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Northern States Power Co. v. City of Oakdale
588 N.W.2d 534
Minn. Ct. App.
1999
Check Treatment

*1 STATES POWER NORTHERN

COMPANY, Appellant, OAKDALE, Respondent.

CITY OF

No. C3-98-867. Appeals of Minnesota.

Court 2, 1999.

Feb. *2 Ludcke, Berens, P.A., Kelly & George requested 0. that the lines be installed under- MN; Bagley, ground. and Harold Minneapolis, J. tariff NSP’s 5.3A in rel- Attorney, Department, part: Law Senior Northern evant Company, Minneapolis, MN

States customer, requested by group When (for appellant). customers, developer, *3 municipality Strommen, provide types of in James M. Daniel J. Green- service result an Graven, Chtd., expenditure sweig, Kennedy & in Company Minne- excess des- (for respondent). ignated apolis, provided service MN installation as un- 5.1, der Section STANDARD INSTALLA- Hatch, Attorney General, Michael A. Me- * * * TION, requesting municipality Hertzler, Aiders, gan D. J. Dennis Assistant responsible will be expen- for such excess (for General, Paul, Attorneys St. MN amicus diture. Minnesota Public Utilities Commis- curiae sion). agreed NSP to construct the new lines un- derground city if agree pay would Anderson, D. Christopher Minnesota Pow- additional costs underground- associated with (for er, Inc., Duluth, MN amicus curiae ing. undergrounding NSP estimated that Inc.). Power, Minnesota $338,000, would cost an additional over and LeVander, Jr., Simon, Maun Harold & $190,000 above the cost of construc- overhead (for PLC, Paul, St. MN amicus Rural curiae tion. Association). Electric July city passed In an ordinance Cities, Heyl, League of Carla J. Minnesota any installation of electric dis- (for Paul, League St. MN amicus curiae systems 15,000 tribution of less than volts be Cities). Minnesota Oakdale, placed underground. Minn.Code of 1997). §§ (July Ordinances 23-40 and 23-41 HALBROOKS, Considered decided ANDERSON, Presiding Judge, Judge, and granted was permit NSP then from HOLTAN, Judge. authorizing completion MnDOT pro-

