History
  • No items yet
midpage
Montana-Dakota Utilities Co. v. Johanneson
153 N.W.2d 414
N.D.
1967
Check Treatment

*1 CO., UTILITIES MONTANA-DAKOTA Company, and Otter States Power Northern Plaintiffs, Respond Company, Tail Power Cross-Appellants, ents, and

v. Attorney

Helgi JOHANNESON, General Dakota, al., et for the State North Respondents, Defendants Inc., Cooperative, al.,

Baker et Electric Defendants, Appellants, Cross-Respondents.

Civ. No. 8355.

Supreme Court of North Dakota.

Aug. 23, 1967.

Rehearings Denied Oct.

Pearce, Engebretson, Anderson & Bismarck, Schmidt, respond- plaintiff, for ent, cross-appellant and Montana-Dakota Co., Isensee, Minneap- Utilities Earl H. A. olis, Minn., of counsel. Daner, Bismarck, plain-

Wheeler & for tiff, respondent, cross-appellant North- Nelson, Co., ern & States Power Brusven Sommers, Minneapolis, Minn., counsel. Daner, Bismarck, plain- Wheeler & tiff, respondent, cross-appellant Otter ‍​​‌‌​​‌‌‌‌‌​‌​​​‌​​​‌‌​‌​​​‌‌​​‌‌‌‌‌‌‌‌‌​‌‌‌‌‌​‌‍Co., Field, Arvesen, Tail Power Donoho & Lundeen, Falls, Minn., Fergus of counsel. Sand, Atty. Gen., Paul M. First Asst. Bismarck, Helgi Johanneson, Atty. Gen., respondent. defendant and Gen., Helgi Johanneson, Atty. E. John Adams, Gen., M. Atty. Asst. and Norton Gen., Hatlie, Sp. and Com- Atty. Asst. merce Commis- Counsel of Service Bismarck, sion, respond- for defendant and ent Public Commissioners. Bair, Morris, Bismarck, portion It further Vogel & tutional. held that the James Mandan, Bernays found to be invalid was severable from the Frederick Wiener and Wise, C, balance of the and that the balance of Washington, D. W. William C. Holand, Judgment the Act valid. entered Grafton, Roy was was DePuy, A. La- T. accordingly. Kloster, Dickinson, Moure, Her- Paul G. Meschke, Minot, Thomp-

bert Alfred A. L. co-operatives appealed The defendant son, Bismarck, Myron Fargo, Bright, H. summary judgment, from such and from Lindell, Washburn, Eugene William An- thereof, demanding the whole trial de novo Schulte, thony, City, Q. R. Watford Stan- plaintiff this court. The Mandan, Calton, ley, Ulmer, L. G. Calvin cross-appeаled portion Bottineau, Benson, Crosby, B. Robert O. summary judgment portion held a Chesrown, Linton, Johanneson, Lang- Kent Noack, don, Carrington, Fabian & finding the Act constitutional from the Johnson Cook, Milloy, Wahpeton, Maurice Bow- E. portion of the trial court un- held man, Richardson, Hazen, Bjella, constitutional was severable from rest John Jestrab, Williston, Pippin, Neff & for de- of the Act. fendant, appellant, cross-respondent generally referred The Act in co-operatives. Its Integrity Law.’' to as the “Territorial *5 purpose 49-03-01 was to amend Sections STRUTZ, (on reassign- Chief Justice Century North Dakota and 49-03-05 of the

