*1 against original cause of action Micrea’s L. DuCroz. Plains and Charles
Coastal action, remaining
As to the cause are re- of the courts below
judgments is here rendered judgment
versed and Micrea, Inc., nothing ac- take in its L. against Coastal Plains Charles
tion 503, Tex.R.Civ.P.
DuCroz. Rule respects, all Micrea’s motion for other overruled.
rehearing is CHRISTI, et
CITY OF CORPUS
al., Appellants,
v. COMMISSION UTILITY
PUBLIC Texas, al., Appellees. et B-7028.
No. of Texas.
Supreme Court 17, 1978.
May 5, 1978.
Rehearing July Denied
McGinnis, Lochridge Kilgore, B. D. McGinnis, St. Austin, Clair and C. Robert for appellants.
Dyer, Redford, Burnett, Wray & Wool- sey, Corpus Christi, W. N. Woolsey, John L. Hill, Gen., Atty. B. Joyce Carpenter, Asst. Gen., Atty. Austin, appellees. JOHNSON, SAM D. Justice. requires instant interpreta- case an tion of the Regulatory Act, Article Texas Revised Civil Statutes Annotated, presents a central issue of impression. first Christi, Appellants al., et Corpus here seek direct review of the order of refusing enjoin district court enforce- ment of the final order the Public Utility Commissiongranting an increase of electric utility rates for Central Power Light Company within appellant jur- cities. The isdiction Supreme Court alleged V, pursuant 3-b, to Article Constitution, 1738a, Article Texas Revised Annotated, Civil 499a, Statutes and Rule Procedure, Texas Rules of Civil which pro- vide for direct this court of any order of granting the trial court or denying injunction grounds of the validity or invalidity of an administrative order. Appellants thirty-two are of the one hun- dred seven incorporated elec- appellee tric service by Central Pow- er Light in a service area comprising forty-four one forty- counties and hundred four thousand square miles South Texas. Central Power and filed a state- change ment intent to rates with each of thirty-two cities under the Public Utili- 43(a). Upon Light’s re- supra, Section bar. ty Regulatory quest, granted an interim that Central requested Each base, January setting temporary information as to “rate rates on revenue, and rate expenses, investment mu- return” the boundaries each *3 explained, the Com- fully As will be more 23 of nicipality to the pursuant mission, 23, 1977, February on entered an its determina- in order to make individual setting tunc forth a pro interim order nunc requested increase. Central tion the rate finding peril not included imminent in Light Power declined to furnish the and The was January order. final order by each and “separated requested city data” 25, on February entered the Commission “system-wide tendered instead uniform rate granting approxi- increase of term data” refers “separated data.”1 The $23,000,000. litigation The in Public mately regarding assets and information 167, al., Docket No. et is Utility Commission solely each operations of the in two mat- now before this court distinct boundary. “System- particular application predi- for writ of error ters: regarding to information wide data” refers 24, order January on the interim cated operations assets and the. 1977; appeal. and the direct instant serves without throughout the entire area it cities as to served. breakdown individual WRIT THE APPLICATION FOR ERROR OF Act, Utility Regulatory
The Sec- Public will 17(a), provides tion its After Commission entered interim original jurisdic- January continue to have exclusive temporary order rates on boundaries, 24, 1977, but tion over within their the cities filed suit in the 98th 17(d) enjoin Com- County under Section district court of Travis jurisdiction. with interim The mission is vested enforcement order. involving elec- order was provisions such cities contended that interim Pursuant express or city after each denied invalid as the Commission had no tric rates and increase, implied power temporary to set rates3 un- requested rate Central Public Utility Regulatory Com- der Act. Light to the Public appealed Further, mission, urged each of the the cities the interim which consolidated 167, No. al.2 was for failure to recite cities’ as its Docket et order invalid cases (cid:127) sys- finding peril case on the of “imminent to the The Commission heard the health, safety, required by welfare” as by Central Power or presented tem-wide data objection. This the Administrative Procedure Article Light and over cities’ 6252-13a, 16(c), Commission, hearing case Texas Revised Civil action data, The 98th district prin- occasions the Statutes Annotated. system-wide on County granted tempo- Travis in the case at court of question to be resolved cipal Light. The en- and Commission and made available 1. Central Power filing package, com- rate final order in Docket No. 91 each an extensive tered amended pursuant 24, piled January to Public record of on 1977. entire regulations, in detail the cur- which set forth No. 91 introduced into evidence in Docket was and 167, al., situation of Central Power thereby part rent financial Light. Docket No. et and made a appeal. in the record the instant direct separate proceeding, Com- A 2. argument here is limited to an 3.The cities’ simultaneously in No. mission Docket power of the attack on Com- original progress. No. both Docket 91 included temporary rates in the mission to fix exercise appellate proceedings Central Power pursuant appellate jurisdiction to Sec- of its in rural areas increases 17(d) Utility Regula- of the Public tions tory