ject using overhead lines. NSP informed the O PINION city that was not to obtain a permit city from the because MnDOT had * HOLTAN, Judge. A. HARVEY highway exclusive over trunk state (NSP) Company Northern States Power right-of-ways under Minn.Stat. appeals grant from the district court’s (1998). NSP offered to its amend franchise summary judgment in favor of city so that the additional costs of (the city) involving Oakdale in a case undergrounding paid could requiring underground electric dis- ratepayers franchise fee collected from NSP tribution affirm. lines. We city. in city The declined the offer. began construction of the overhead FACTS construction, day lines. On the first In spring Corporation Imation Department Oakdale Police notified the NSP requested provide that NSP additional ser- crew that the construction was in violation of facility vice to its located ordinance, and crew members would be subsequently Oakdale. NSP informed the they if arrested did not cease construction. city of its intent construct new overhead brought seeking NSP then this action a de- along high- electric distribution lines state claratory judgment the ordinance was ways 5 and 120. NSP’s General Rules and seeking enjoin invalid and enforcement (tariff) Regulations 5.1A the ordinance. Company right “[t]he desig- reserves the type nate the city facilities to be installed subsequently agreed The to allow NSP city either or underground.” go overhead forward with the overhead construe- * Const, court, judge VI, serving Retired pointment pursuant of the district to Minn. art. judge Appeals ap- of the Minnesota Court of any city genuine the ordinance tion. The later amended issues fact material exist and highways trunk from the whether the district court applying to exclude state erred in Oakdale, Barnett, the law. Wartnick v. undergrounding requirement. Moss & (Minn.1992). (October In making MinmCode of Ordinances determinations, 1997). “the court must city view the evi brought a motion to then light dence in the most complaint favorable to the dismiss NSP’s for mootness. NSP nonmoving party.” State Beaulieu v. summary brought judg- a cross motion for View, (Minn. Mounds validity ment on the ordinance. NSP of 1994). given No deference need be detailing with its motion an included affidavit district application court’s of the law. Frost- projects future that would be Benco Elec. Ass’n v. Minnesota Pub. Utils. pro- affected the ordinance. One of the Comm’n, (Minn.1984). jects January begin was scheduled to *4 Statutory interpretation presents question a and included 1.2 miles of within of law that appellate court reviews de city. Hibbing novo. Educ. Ass’n v. Public Em Following hearing, the district court de- Bd., ployment Relations 369 N.W.2d city’s nied the motion to dismiss for moot- (Minn.1985). ness, summary denied NSP’s motion for judgment, granted summary judgment I. city. on the in merits favor of the The court NSP that the district court commission-approved that concluded NSP’s erred when it determined that the commis general tariffs did not attain the status sion-approved tariffs failed to attain the sta law, state that the ordinance was not general tus of procedural state law due to by preempted or in conflict with the Minne- agree. deficiencies. We (MPUA), sota Public Utilities Act (1998), ch. 216B and that the ordinance was The commission granted has been city’s power. legislative authority valid exercise of the regulate public utili injunctive court accordingly, denied relief ties determine whether their rates are remaining (1998). portions com- NSP’s reasonable. See Minn.Stat. ch. 216B plaint Ratemaking were dismissed with quasi-legislative NSP’s assent. is a function. Peoples Natural Gas Co. Minnesota Pub. appeals grant NSP the district court’s Comm’n, (Minn. Utils. 369 N.W.2d summary judgment. alleges It that the dis- 1985). Utilities are to file schedules trict court concluding erred in that NSP’s rates, tolls, with “showing the commission all tariffs, filed with the Minnesota Public Utili- charges tariffs and which it has established (the commission), ties Commission did not * * 216B.05, *.” Minn.Stat. subd. 1 general assume the status of state law. It (1998). Filings by made with the commission alleges further court erred con- utilities in “continue force until amended cluding city’s ordinance was valid public utility changed by or until and not in preempted by conflict with or * * 216B.09, commission *.” Minn.Stat. approved MPUA and its tariffs. subd. 3 The commission’s decisions regard subject “command the same and are ISSUES to the same legis tests enactments of the I. Did the district court in err determin- Minneapolis Ry. lature.” St. v.Co. ing that filed tariffs did not assume the Minneapolis, 251 Minn. general status of state law? (1957) (citation omitted). II. Did the district court err in determin- The district court that: concluded valid, the ordinance was and not NSP Rules 5.1 and 5.3 never assumed the preempted by or in conflict with state law? general they status of law state because any adopted pursuant agency were not

ANALYSIS rulemaking proceeding. purpose Their appeal summary judg On from advising was limited to the MPUC ment, reviewing court determines in whether manner which this would treat all To file these resulting unjust, of its customers. “rules” unreason- able, protections discriminatory without benefit notice rates clear hearing convincing claim opportunity then evidence. they force and effect of have the Co., In re Request Interstate Power vastly overstating purpose state law is (Minn.App.1997) (quoting N.W.2d of these tariffs. and intent Hibbing Taconite Pub. Co. Minnesota Comm’n, (Minn.1980)). Serv. previously This court has held filed tariff Here, the commission could have reason- part of the lawful to be “an inherent rate ably concluded that would NSP Computer charged to consumers position best type determine what of in- Eng’g, Inc. v. Northern Tool & States Power stallation would be most and cost- feasible (Minn.App.1990) provide adequate, effective order to effi- (holding tariff valid and enforce- cient, and reasonable service at reasonable (Minn. 23, 1990). able), May review denied 216B.16, rates. Minn.Stat. subd. Computer Tool court concluded Given the deference to be accorded the com- “recognized tariff had been as a reasonable decision, mission delegation liability by agency limitation of exclusive- to NSP was not unreasonable. ly empowered to make this determination,” upon *5 based the tariffs sur- through changes.

