*1 HENRY, Attorney General Robert Oklahoma, Appellant,
v.
CORPORATION COMMISSION OF OKLAHOMA, Arkansas
STATE OF Corporation, Appellees.
Oklahoma Gas
ARKANSAS OKLAHOMA GAS
CORPORATION,
Appellant,
v.
The STATE of Oklahoma and
The Oklahoma
Commission, Appellees.
The EASTERN OKLAHOMA LEGISLA- DELEGATION,
TIVE Senators Gene Larry Dickerson,
Stipe Representa- Mentzer, Glenn,
tives Don Ron Chester Hamilton,
(Dusty) Ap- Rhodes and Jim
pellants,
CORPORATION COMMISSION OF the OKLAHOMA, and Arkansas
STATE OF Corporation, Appellees.
Oklahoma Gas
Nos.
Supreme Court of Oklahoma.
Oct.
Rehearings Denied March
LAVENDER, Justice. 1) presented appeal The issues on are did customers have sufficient notice of AOG’s intent to increase the Commission’s AOG’s *3 2) gas cost of and line loss and is the base increasing the amount Commission’s order of refund owed customers a AOG’s valid hold that the no- order. We adequately tice was insufficient to inform customers that an increase in line AOG’s gas loss or base cost of was to be con- sidered. We further find that Commis- increasing sion’s order the amount of re- in that fund owed AOG’s customers valid right challenge AOG waived its the or- appeal having der on failed to contest the during staff’s motion the Commission’s proceedings.
I. Facts 26, 1985, December Arkansas Okla- On (AOG), gas Corporation utility homa Gas serving certain communities and rural ar- Sequoyah, eas in LeFlore and Haskell coun- Oklahoma, application ties in filed an with the Oklahoma Commission general seeking a rate increase. The Cor- poration designated appli- this Commission Utility cation as Public Docket Cause No. 24, 1986, April 79. On the Eastern Okla- (EOLD), Legislative Delegation homa AOG, representatives of the customers of Gen., Henry, Atty. pro H. se and Robert protest application for an filed a Butkin, Gen., Atty. Robert A. Asst. Okla- utility May of the increase rates. Atty. City, appellant homa for Gen. of year Attorney same General Okla- Oklahoma. homa also filed an as to the intervention application representa- for rate increase as Hernandez, Corp. José J. Oklahoma public. of the tive Com’n, City, appellee Oklahoma for Okla- Corp. homa Com’n. 24, 1986, April the same date that On appearance gener- EOLD entered its Cody L. Anderson and B. William Wad- proceeding al rate increase initiated dell, Waddell, P.C., Anderson & Oklahoma AOG, appli- the Commission staff filed an City, appellee/appellant for Arkansas Okla- designated as Public Util- cation which was Corp. homa Gas applica- In the ity Cause No. 158. Docket Hamilton, Poteau, Representative Jim No. the Commission tion in Cause Legisla- appellant Eastern Oklahoma in the of monitor- alleged that course staff compliance Commission Delegation. tive with AOG’s per fuel ad- AOG its costs from Regulations governing rebase $1.41 Rules per that MCF to MCF and to increase the discovered justment $2.05 clauses1 it had line loss factor its rate from seven through the base recovering line loss2 was AOG percent percent ef- ap- one-half eleven gas adjustment clause.3 The purchased May billings. fective in recovery not plication alleged that this was permissible through mechanism.4 Be- January On the Commission per- and one-half AOG had seven cause staff filed to increase the loss into its base rates cent line factored No. amount of refund determined in Cause previous order es- under the however, application, filed This was rates, recovery tablishing A motion copy under Cause No. 79. of this *4 purchased gas through line loss the actual parties delivered hav- was therefore to all clause resulted an ov- adjustment had ing rate appearances general entered in the application fuel The errecovery costs. proceeding. given As a result EOLD was sought order from the Commission di- application the actual notice of this and of Ad- recting a refund AOG’s customers. subsequent setting hearing for order date application requested ditionally, the that the motion. No mention gas costs be rebased. AOG’s 15,1987 However, January had on EOLD in line that an increase loss was was made already a motion in No. 79 filed Cause appropriate or other be considered that May challenging proceedings the as to the relief be considered.5 would grounds hearing on the of lack of hearing applica- staff
A
was set on the
this
public.
notice
the
EOLD amended
in Cause No. 158 and notice was
tion
par-
February
motion on
1987 to more
counsel for AOG and to the At-
mailed to
notice,
ticularly challenge the
lack of
given
torney
other notice was
General. No
requested
part Or-
a cancelation of that
hearing in
this matter. The hear-
to the
in-
No.
which
AOG to
der
allowed
6,1986. The
May
held on
Commis-
Attorney
was
The
crease its rates.