parties proceedings in five cities undisputed It is that the Public Utili- Act. are et The cities which Docket No. appellant al. temporary ty power has the to fix appeal inter- the instant direct in original jurisdiction. rates in the exercise of No. The Commission vened Docket 1446c, 43(d). Tex.Rev.Civ.Stat.Ann. objections the intervenor cities overruled the system-wide therein data rary injunction. and Light Central Power 126th County district court of Travis denied appealed appeals.4 court of civil the requested injunction. The cities then appeal instituted instant direct points and 2 their brief Supreme court’s Court of the trial denial of again court of civil at injunction validity the basis of the validity tacked the interim order. an administrative order. The thrust Point 1 attacked the interim on the court, cities’ argument in the trial grounds that the Commission had no ex again points through as their of error 1 5 in press implied authority appeal, this direct is that the final order is Utility Regulatory temporary Act to make upon invalid as it is system-wide based orders in cases it heard on from a data, than according rather municipality. determination of a Point 2 they each allege re- argument reurged the cities’ that the inter *4 quired the by Utility Regulatory Public comply im order was invalid for failure to Act. Act, with the Administrative Procedure 16(c), requiring Section that the orders of However, as point their of error number agencies given all administrative to im be 6 in the appeal, this direct cities again urge effect finding mediate contain “immi that the goes interim order is invalid itas peril health, nent to the public safety, or beyond express implied the powers or of the welfare.” The appeals court civil re Public Commissionunder the Public the judgment versed and rendered of the Utility Regulatory Again, Act. the cities trial and temporary court vacated the in assert the that absence of finding the
junction.
Public
v. City
Com’n
peril”
“imminent
required by
16(c)
Section
Christi,
Corpus
(Tex.Civ.
22 of the areas” authority Commission exceeded its incorporated boundaries areas outside recovery conditioning upon in such a sur- jurisdic exercising original municipality charge. Thus, municipality regulating tion. need question We not reach the of wheth- data within the must determine may prop- er the Public its determination of rates and in boundaries recovery of erly municipality’s condition a data, internal only may consider upon surcharge costs enactment of ordi- nonexempt other areas also data from but question properly as that is not be- nance rates. In utility system us. instant fore case appellate jurisdiction the the exercise of right did not limit the is to set those Utility Commission expenses cities to recover from Cen- have should rates which Light. tral Power The restriction of ap which the ordinance from fixed complain which the the Commis- Tex.Rev.Civ.Stat.Ann. *7 peal taken. fact” that Power “finding sion’s Central Further, 1446c, where the Public 26(e). be “should allowed to collect appropriate it considers payers city the rate in each a sur- two or more may treat the Commission paid charge expense for the cost of single utility, a as a by municipalities served cities, in each parties by third it of said 1446c, art. class. Tex.Rev.Civ.Stat.Ann. reasonable each determine the therefore, hold, that on We §38. by expense cost of rate and finalize same con properly Utility Commission the Public for ordinance and its collection determining system-wide data in sidered year within one date ordinance by Cen served appellant expense the amount of such to be sets Light. hold otherwise To tral Power customers, reality collected from each class contemporary that ignore the would billing, that said utility simulta- time and method of such integrated an the assets of objective: compre- contrary of the Act’s “to establish a determination that a It is be noted utility, regulatory system adequate to integrated hensive which is an electrical would enable regulating public . example, in this in- the task of utilities . Central stance, object myriad 2.§ of rate Tex.Rev.Civ.Stat.Ann. of a to be could well be destructive a result cases. Such
297 expense equitably will be boerne and 24. The final order held that the rates [sic] each rateably by each customer be were to effective as the effective date [Emphasis class.” added.] the interim order. by finding This restricts method order interlocutory An interim or is Light may prop which by pending definition an order made erly pass along ratepayer, this cost cause, disposition a final on the mer before restricting rather than cities. Pass Brown, its. First Nat. Bank Dallas v. costs to the con through rate-making 168, (1932); 122Tex. 53 604 see also S.W.2d by surcharge widely sumer is ordinance Jorns, (Tex.1972). Webb v. 488 407 S.W.2d recognized rate-making practice. Wabash by The interim order entered 488, Valley Young, Co. v. 53 Elec. U.S. 23,1977 February by Commissionon 234, (1933). An S.Ct. L.Ed. 447 adminis only its terms was effective such “until is ex agency trative created to centralize hearing time a final shall be had such and,
pertise
regulatory
in a certain
area
by
rates and a final
is
order
entered therein
thus,
given
large degree
is
be
of lati
this Commission.” The final order of the
courts in
by
by
tude
the methods which
Commissionwas entered Feb
it
its
accomplishes
regulatory function.