vival several contested rate II. analysis applies The same here. The Id. city NSP asserts that the did not have originally tariffs at issue here were filed with legal authority to enact the ordinance in in the commission 1984. Since time question. NSP further that the ordi- they approved have been reviewed and in nance is conflict preempted by with and through a of commission ratemaking series the MPUA and commission-approved tariffs. recently most in proceedings, 1992. See disagree. We No. MUPC Docket E-002/GR-92-1185 “[Municipalities no have inherent commission, by approved As powers possess only powers such as are product tariffs at not invalid as issue are ” * * * expressly conferred statute or procedural of a defect. necessarily implied therefrom. Northern Falls, States Power Co. v. Granite city asserts that even if the (Minn.App.1990), review invalid, proeedurally tariffs are not tariff sec (Minn. 24, 1991); denied Jan. 14 & see also represents improper tion 5.1 delegation of Minneapolis Ry. St. v.Co. Minne authority from the commission to NSP. The apolis, 502, 507, 40 city Ry. cites Northern Pac. Co. v. State of (1949) (examining powers possessed by Duluth, Minn. ex rel. 208 U.S. city). 341, 345-46, (1908), S.Ct. 52 L.Ed. 630 proposition that the commission could not (1998) Minn.Stat. governs delegate authority place to determine municipal regulatory taxing powers with NSP, utility private ment of lines to inter respect public provides utilities and in However, Ry. merely est. Northern Pac. part: relevant attempts away police states contract Any public utility furnishing utility powers utility through franchises are void as services in enumerated section 216B.02 or against public policy. Id. The case does not streets, occupying highways, pub- or other regulatory deal with decisions agency. property lic municipality may within a be

When the acts in a legisla- [commission] license, required to obtain permit, right capacity allocations, tive as in rate increase terms, or in franchise with accordance balancing both cost conditions, and noncost factors regulatory and limitations of making among public policy choices municipality, including acts of plac- alternatives, upheld will decision be un- ing of distribution lines and facilities un- * * * licenses, less shown to in statutory be excess of derground. existing All rights ac- see also Roswell v. Mountain franchises and other States permits, (10th Tel. 78 F.2d by any public utility municipality & Tel. Cir. or quired 1935) pay- (distinguishing franchises from ex April including the prior to police power over fees, ercise use streets existing not be franchise shall ment of alleys generally accomplished which any respect or in impaired affected resolutions). Thus, ordinances chapter, except of this with re- passage question the first be addressed is whether regula- spect to matters of rate and service * * Minn.Stat. 216B.36 confers the *. tion require undergrounding as a (1998) with 222.37 also deals merely power. a franchise municipal placement part: of a municipality * * * * require underground placement of may Any power company long police lines has been pow considered purpose roads for of con- use See, e.g., er. Northwestern Tel. Exch. v.Co. structing, using, operating, and maintain- * ** 149-50, City Minneapolis, Minn. business, but such for their lines 83 N.W. The Northwestern way so shall be located as in no Tel. court stated and convenience interfere same; city it is not to be doubted that ordinary along council travel or over the and, plenary has sub- extend the in the construction and maintenance * * * wherever, line, surface district the exercise shall company of such discretion, a fair it in- decides that subject regulations to all im- reasonable terests to be any done. posed governing body coun- ty, road town which such addition, specifi Id. In may be. cally subjects to a municipality’s utilities rea respect placement sonable with in Minn. language NSP contends that the *6 Furthermore, right-of-way. of lines in the § placing Stat. 216B.36 about distribution plain language of the Minn.Stat. 216B.36 underground only municipal lines refers to a utility “may a that to be ability franchise, ity’s grant essentially to a a license, permit, right obtain a or franchise contract, requiring undergrounding. See * * Minneapolis Ry., *.” 229 See St. Minn. City Paul S. St. v. Northern Power States of 512-13, (construing at 40 N.W.2d at 360 Co., 26, 29, 288, Minn. 290 189 248 N.W. power as a to license that could (1933) (interpreting ambiguous in a term franchise). through not a If the be abdicated law). Historically, franchise under contract municipali to limit a had intended regulated by agree cities have utilities both ty’s of regulation utilities to that which could through police power. ment and of exercise franchise, accomplished be the additional Minneapolis Ry. City See St. v. Min Co. of license, permit right would have terms (D.Minn.1911) 445, neapolis, 189 F. 452 unnecessary meaningless. Howev been (holding that franchise does not limit the er, construing a to statute we endeavor when city’s ability “regulate to and control meaning. give provisions all carrying of on of manner the business We therefore conclude road, tracks, laying of of use upon confers munici streets, keeping equipment”); palities power to electric distribu Ry. Minneapolis City St. v. Minne Co. of undergrounding through tion either line 512-513, Minn. apolis, 229 at through of or reasonable exercise franchise license, (holding power to police powers. its police power, separate impaired and not franchise, subject jurisdictions but judicially further note several We reasonableness); regulate local utili- recognized power standard of enforceable have ty despite regula- Borough placement Belle Plaine v. statewide Northern of 217, Co., 361, 364, 172 219 tion a PUC. See U.S. West Commu- N.W. (1919) nications, City Longmont, (holding that of v. P.2d municipal regulation Inc. 948 of (Colo.1997) bilateral); 509, (upholding municipal or- utility may be 520 either unilateral or