ment) . utility, required public before Code which operation beginning construction or utilities, Three public investor-owned public utility system, or an exten- plant or Company, Montana-Dakоta Utilities North- thereof, sion obtain from the to Company, ern States Power and Otter Tail public certificate of Commission a Company, doing Power in the business necessity. convenience and Dakota, bring State of North this action public provides that electric the Act no declaratory for a judgment against twen- operation utility begin shall construction ty-one co-operatives, joining rural electric system, or ex- public utility plant or of its Attorney General the State and thereof, obtaining first tension without members of Service Commission Commission such from the Public Service who, by of the State of North Dakota neces- public certificate of convenience being required law which is challenged, are provide: sity, goes on to and then provisions. to administer its This action is brought validity to test the “ * * * utility public nor shall such 1965, of the Session Laws of and to seek extend electric transmis- henceforth its injunction against an its enforcement. or out- beyond sion distribution lines corporate any munic- side of limits joined, plain- After issue was both the ipality, any nor shall it serve customer tiffs and the defendants moved summa- place where the is not locat- to served By summary ry moving for judgment. corporate a munic- ed within the limits of parties that there is judgment, all concede until, applica- after ipality, unless and to material genuine issue as facts no tion, public utility such has ob- electric action, they to be determined public tained from the service an order declaratory the court enter a seek commission of North Dakota state under Rule North Dakota judgment authorizing such extension and service of Civil Procedure. Rules public certificate that convenience summary require necessity permission that ‍​​‌‌​​‌‌‌‌‌​‌​​​‌​​​‌‌​‌​​​‌‌​​‌‌‌‌‌‌‌‌‌​‌‌‌‌‌​‌‍the motion passing por- given held that a extend lines and to serve the trial court such judgment, such customer.” Act was unconsti- 3 of the tion of Section by the Public regulation Service Commis- being the law 3 of public allege sion. The utilities further attacked, follows: reads as public utility that a can custom- have new public “The commission service corporate ers within the limits of a munici- not Dakota issue its state of North shall only pality if this does not interfere with public conven- order or certificate of co-operative provided already services public electric ience аnd co-operatives municipality; in the that utility electric distribution to extend its public right complain against have the beyond corporate of a lines limits utility, utility no but that the has customer municipality or to serve a complain against co-operatives for right to place to is located out- whose be served encroaching interfering with customers or municipali- corporate of a side the limits territory public utility. upon corpo- co-operative ty the electric unless They gives electric assert that facilities nearest ration with lines or utilities, and rights certain place required shall con- where service is they yet specifically provides that shall by such writing extension sent such be deemed utilities. unless, upon public utility, or electric cоmmission, called hearing before Finally, public utilities contend notice, upon be shown shall preference, disregards the law customer required cannot be service energy is com- and the user corporation. co-operative an electric of a unwilling subscriber pelled to be an necessary if not be Such certificate shall get service co-operative order approves service commission co-operative. agreement an between a argument Thus co-operative serv- rural electric and the Laws of Chapter 319 of the Session includes the station ing the area which unfair, unreasonable, and arbitrary, desig- agreement to be served *6 pro- group one discriminatory in favor of in an area to be nаtes said station to be expense the services at viding electrical public utility.” by the served public utilities prejudice of and provides 4 the Section of law for certain public. expense of the and at the from exclusions the of the Act. 3 of the held that trial court The plaintiff public The utilities contend that sentence Act, exception of the last the with the law is unconstitutional for a number of pro- in that it thereof, unconstitutional was They public utility reasons. contend that a Commission Public Service the hibits required application cer- is to make for a delegated exercising legislatively its “from public of tificate convenience in determin- public the power protecting of ” to extend its service a new customer necessity.’ ‘public convеnience ing municipality, outside of a while co- 3 dele- that Section court held The trial required operatives to make such nonregulated com- power to a gated such application to serve new rural customers. corporations, or petitive of citizens class They further contend that or safeguards adequate providing given monopoly without in rural areas and rules promulgation of the standards for operate supervision are allowed to without inter- protect the regulations regulation Com- unconstitutional est, it was an mission, and that regulated while utilities are inwas power and legislative of They delegation aspects operations. all in their the clauses due-process of the violation say co-operativеs, under can this trial constitutions. Federal State and infringe upon now served an area portion however, find that such court, did corpo- the if it is outside of to be unconstitu- it found any the law which municipality, rate limits of the without power hold The exercise of tional from the was severable balance of Act, legislature invalid is one of Acts and that the balance of has of the courts. highest functions was valid and in full force and effect. power one been held that this involves courts, responsibilities of the greatest appeal by the defendant co great be exercised with and that it should operatives court, in tried an action restraint, reluc caution, and even with summary judgment, and from the Law,” Am.Jur.2d, “Constitutional tance. 16 thereof, demanding trial whole de novo in 109,p. Sec. court, this all of issues in the raises appeal, on that are case those favorable as exercising power to declare as which are unfavorable to the well those invalid, the Legislature enactments of appellants. raised, No additional issues are presumption start with the courts therefore therefore, by cross-appeal Assembly acted within its constitu utilities. may re though the law powers, tional even inequality. sult in State v. Gamble some genuine no Since there were issues Inc., supra. Skogmo, determine, fact for the trial court entry summary judgment by the trial question The first facing ap- us on this court, 56, proper. Rule motion, was peal whether, invoking presump- after N.D.R.Civ.P. tion validity favor of the 1965,