General
Order
di-
sion entered
No.
which
support
position
filed a
of the
motion
to refund to its customers an
February
rected AOG
The Attor-
EOLD on
$400,000,
challenged
in excess
the exact
the
ney
amount
the order on
General
time,
at a later
intent
amount to be determined
of notice of the
basis
lack
factor,
percent
increasing
plus interest at the rate of six
consider
AOG’s line loss
raising
evidentiary
billing
questions of
during the course of
over the next
as well as
take
authority to
support
also
and Commission
twelve months. The order
allowed
argues
though
appli-
that
the
17 O.S.1981
5.The Commission
§§
See
250-63.
re-basing
specifically say
cation did not
through
gas
gas
is lost
the
Line loss
which
considered,
applica-
the
the line
would be
loss
companies lines in
loss is
its transmission. This
would con-
tion did
that the Commission
state
by determining
passed
to the
the
on
customer
appropriate.
as it
sider such other relief
However,
deemed
percentage of
in transmission and al-
lost
attorney
Commission
as the
for the
lowing
passed on
for that cost to be
to the
out, regrettably
language
left
pointed
was
this
case,
appears
In this
it
that AOG’s
consumer.
We
issued
Commission.
out of the notice
primarily
leaks
loss was
due to
in AOG’s
line
given
argues
point
this
assume the Commission
system.
distribution
holding
v. Cor-
of Chickasha Cotton Oil Co.
O.S.1981, 250(5)
adjustment
§
defines fuel
Comm.,
(Okla.1977),
poration
made the Here the order clear- ly resulted in an alteration in made II. to the consumers of AOG’s services. argues provisions EOLD that the Moreover, testimony of the Commis- allowing in of Order No. 297572 a rate February sion's witness at the crease, i.e. the of increased line allowance hearing was to the effect that the increase costs, gas loss factor and base are invalid in line loss factor and the increase in cost give because the Commission failed to no resulted in a rate be recovered by tice to the consumers affected the in increase to AOG.8 crease. This Court has held that “rate being legislative power “ju making” ... Alternatively, AOG and Com process dicial due notice and ... 8-27(b) contend that Rule has been mission by specifically required unless statute because, failing explicitly by satisfied required. are not While EOLD does ...”6 publication given, order that of notice be contention, statutory not cite a basis for its directing publica had the effect of this required un it does claim that notice was given. disagree. The tion need not be We Art. IX der the Oklahoma Constitution Commission’s failure to act is no substitu However, provi these constitutional express perform for an mandate to tion § publication only notice provide sions particular duty.
a situation where the Commission is en considering challenge on
gaged
actions not directed at
notice,
adequacy
utility.
appeal
Here the
in
as to the
our
named
action
by
utility
of review is determined
Art.
volved a named
and therefore that
standard
Co.,
6. Chickasha
Cotton Oil
AOG’s line loss factor would be increased we 22. Record at 216. given find that such notice as was was insuffi- OPALA, Justice, OPALA,
KAUGER, Justice, concurring. Vice Chief with whom V.C.J., specially: concurring joins Corporation the court holds that agree Corporation the I (agency) to Commission’s failure follow its it when failed not follow rules did require procedural norms—which that no- Although publication. publi- give by notice by publication any pro- tice be may available for the world cation be public posed utility’s in a alteration rate see, suppose that presumptuous it is judicially sanctioned in be —cannot published to all that is anyone could read explana- of some absence reasonable something may reported if detect be Applying the doctrine to tion. Accardi1 property interest.1 Reason affects his/her unexplained departure good practice require that we business from its the court re- 1) appellee, Arkansas assume: allowing order a rate verses the (AOG), main- Gas Oklahoma increase. parties very a list of the who tains current impacted by a rate increase— will be most it
its customers—and that
sends them bills
I
basis;
2)
regular
on a
that notice could
mailings
regular
with
without
be enclosed
ORDERLY PROCEDURE IS A SINE
any undue burden on AOG.
QUA NON OF FUNDAMENTAL
Oil
695 P.2d
Cate
Archon
FAIRNESS
(Okla.1985),
acknowledged
we
wholeheartedly
I
welcome the
birth
necessity
efficiency
nor
can
that neither
today’s
my
It
own
teaching.
reinforces
that,
abrogate
within
limits
to the notion that fundamental
commitment
reasonably
practicability, notice must be
by any adjudi-
fairness cannot be afforded
parties.
reach the
calculated to
interested
process,
judicial,
cative
administrative
by
pro-
If the names
those affected
except
orderly pro-
within
framework
available,
ceeding
disap-
are
reasons
may lay
cedure. No area of law
claim to
pear
resorting
likely
less
than
to means
exemption
from the basic strictures
apprise
possible
mails
them of
ac-
practice2
even
structured
the law
circumstances, any-
tion.2 Under these
—not
making. Proposed
governing utility rate
thing
by
less
mail is a violation
than notice
utility’s charges
in a
are
public
alterations
here,
process when,
party
of due
rule-gov-
regulated
the Commission’s
regu-
charged
duty
of notification
with
process.3
freedom to de-
erned
Unbounded
larly sends bills
its customers—the same
system
from this ordered
will
part at
parties
impacted
the rate
will
which are
chaos,
bring
caprice and
change.
inevitably
about
*8
Co.,
1352,
8-27(B) pro-
3.Corporation
1. Cate v. Archon Oil
Commission Rule
695 P.2d
1356
(Okla.1985).
vides:
2. Greene v.
2.