540 utility Ct.App.1967) (holding requiring its construction of

dinance relocate County utility Denver v. underground); City prohibited be un- facilities cannot or of Co., & Tel. 754 P.2d Mountain States Tel. reasonably regulated by municipality where (Colo.1988) 1172, (requiring utility to 1176 such with facilities are constructed accord relocate its lines due the construction of of standards and meet the standards lines); City Geneseo v. Illinois new sewer statute); Duquesne Light the hot wires Co. Co., 26, N. Utils. 378 Ill. 39 N.E.2d 323, Upper v. Township, Pa. St. Clair 377 (Ill.1941) utility (requiring expired 30 with (1954) 329, 287, utility (holding 105 A.2d 290 inoperational power franchise to its remove subject township regulation was not re- lines); Co. v. Detroit Edison Southeastern garding location and construction of trans- Auth., 28, Michigan Transp. Mich.App. lines) added); (emphasis mission Vandehei (re 295, (Mich.Ct.App.1987) Comm’n, Developers v. P.2d Public Serv. quiring utility to its relocate facilities within 1282, (Wyo.1990) (holding Public Ser- projected “people upon route of mover” vice Commission order con- controlled over transportation authority); order of board; flicting county county order of did Portland, City Northwest Natural Gas utilities). regulate have (Or.1985) Or. 711 P.2d that we should focus on the (requiring utility its to relocate lines to ac provision pro- of Minn.Stat. 216B.36 that light commodate construction rail transit vides: system); Sys., Vermont Gas licenses, All existing permits, franchises Burlington, 153 Vt. A.2d acquired by any (Vt.1989) rights other (requiring gas utility to its relocate municipality prior April lines due to the construction new storm existing lines); including payment and sewer Edmonds v. Gener fees, impaired shall not franchise Wash.App. Tel. 584 P.2d al any respect by passage affected (Wash.Ct.App.1978) (upholding municipal except chapter, respect this with to matters place its lines n underground expense); rate and at its own service but see Crestwood, jurisdiction are Elec. vested in the the com Union Co. * * *1 (Mo.1973) (holding chapter. mission S.W.2d that mu this nicipal requiring undergrounding added.) However, (Emphasis invalid; regu exceeded was [Wjhen general provision in a is in law *7 latory power had been vested Public the provision conflict with a special same Commission); Service Public Serv. Co. v. law, construed, or two shall another be 68, Hampton, Town 120 N.H. 411 A.2d possible, may if given so that effect be 164, (N.H.1980) (municipal power over pro both. If conflict between the two preempted by transmission statute irreconcilable, special provi visions be placing powers regulatory agency) those prevail sion shall and shall be construed (emphasis added); In re Public Serv. Elec. & exception general an provision * * *. to the 358, 233, Gas 35 N.J. 173 A.2d (N.J.1961) (holding that ordinance 645.26, (1998); § undergrounding Minn.Stat. subd. 1 also of electric see transmission Olson, County lines was Itasca invalid as Bd. Comm’rs v. scope outside the Of (where municipal 804, power) added); (emphasis (Minn.App.1985) N.W.2d Cleve Painesville, possible, land Elec. Ilium. give Co. v. a court must effect to all relat- (Ohio App.2d 145,148 10 Ohio statutory 226 N.E.2d provisions). legisla- ed Here the 216B.02, (1998). 1. Rate § is defined as is Minn.Stat. subd. 5 Service fare, every toll, tariff, compensation, charge, defined as classification, natural, them, any rental gas and or de- or mixed elec- manufactured manded, observed, charged, installation, removal, or collected tricity; repair of or any rules, public any any for service and equipment delivering or for or meas- facilities practices, affecting any or contracts such com- uring gas electricity. such fare, toll, rental, tariff, pensation, charge, or 216B.02, § Minn.Stat. subd. 6 classification. granted municipalities specifically legitimate objective. ture related to a We dis- power require utility agree. un- distribution line Moreover, dergrounding. provision re- municipal pre A ordinance is upon by clearly only applies