of the Laws of infringes statute upon constitutional palрably restrictions so regularly 319 is a enacted that there is no room for and, such, Act of the can be validity. words, doubt as to its In other only held invalid and unconstitutional if at unfair, unreasonable, the law arbitrary, so four of judges least of this court shall and discriminatory against utili- decide. so Sec. N.Dak. Constitution. ties as to itmake unconstitutional ? presume court This must that an Where language of a statute is Act of the Legislative Assembly is consti clear, certain, unambiguous, the courts valid, tutional and doubts as to its only duty giving effect to must, constitutionality possible, if all at expressed intent thus Act. validity. resolved favor its State ex Asbury Hospital County, v. Cass N.D. Baker, rel. v. 74 N.D. Johnson 359, 7 N.W.2d 438. *7 355; Rudolf, 91, N.W.2d Herr 75 N.D. v. 916, 25 N.W.2d 169A.L.R. 1388. The wisdom and the of questions the law policy are of the validity the a leg of passing Legislature the and are matters for enactment, every pre islative reasonable Asbury court to take into consideration. sumption is in favor of the constitution Hospital County, supra. v. Cass ality law, presumption and this is proof of conclusive the clear absence light general In the of ob these contrary. City the v. servations, to Stark of let law us now examine the James town, 422, 516; 76 N.D. 37 N.W.2d North plaintiffs which the contend is unconstitu Improvement western Co. v. Morton Coun tional. successfully It be cannot main ty, 543; 78 29, N.D. 47 N.W.2d Menz v. tained Legislature that the does not Coyle (N.D.), 290; power 117 N.W.2d Interna the under regulate to utilities Printing tional police plain and Assistants the powers Pressmen the State. The Union (N.D.), of North America Meier tiffs v. make no contention. 18; conceded, believe, power reg 115 N.W.2d that the Skogmo, v. Gamble we State (N.D.), Inc. power 144 ulate the eliminate N.W.2d 749. includes

421 might more competition. economically 11 73 Public Utilities render such serv- § C.J.S. guidelines seq., ice. No pp. et and 1007. are set out in the law by to be co-operative followed the in mak- contend, however, plaintiffs The ing such determination, safeguards and no 319, Chapter pro 3 of which provided against arbitrary by action by giving vides for the of consent the ru the co-operative. pointed As this court out co-operative ral electric nearest the rural in Nord Guy, supra, v. and in the earlier area, proposed to be served case of Wilder Murphy, supra, v. we must utility, delegation legisla is an unlawful guided by be certain rules which control in tive court has held in a authority. This our consideration the challenge by legislative power number of cases that can public constitutionality utilities to the Murphy, 56 delegated. not be Wilder v. the Act. Legislature The must declare the 436, 156; ex rel. N.D. State N.W. policy definitely and must fix Davis, 191, Kaufman v. 229 N.W. 59 N.D. legal principles which are to control 105; Guy 141 N.W.2d (N.D.), Nord v. action taken. If the Public Service 395. permitted only Commission is to ascertain poli- facts and conditions to invalidate a But to statute because cy, ap- Legislature, as declared tois delegation legislative of unlawful au ply, the Act will be held constitutional. thority, clearly appear must attempts But Act delegate, where the power is, fact, delegated legis which is either the Public Service Commission Peterson, 949, N.D. lative. v. Anderson co-operative, powers and functions 54 N.W.2d 542. policy fix which determine such and which control, principlеs the Act which are to Do Fink is unconstitutional. Fink v. Cole and 319, of the Session Laws of 1965 constitute Club, N.E.2d Jockey v. 302 N.Y. an delegation unlawful au- thority co-operatives? to electric provisions of Section 3 319 re- that, in this case argue quire public utility to secure a certificate since could have convenience and necessity to ex- by law that the public not, utilities shall tend beyond its lines corporate limits under circumstances, permitted of a municipality, unless rural electric areas, serve in rural as defined co-operative with place lines nearest position utilities are in no to com- where the required service is shall consent plain, they permitted because to serve in writing extension, unless, to such co-operative some rural areas where the upon hearing Commission, before the it nearest gives its area to served con- is shown that such rural electric co- clearly sent for them to so serve. There operative provide cannot such service. no merit argument. Legisla- If the Thus, practical purposes, all the co- ture had determined that the operative, not the Public Service Com- only areas, should serve in urban *8 mission, body is the that determines wheth- legislative would been determina- have a public er a of certificate convenience and pre- Chapter But tion. Section 3 of necessity granted public utility shall be to a Legisla- different situation. The sents a in the munic- area outside limits of the is to ture itself does not determine who ipality. It in rural areas. furnish electrical service to the electric leaves that determination Under co-operative clearly is an unlaw- co-operative, and this power has this regardless of whether it or authority. legislative delegation ful utility qualified best is to serve area and regardless of the The trial fact that court found the last sentence public utility applying to serve such Section 3 of be area 319 to valid.