25,1977
ruary
entry
and such
has terminat
v. Houston Natural
Railroad Commission
ed the interim order. As the interim order
Corp.,
Gas
Tex.
Prior authority require that utilities CHADICK, J., joins in this dissent. data referred to in 23 Telephone Article 1446c. General ofCo. ON MOTION FOR REHEARING Garland, City the S.W. v. 509 S.W.2d motion rehearing parties On have e.); (Tex.Civ.App.1974, City writ ref’d n. r. Co., holding submitted briefs Arlington regarding v. Tex. Elec. Serv. (Tex.Civ.App.1976, writ n. our opinion May S.W.2d ref’d delivered 1978 that the e.). nothing legislative r. There is in the upon cities’ attack Com- or the words of history Section 23 that mission’s interim order is moot. The court Legisla- would indicate an intention has original determined determina- away authority ture to take tion mootness should be modified and municipalities. contrary, provi- On upon the cities’ attack the interim be 23 seem sions of Section to confer stat- considered on the merits. authority ute same which had been Concern for efficient previously prior held to exist under laws. administra Hopper requires Dr. states: tive procedure consideration may requesting pro- “issue orders Id. 815. See also “Public Commission: utilities to Review,” Appellate expenses, Procedure Judicial vide on these investments Baylor (1976), municipality’s L.Rev. which it is return within bor- stated new Act ders.” *10 upon appeal only orders validity of interim River Lower Colorado final orders. HIESTER, parte Ex William J. Producing Gas
Authority v. States Coastal Jr., Relator. (Tex.1977). Fur- Company, 551 S.W.2d ther, should be deter- the interim order No. B-7599. if invalid, appears it mined to be Texas. Supreme Court of allowing the grant relief court could paid temporary cities to recover June 1978. order. under the interim discussed, the cities previously As
argue that enter an interloc statutory power to
has no exercise of its
utory order in the agree. We cannot
jurisdiction. pro Utility Regulatory
of the Public power to has the that the Commission
vides jurisdic within its public utilities
regulate specifi things, whether
tion and “to do all here implied Act or designated in this
cally to the exercise
in, necessary and convenient jurisdiction.” Tex.Rev. power
of this art. 1446c §
Civ.Stat.Ann. of a pending temporary rates of an interim the issuance order necessary and convenient patently appel the Commission’s
to the exercise of Accordingly, the Commis jurisdiction.
late an order. to issue such empowered
sion the cities assert
Alternatively, failure to com is void for
the interim order 16(c) Administrative
ply with Section Act. Tex.Rev.Civ.Stat.Ann.
Procedure 16(c) provides 16(c).
6252-13a peril that imminent agency finds
that if an health, safety, or welfare re
to the to a given effect be immediate
quires that order, so order with may it
final decision finding. On of such recitation
appropriate final 16(c) only to applies
its face Section apply not does orders and
agency Therefore, we conclude here.
interim order interim or upon the the cities’ attack fails. on this basis
der correcting our purpose of the limited
For interim order
writing relative rehearing is
mootness, cities’ motion such motion respects, in all other
granted; rehearing is overruled. J., sitting.
GREENHILL, C.