lied NSP constitutional; sumed the burden is on the licenses, “existing permits, franchises and party attacking validity the ordinance’s * * * rights acquired prior April other prove an ordinance or unreasonable that § By plain 1974.” Minn.Stat. 216B.36. requisite involved, interest statute, language of the re- consequently that the ordinance does not authority of municipalities served the to re- police power come within city. of the quire undergrounding. distribution line Dalsin, St. Paul v. 245 Minn. Finally, if prove N.W.2d To grants police powers, then it unreasonable, ordinance is a complaining granting would be to collect party must show that it “has no substantial permits fees health, licenses relationship safety, mor —effective- so, ly an provision regard- excise tax. If general als Hyland, welfare.” State v. the collection of an tax excise near the (Minn.App.1988) N.W.2d (quoting meaningless. County Claussen, end the statute would be Freeborn 295 Minn. Further, 96, 100, (1972)). general would conflict with the “[I]f principle city’s police powers do not of an reasonableness ordinance is debata ble, power include the the courts will not raise revenue. See interfere with the Joe, legislative Country Eagan, (quoting discretion.” Id. State v. (Minn.1997) Makers, Inc., Modern Box (holding 686-87 (1944)). city’s generate when real motive is to reve- nue, recouping rather than the administra- The requires issue under- of regulation, illegal tive costs the fee is an grounding any permanent extension or tax). replacement 15,000 of distribution lines of Oakdale, volts or less. Minn.Code Ordi- argument NSP’s here assumes that 1997). (July pur- nances 23-41 The stated the statute cannot be read to reserve both pose for the ordinance is to power franchise police powers. and some promote preserve welfare, portion involving of the statute collection orderly development city, assure the of fees states: provide for the and convenience license, permit, right, Under the or fran- of its inhabitants *. chise, utility may obligated by any Oakdale, Minn.Code of Ordinances municipality pay municipality fees (October 1997). defray to raise revenue or increased mu- police asserts al- nicipal accruing costs as a result of regulate lows it to in the interest operations, or both. general prosperity, including convenience Clearly, 216B.36. the statute *8 County aesthetic considerations. See Pine of can be read to revenue-generat- allow for a Resources, Dep’t v. Natural State 280 of ing fee from a separate franchise and a fee (Minn.1979) (holding N.W.2d the permit for a defray to costs. administrative Kettle River Wild Scenic Rivers Ordi- 645.17(1) (1998) See Minn.Stat. (stating a police power nance was valid of exercise that interpreted statutes to are be with the where it had as its basis aesthetic consider- presumption legislature that the not does zoning ations as well as other traditional unreasonable). intend a result that is objectives, safety including public and limit-