We believe finding this begin opera- was error. There convenience and to is no distinction tion in municipality between last sentence and extending this before and the balance of it their municipality, which service outside of a instances, found to be co-operative invalid. In both a while need not secure such public utility expand to to do wishes into a rural certificate business outside of a mu- instances, area. nicipality. In both unjust the electric ‍​​‌‌​​‌‌‌‌‌​‌​​​‌​​​‌‌​‌​​​‌‌​​‌‌‌‌‌‌‌‌‌​‌‌‌‌‌​‌‍co- Does constitute an operative nearest the area to be served persons groups discrimination between agree case, must to such In one furnishing commodity electricity extension. the same — it in writing public utility consents that the —so as to process constitute denial of due applying may to equal protection furnish such service ex- and under the law? area; other, tend its lines into such in the We believe there is a valid basis for approval

it enters into a formal of such utility. classification of public suppliers extension We can these situations, find no distinction in the two energy electrical legally justifies which and, agree- whether it be consent or distinction, such a whеre the ment, co-operative, and provide sees fit to such grouping. for Commission, actually determines public utility, case of a the consumer granted. whether the certificate shall absolutely operation has no voice operated private business. is profit benefit of the and stockholders We therefore hold that all of Sec given is monopoly a virtual by law in the unconstitutional, tion 3 of 319 is super- area where it serves. Unless some delegation as an unlawful au for, vision is excessive rates thority. unjust procedures imposed, adopt- could be ed, practiced. co-operative, An electric public utilities also contend that all hand, on the operated other is without of Chapter 319 unconstitutional, in that profit. consumers arе Its members of the entire law discriminatory and arbi- co-operative and, members, are in con- trary, requiring utilities to se- trol policies and have a in the voice cure certificates convenience and neces- co-operative. The directors select- sity extending before service to new cus- ed the members fix the rates to tomers, co-operatives while permitted charged. Furthermore, charged if rates are to extend service to new customers outside which bring are excessive and in more municipalities securing ap- without than is needed for maintenance and costs proval or certificate of convenience and excess, operation, the under the necessity. They contend that electric co- is to be members, returned to the operatives given monopoly operate the law specifically provides that electric in areas municipalities, outside of without co-operatives operated are to be without supervision, while utilities are profit 10-13-05, that, strictly [Sec. regulated supervised N.D.C.C.] in all as- if rates charged produce pects an excess over operation. of their They further what is operation needed for and mainte- gives contend that the Act nance and for improvement, reserves for right complain against public utili- shall be returned to the ties, members gives but to the [Sec. utilities no sim- 10-13-06, Furthermore, if the right complain ilar against co-operatives N.D.C.C.]. policies co-operative are not satis- unreasоnably interfere custom- with factory consumers, they, as mem- upon ers or encroach bers, power But, change them. territory. their utility, case of a consumers *9 public regulat- It is true that utilities are have absolutely operation no voice in the ed, co-operatives business, while are Public of the making poli- not. in the of its cies, utilities must secure certificates of in the fixing or of its rates. government. prin- branches of Under the Federal constitu The State ciple authority op separation powers, uniform require to have tions all laws special pass legislation Legisla- to in the any is vested eration, granting of and the exclusively. tive any government class Branch of the immunity to privilege or part power law-making The con As a of the of the expressly prohibited. citizens is however, not, pro Legislative Assembly, right it has the to limitations do stitutional policy. policies The classification, provided such classifi determine hibit otherwise, or purposes adopts may of the which it be wise for the cation is reasonable justifiable but it upon proper, prerogative is not courts legislation, based is to purposes the wisdom of the laws which concerning distinctions arbitrary, Legislature is not a subter We believe that enacts. is not provides burden an or to the enactment of a law which fuge to one class shield unlawfully ad other, supervised regulated in its oppress utilities Commission, by Co. v. Woolworth Public Service F. W. ministration. supervi- provide which does not for such Gray, 46 N.W.2d 77 N.D. co-operatives, sion regulation of electric Chap- Here, by enacting Legislature, controlled supervised which are Laws, has es- Session ter 319 of members, legis- their would be within such policies regulations and tablished certain authority. determination is a lative This services of electrical govern the extension that, in en- policy We do not find matter. the busi- Dakota. If in the North State of statute, Legislature made acting this op- its public utility, operated by is ness special privi- grant of unconstitutional Public Service regulated by is eration co-opera- leges or immunities to electric operated an elec- If it Commission. classi- it was to establish tives. What did the control under co-operative, tric and is electrical suppliers for the fications themselves, Legisla- of the members legal- energy, are based which we believe ture, wisdom, that such assumed its ly justifiable distinctions. business, members, their own who control inter- their adequately protect own would Legislative policy, while not con Service by the Public ests and no control courts, clusive on the is entitled great necessary. deemed Commissionwas consideration. In re Garrison Diversion Conservancy District (N.D.), 144 N.W.2d The fact policy 82. And such established given Act, right, are under the to com subject only to limits fixed plain to the Public Service Commission by the State and Federal constitutions. against public utilities violate v. Young, 77 N.D. 43 N.W.2d James Act, but utilities 692, 20 A.L.R.2d 1086. given right complain no similar against legislation Service Commission The here under consideration not, itself, co-operatives, electric would is not found to be arbitrary or discrimina- give tory make the Act invalid. Act doеs in the sense that is in violation of right bring ac utilities the constitutional restrictions, and the conten- tion tions in district courts the State disregards the law customer preference any injury they might because of suffer is without merit. by any

the violation of this Act Having held that Section 3 of co-operatives. Thus, while unconstitutional, 319 is ques complain cannot to the tion now portions arises whether those Commission, they not without an ade the Act found unconstitutional are severa- quate remedy. ble from the balance of the law. In other words, under our can Legislature, the balance of the Act stand Constitution, independent given effect, three and be though portion is one of even

