] or facilities]" within the meaning of § 196.495(l)(b), STATS. See Polk-Burnett Elec. Coop., PSCW Docket 4220-DR-106 (June 29,1995), at 7. The commission also relied on the subsequent codification of Polk-Burnett. Although the decision as well as the codification occurred after the events in this case, the commission reasoned that the same analysis applied.
In appeals from circuit court decisions in administrative review cases, we review the decision of the agency, not the court.
Sterlingworth Condominium Ass'n v. DNR,
The burden of proof to show that the agency's interpretation is unreasonable is on the party seeking to overturn the agency's action; the agency does not have to justify its interpretation.
Harnischfeger Corp. v. LIRC,
While we said in Sterlingworth that we pay "special deference" to the agency's decisions involving matters of "value and policy," the context of our discussion suggests that we were indeed considering the great deference standard where, as indicated above, we will sustain an agency's reasonable interpretation even if another, equally reasonable, interpretation may be posed. We said, for example:
When an agency has particular competence or expertise on an issue, we will sustain its legal conclusions if they are reasonable. We also accord special deference to the agency's decision if it is intertwined with value and policy determinations.
Sterlingworth,
In
UFE,
the court believed due-weight deference was appropriate because, while the agency had "some experience" in interpreting and applying the particular statute, it had not yet "developed the expertise and specialized knowledge necessary to be accorded great weight deference."
UFE Inc. v. LIRC,
The supreme court also said in UFE that — under either the great deference or due-weight standard — the agency should not be reversed if an alternative interpretation is "equally reasonable." The court explained:
Under either due weight or great weight deference, an equally reasonable interpretation of a statute should not be chosen over the agency's interpretation. . . . [T]he important difference between great weight and due weight deference [is that] a more reasonable interpretation overcomes an agency's interpretation under due weight deference, while under great weight deference, a more reasonable interpretation will not overcome an agency's interpretation, as long as the agency's interpretation falls within a range of reasonableness.
Id.
at 287 n.3,
In
Susie Q Fish Co. v. DOR,
In addition to the provisions of § 196.495(lm)(b), STATS., prohibiting primary extensions to unserved customers who could be served by a secondary extension from another utility, § 196.495(lm)(a) bars a utility from extending or rendering service "to the premises of any person already receiving electric service . . . from another public utility or . . . cooperative association."
Indeed, according to the director of operations at Barron, Charles Sandmann, when it constructed the extension to Lot 15, it required a "refundable payment’'' for construction of the extension to Lot 15 "for the reason that the trailers to which service was being extended were not permanent installations."
Mr. Cook affirmatively answered the following question with respect to the second camper: "State whether or not there are now two campers on the lot." While he later testified that his brother was living in one of the campers at the time of the October 1995 hearing, he never stated when this arrangement began. The absence of any ongoing "residency" at the lot is also substantiated by the fact that use of electricity at the site was minimal, with no use in the late winter and spring of 1995.
Sandmann testified that Mr. Cook requested the extension "to supply service to his entire ... plat."
We note in passing that, even if the middle-level due-deference standard were applicable, the result would be the same. Under that standard, courts will not overturn a reasonable agency interpretation "unless ... a
more reasonable
interpretation [is] available."
UFE Inc.,
Barron's "equal protection" and "public interest" arguments are not developed beyond its complaint that the commission failed to follow its prior ruling. In another section of its brief, however, Barron contends that the commission's decision "is contrary to the protection and benefit of the consuming public" because the Cooks would have been able to obtain service from Barron without having to make advance payments of a portion of the installation costs, as is required under NSP's tariffs. Barron also asks — without elaboration — how requiring it to remove its lines can be said to benefit either the "consuming public" or the environment.
First, as we have often said, we do not consider unexplained and undeveloped arguments. M.C.I.,
Inc. v. Elbin,
Section 196.495(5), Stats., states that, upon complaint of any interested party, "[i]f the commission determines that the primary voltage extension was made in violation of this section, it shall order the prompt removal of the primary voltage extension."
Barron also argues that, at minimum, the commission lacks authority to order it to remove or sell that portion of the line providing service to the campers on Lot 15 or the security light, "all of which were connected and service provided 'prior' to