Having that determined ing pollution); Naegele Outdoor Adver. v.Co. city Minnetonka, 492, 499, with the statuto Village Minn. of ry authority require utility (1968) to line under- (holding 162 N.W.2d that the grounding, inquiry validity our as to the of fact that the billboard at issue yet is complete. ordinance not a NSP reflected desire to achieve aesthetic ends contends that reasonably the ordinance is not not does invalidate an otherwise valid ordi-

nance); Adver., Naegele City of grounding, Outdoor we do not reach the issue (4th Cir.1988) Durham, Mangold 844 F.2d preemption. Midwest Co. See of (holding that Richfield, aesthetic considerations are Village of (1966) valid basis for of exercise (defining preemption N.W.2d billboards). field”). zoning regulation over of While concept “occupation of as the of position these cases do reflect the that aesth Similarly, legislature specifically when the etic will not oth considerations invalidate an grants authority municipalities, the exer- ordinance, erwise valid none stand for the authority logically of that cannot be seen cise city may proposition regulate public that a to conflict with Northern state law. See utility solely purposes of convenience and Falls, City States Power Co. Granite of We decline invitation to aesthetic value. gener- (stating at 544-45 there is respect municipal law with extend the ally merely no conflict ordinance is where the utilities, public ap of and instead complimentary or in additional and aid and ply public the more traditional interest tests statute). furtherance health, safety, general welfare. Clearly the ordinance and the tariffs con- Exch., Minn. See Northwestern Tel. at city flict. But claim both the and NSP au- 530; 83 N.W. at Holt v. Sauk thority in the “The MPUA. does Rapids, (Minn.App. absurd, impossible not that intend result (Minn. 1997), 24, 1997); Apr. review denied execution, or unreasonable.” Minn.Stat. Hyland, 431 N.W.2d at 872. 645.17(1) (1998). It would be absurd to city clearly Here has included interpret granting conflicting the MPUA safety general as interests the welfare Therefore, authority. to which the extent protect. intended We do there is conflict is also the to which extent reasonably disputed it can believe statutory authority has been exceeded significant present overhead electric lines parties. one of the public, especially hazard to in this cli- already leg- We have determined Utility poles proximity in close mate. specific grant authority islature’s to munic- injuries the likelihood streets increase re- ipalities require utility underground- addition, sulting from traffic accidents. In prevail general grant must over the occasioning improvements street obstructions authority regulate to the commission to ser- replacing relocating utility repairing, while 645.26, vices. See subd. 1. poles risk of increase the accidents. See Therefore, Edmonds, the extent that tariff Furthermore, section P.2d at 461. ordinance, city’s 5.1A conflicts with the downed lines as the result ice wind yield. tariff must only present storms not a hazard on the ground, impact safety also but wel- Similarly, tariff section 5.3A is unen people fare of in their homes to loss of due forceable to that it would the extent power in winter months. on Based these compensation city’s for the valid exercise considerations, we conclude regulate utility line under- placed electric distribution lines to be under- grounding comports under the statute. This reasonably city’s legiti- ground relates to the long-held city may regu that a view mate interest compensation late a without in valid citizenry. of its welfare police power. exercise of its See Detroit Having determined had Edison, 297; Gas, Vermont require undergrounding un 46; Longmont, 571 A.2d at P.2d *9 216B.36, der reasonably ex Gas, 521; at Northwest Natural 711 P.2d at authority, ercised that we must next examine 121; Appalachian City Power Co. how impacts the ordinance NSP’s commis Huntington, 210 158 S.E.2d W.Va. sion-approved tariffs. (W.Va.1974); ex rel. Rich v. State Idaho