424 invalid, the law is or In Department of must entire of Highways State fall, Baker, 702, for law as contended v. 257, 69 N.D. 290 N.W. 129 por- 925, utilities? аs whether A.L.R. this court had under considera tions of a tion the validity Chapter statute which are constitutional 170 of the Ses upheld effect, 1939, be given shall sion assessing even Laws of levying though portions special are of the law struck tax of gallon license one cent a unconstitutional, primari- as all down involves motor-vehicle fuels sold licensed ly the ascertainment of intention of the dealers in the State of North Dakota. objectionable parts Legislature. If the are Act saving This contained no clause. penalty provisions severable from the rest of the law in such of the Act found were way presumed unconstitutional, that it would be that the to be but the balance por- Legislature upheld would enacted such have in a deci was three-to-two parts, court, case, without the the failure tions invalid sion. The in that Malin citing portions County, 140, of the invalid necessari- would v. LaMoure 27 145 N.D. ly 582, render the invalid. L.R.A.,N.S., entire statute N.W. 997, 50 Ann. case, may such be enforced as Cas.1916C,207, statute said: portions law which are con- to those of the part “Where a of a statute unconsti- Am.Jur.2d, “Constitutional stitutional. 16 tutional, require that fact does not Law,” 186, If, however, the p. Sec. 414. courts to declare the remainder void por- and the unconstitutional constitutional also, con- unless all upon dependent each other tions so subject-matter upon nected in depending Legislature that the to warrant the belief other, operating together each en- in their intended them to take effect purpose, same or otherwise so connected tirety or follows that if the all, not at it together meaning that it cannot effect, it given must be whole cannot be presumed Legislature would Assembly presumed Legislative passed the one without the other.” portions the valid passed not have would then independently, entire law is and the Milhollan, Hughes See also rel. State ex v. valid. 184, 292, p. 50 N.D. N.W. at Where the Legislature has used a Are various sections of saving Act, clause in passage the in dependent upon so each other or connected tention of Legislature, course, in meaning presumed cannot be clear. held, This court has on several oc the Legislature passed would have the val- casions, that in such event the portions id of that Act without found those will given intent Coyle effect. Menz v. to be invаlid? think provi- We not. The (N.D.), 117 N.W.2d 290. saving Such sions 1 require that a clearly clause to the indicates court con utility, beginning before construction or struing the statute that the law would have operation public utility sys- plant or passed been parts. even without the invalid tem, thereof, or the extension obtain cer- State, v. Tooz 76 N.D. 38 N.W.2d 285. tificate of convenience The Legislature, Commission; passing provides Laws not, however, public utility begin did that no ex- shall press its way, intention in operation this construction or the Act thereof, carries no saving plant system, not, clause. So we do extension case, have the securing intention of without first a certificate Legisla- definitely expressed ‍​​‌‌​​‌‌‌‌‌​‌​​​‌​​​‌‌​‌​​​‌‌​​‌‌‌‌‌‌‌‌‌​‌‌‌‌‌​‌‍ture in the and necessity, Act convenience nor shall itself. However, the intent it extend its transmission оr distribution in a situation of expressed corporate this kind is lines outside the in Sec- limits of tion 1-02-20, Century municipality North Code, Dakota without an order of the Public point as we out authorizing hereinafter. ex- Service Commission

425 SCHNELLER, judges the of the one of tension; ex- 4 for certain provides Section District, sitting in his stead. Third from the limitations on extension clusions Judicial service; provides 5 for enforce- of Section the a against