1.
Hanover Bank Trust
A.L.R.2d
Fund v.
347
70 S.Ct.
Okl.,
Schroeder
83
[1986]
(1949);
1874, 1880,
Pryse
United
S.Ct.
U.S.
595 P.2d
(Opala,
Cate Archon
v. Monument
260,
States
Washburn,
1398,
652,
279, 282,
v.
Lindsey,
City
72
74 S.Ct.
&
435,
J., dissenting.).
659-60,
1403
ex rel. Accardi v.
of
L.Ed.2d
New
Co. v.
456 U.S.
(1962);
Okl.,
9 L.Ed.2d
499,
Co.,
Oil
[1979]; Special
94 L.Ed.
York,
722 P.2d
249,
339
1271
procedural
applicable
affecting
binding force as do court
an
rules
the course of
inevitably
re-
would
regime.
action
judicature.
agencies
Such
forensic
Courts and
adjudicative behav-
in inconsistent
sult
powerless
to
alike must hold themselves
ior,
by
agency or a court.
an
whether
grant dispensation
any
from obedience to
requires
inexorably
fairness
Fundamental
self-generated
procedure
norms of
which
persons confront-
of all
uniform treatment
any given posture.11
clearly command in
procedural
context.
by
like
ed
a
Uniformity
plainly
of procedure is
mandat
Okl. Const.12 Just as
5,
46,
ed
Art.
§
Ill
powerless
regu
legislature
is
to
itself
legal
procedure by
late
norms not uni
OF PRO-
MANDATORY UNIFORMITY
UNDER
STATE’S
applicable
i.e.,
lacking
those
CEDURE
THIS
formly
—
LAW
FUNDAMENTAL
application,
having
but
across-the-board
only
special” impact13
“local or
are
agen
an
in the course of
Rules invocable
—so
adjudica-
the courts as well as all other
cy’s adjudicative process have
same
ject
Procedural rules that are
tory,
266. A
Without
various
266-270.
The decision
full force and effect of law. See
ly promulgated
*10
applied
which their
designed
text
rule, (4)
other law or
it or
ings,
bearing upon
cy.
decisions, (6)
Interpretative
Ball
factors, which
supra,
upon
Davis, supra,
interpretative
procedural
S.Ct.
author
circumstances
[Feb.1990
of items on this
one.
class of
"Interpretative
358. The
(2)
legislatively prescribed
a
force of
classifies
implements
But cf.
Freight
whether
grant
Gruff,
1288,
not.
legislative
See
a
§
exceptions
challenge
enumerates
legislative grant of
legislative
distinguishing
nonlegislative procedural rule is
5.03
judicial
Davis,
validity
cum.supp.].
1292,
rules
Davis,
govern
principle
interpretation,
Service,
3 Administrative Law 13.03[2]
law.
whether an
usually
rule-making authority
rules
specific power
§§ 5.03 and
at
rules varies from case
rules
administrative
weight
rules
rule, (3)
supra,
legislative
the case. See
vention unequal through the use
against treatment regime procedure. discriminatory enthusiastically join today
I therefore agen-
enforcing fidelity and to an obedience
cy’s regime our reversal of order.15 flawed
PEPSICO, INC., Petitioner, BRAGG, Respondent.
Robert Glen
No. 72525.
Supreme Court of Oklahoma. 2,
July 4,
Rehearing March Denied Goff,
Ben A. Frank P.C. E. Walta petitioner City, PepsiCo, Oklahoma for Inc. Stores, Inc., Okl., See Howard Y. v. T.G. & customers in with accordance the Commission [1986], judge’s P.2d 1262 the trial precedent remanding there is a case to comply order was reversed for failure with supply so can that it reasons for applicable procedural the strictures of an See, obey governing refusal to the rule's force. admissibility untimely- dealt that tendered medical with of an e.g., Exchange Chenery Securities and Com. v. Howard, report. As I view it 80, 94-95, Corp., 318 U.S. 63 S.Ct. judicial extends Accardi doctrine to those [1943], agency L.Ed. 626 decision aff'd after proceedings in which a court-fashioned norm of remand, 332 U.S. 67 S.Ct. 91 L.Ed. procedure ignored disregarded was to a liti- [1947]; Crowther, F.T.C. v. 430 F.2d prejudice. gant’s [D.C.Cir.1970]; By see 514-516 also Violations Agencies Regulations, Their Own 87 Harv. agree While I the Commission’s order under [1974], L.Rev. 629 today correctly failing review reversed for explain public utility’s want of notice to