ment of Act and restraints PAULSON, being a J., not member of public utility for interference with another at the time submission of this the Court of public co-operative, utility or an electric case, participate. not did against permits bringing of and the actions public co- electric utilities or electric TEIGEN, Judge (dissenting). recovery and operatives damages; оf definitions. Section 6 lists certain It is clear to me that the Legislature, in adopting Chapter the 319 of Session Laws We that believe the policy established a of law that a Act 3 can from the be stricken public utility, therein, as defined shall not validi any affecting in manner the without permitted be by the Public Service Com- ty of of the such the balance since expand mission to upon its electrical serv- dependent upon each provisions are not ices the in rural State, the areas of unless it meaning in that other or so connected it until has obtained an order from the presumed Legislature be the must Public authorizing Service Commission 2, 4, 5, passed not have Sections would such and, extension and service with one 6 and without Section exception, a certificatе of conven- necessity. ience and 3, quoted in Our Legislature, in enacting the the majority opinion, governs the Public Century Code, possibility foresaw the of Service Commission in this decision. having part a law by declared invalid provides that the Public Service Commis- the courts. it So in the sion shall not issue its order or a certifi- any sentence, clause, part event chapter, or cate of convenience and any adjudged title should be to be inval electric to extend its elec- id, judgment such in should not affect nor beyond tric corporate lines limits aof part validate other Sec. law. municipality, or to serve a customer whose 1-02-20, It is our this N.D.C.C. view that place served is located outside the apply of interpretation rule is intended to corporаte municipality, limits aof unless to amendments to the Code as to as well finds that certain facts exist. These facts original Code itself. are that either co-operative, the electric with lines or place nearest facilities point utilities have failed to required, where service is has consent- any provision out the Constitution ed in writing by to such extension the elec- which makes sections other than Section public utility, tric or that the re- service 319unconstitutional. quired provided by cannot be an electric co-operative corporation. The certificate opinion, For reasons stated this required agreement is not if an been judgment of trial court is has modified public utility entered into between all of uncon- hold Section 3 stitutional, prоper co-operative, provided and, modified, electric it is affirmed. approved agreement These conditions are Service Commission. ERICKSTAD, JJ., KNUDSON and the Public Service guidelines govern SCHNELLER, J.,D. CLIFFORD concur. administering policy Commission as established MURRAY, at J., member of the Court this area. case, deem- time of submission specifically saying majority, without with disqualified, did not sit himself ing grant so, have construed Section Hon. CLIFFORD argument, Court on by it shall served remains for decision monopoly in rural areas of State to Commission, co-operatives. I do not after agree ascertaining all the with this construction of the section. I do facts conditions question policy applies, a which the of the law includ- agree whether public utility ing may extend its into convenience services *12 neсessity. only by rural to be determined the area is co-operative place the electric nearest police powers The exercised State has its I where such services are to be rendered. to control investor-owned the believe Public Service Commission has years. jurisdic- many complete for While power grant the such extension in the placed the tion was in Public Service Com- by agreement absence of the consent or the mission over investor-owned utili- co-operative electric the electric where ties, Legislature provided the co-operative physically provide can jurisdic- Service Commission shall have no were it for services not the refusal contracts, “rates, tion over services rеn- apply customer to be it. served for dered, sufficiency safety, adequacy, or facilities, regulations or the rules or The require statutes do not a rural cus- * * * any public operated not tomer to seek membership in the electric * * 49-02-01.1, profit, for Section co-operative serving area, his request or its 49-07, Chapters through N.D.C.C. 49-01 service Therefore, nonmember. if a N.D.C.C., applicable which are made potential customer, rural for reasons of his public utilities, Chapter 49-20, N. own, refuses to receive central-station D.C.C., applicable which is to all electric service the electric co-operative serv- companies, impose requirements various ing area, it appears his to me that if the upon public apply not utilities whiсh do co-operative electric provide it, cannot co-operatives. police power electric The production proof of such in hearing be- State not has been extended over fore the Public Service Commission autho- rates, electric in the area of it to rizes issue order permitting its an ex- contracts, rendered, safety, services ade- tension of by public utility, service if it facilities, quacy, sufficiency except or also finds convenience and ne- safety regulations lo- when their lines are cessity tests are met. in, under, public highways cated or across public places, 49-20-02, or N. Thus, the Legislature, wisdom, in its has D.C.C., or construction provided protection for person who re high voltage amperage reconstruction of sides in a rural area and who chooses lines, 49-20-03, to receive central-station N.D.C.C. service from the co-operative electric serving his area be patron relationship The between the cause he does not towish contract with the co-operative is on con- electric based co-operative. electric protected He is subject by tract is not to control required, extent that he is not against Commission. There no is will, his to seek non-policed service from a buyer-seller relationship as the member- supplier electricity may which he feel buyer both owner is and seller. An elec- will against discriminate him as did Lille- operates co-operative nonprofit tric aas Tri-County thun in Lillethun v. Electric surplus cоrporation earnings cred- Cooperative, Inc., N.D., 152 N.W.2d 147 patrons ited back to furnished its who 8390], No. or for other [Civil reasons. is, undoubtedly, them. It for these reasons hand, On the other not extended its Legislature, in that the has its wisdom, rates, contracts, person police has not powers over serv- an rendered, right electric by etc., absolute to be served an ices over the co- electric public utility. question operative corporations. whether he statute, my it relationship opinion, makes vul- Thus, a business when attack constitutional basis nerable to on a rural comes into existence between a cus- potential is customer. resistant co-operative, tomer and an electric is on police powers true under State voluntary part оn the basis cus- rights can nec- private interfere with when patron. tomer who An becomes a> electric essary protect public many areas co-operative required by Section 10- 13-04, but we are not concerned here with N.D.C.C., to serve the customer and may or not the State accept of whether application his membership, if simple fact exercise it. he resides rural area served not done co-operative State has so. agrees to abide bylaws. poten- of its But a my opinion, 319 of the Ses- tial rural required by customer is not *13 sion of 1965 not broaden the Laws does co-operative. to contract the with co-operative, does rights of the nor electric serving ru- exclude majority appear to construe mеrely tightens guidelines ral areas. It the require 319 of Laws of Session 1965to by Commission which Service potential a rural customer to contract for expansion governed permitting co-operative electrical service with the utility requires in rural areas and service serving his if it area refuses to consent or con- of a certificate issuance agreement enter into an that he be served utility venience and where by public utility, a unless the Public Serv- into co-operative not and the have entered ice Commission finds as fact that to Public acceptable an agreement co-operative electric cannot serve the cus- It does not eliminate Commission. Service tomer for physical geographic or reasons subjeсts the cus- preference but customer only. I do agree not with this construc- service preference for tomer’s co-operative tion. I think an electric can- by inquiry an and decision to provide the service within def- question of Commission on inition of if the the Act customer refuses necessity. .public and convenience patron become a to of the electric co- operative. To hold otherwise forces me if we construe appears It to that potential against rural customer to contract otherwise, be it will violative statute will. A right his citizen’s to contract or and 1 the State Constitution Section of not to contract is one of the liberties that 13. Section process clause of Section due belongs is inherent and inаlienable. to provides: 1 every citizen by the law of the land and by equally free and every man nature liberty freely to All men are at deal or re- certain inalienable independent fuse to deal and have with his 16 Am. fellowman. enjoying Jur.2d, Law, rights, among are those Constitutional Sec. which 373. liberty; ac- defending and There are and life certain these limitations but protecting prop- applicable and only powers quiring, possessing the police where erty reputation; pursuing and and the State are and invoked based some rea- safety happiness. Am.Jur.2d, obtaining sonable basis. 16 Constitution- Law, al Secs. 374 v. “liberty” as stated in State word “in- Cromwell, N.D. N.W.2d

Our 9 has not fit to seen in- to citizen to be free police right cludes the powers voke the in this area and it ways; to live lawful improper use faculties in all poten- for us to assume his that »is will; to live- earn his where he electricity tial rural work customer is now pursue calling; lawful compelled by lihood contract with electric vocation, that and for co-operative area, serving livelihood his unless the contracts which purpose to enter all co-operative into agrees consents or may necessary, and essential proper, give be otherwise. To such construction to carrying his out these purposes to a suc- process Thus the due protects clause cessful conclusion. Within the meaning of enjoyment insures the rights de- ‘liberty’ the term is also right included the clared Section 1. sell, buy freely to select tradesmen ‍​​‌‌​​‌‌‌‌‌​‌​​​‌​​​‌‌​‌​​​‌‌​​‌‌‌‌‌‌‌‌‌​‌‌‌‌‌​‌‍citizen may himself de- my It is required view service patrоnize, manufacture, sire to to ac- cannot an electric co- quire property, community, to live in a operative corporation potential if the rural market, open free and right customer for central-station service refuses speech, free against of self-defense un- violence, and, lawful general, to contract co-operative with the electric opportunity things to do those for such service. ordinarily done free men.” aforesaid, For reasons I am of the If the statute violates Section 1 of the opinion 319 of Session Constitution, it also violates the last clause delegation Laws of is not an unlawful provides: of Section 13thereof as it power. agree I * * * * * * person No shall remaining portions Chapter are val- life, deprived liberty property with- process out due of law. id.

Case Details

Case Name: Montana-Dakota Utilities Co. v. Johanneson
Court Name: North Dakota Supreme Court
Date Published: Aug 23, 1967
Citation: 153 N.W.2d 414
Docket Number: Civ. 8355
Court Abbreviation: N.D.
AI-generated responses must be verified and are not legal advice.