Since 81 Idaho P.2d we have determined that the (Id.1959); explicitly granted municipal has New York Tunnel Auth. v. York, require distribution New line under- Consolidated Edison Co. (N.Y.1946); requested or special N.E.2d Where facilities are N.Y. Edmonds, by payment 584 P.2d at 459. The a required municipality and is recog Supreme Court has also Minnesota municipality, not made the excess police legitimate exercise nized that expenditures will responsibility be the injurious may prop power prohibit use residing customers -withinthe mu- [NSP’s] erty compensation. Lachtman without will nicipality and from recovered those N.W. Houghton, Minn. surcharge a or customers rate 1017, 1021-22 approved by other method the Commis- sion. Furthermore, argument that NSP’s argues that it uncompensated perpe

this would NSP should not be surcharge taking approval fails two obtain trate an unconstitutional time munic- each First, ipality special reasons. is drawn requires “[i]f installation. NSP prevent public, broadly de position. duty harm to cites no for this fined, goal, able to achieve this duty. seems avoid rate discrimination is NSP’s taking not occurred.” Zeman v. §§ then has See Minn.Stat. 216B.06-.07. The commis- City Minneapolis, approved sion has tariff section 5.3E and (Minn.1996) Keystone (citing Bituminous NSP is bound it. DeBenedictis, Coal Ass’n v. 480 U.S. 488-93, 1243-46, D E 94 L.Ed.2d C I I N S.Ct. S O 472, (1987)). Second, remedy has a NSP court The district erred when deter- may commission. utilities NSP NSP’s mined that rate tariffs at issue did not request ad that the commission allocate the attain law the status state due to undergrounding ap ditional costs of However, procedural deficiencies. the dis- ratepayers. propriate group of correctly trict court determined the ordi- question that a in was municipality

NSP further contends nance authorized statute. may underground placement reasonably not of The ordinance is related to its compensation objective electric of protecting public lines without because stated requirement such a creates a with preempted by conflict and is in neither nor conflict duty statutory not to NSP’s discriminate as with state law. §§ forth in Minn.Stat.

set 216B.06-.07 Affirmed modified. that, by conferring a NSP citizens, special placement of benefit on its HALBROOKS, Judge (concurring part, in power underground, paying lines without dissenting part). improvement, requires NSP for this agree majority While I with costs of improve- NSP to collect the those NSP’s tariff sections rate 5.1 and 5.3 have ratepayers ments from across the state. law, Thus, of state I that Oak- force conclude ratepayers all outside the of Oak- dale’s ordinance is too paying discriminatory dale broad to be either are rate. reasonably legitimate municipal related to a not While we need decide whether objective or authorized city’s will ordinance result unreason Therefore, respectfully 216B.36. I dissent. able rate discrimination under Minn.Stat. extraordinarily (1998), §§ Oakdale’s ordinance .07 216B.03 and we do note broad. It on does discriminate based statutory remedy NSP has a allows concerns, proximity location of discriminatory lines their to address if rate imposes any, interfering traffic. The city’s duly- with without requirement underground may installation for request enacted ordinance. NSP 15,000 all commission additional com electric distribution volts or allocate costs of regard plying any safety with less ratepayers the ordinance without benefiting given in a installation. from the service. See Minn.Stat. welfare concerns Further, approach specifically findings 216B.16. This out no that un- Oakdale made 5.3E, in tariff which derground lined section installation of lines would electric *10 part: public relevant See U.S. serve the stated interests. Longmont, (Minn.App.1990), v. review denied West Communications of (Colo.1997) (Minn. 1990). (listing May fac- 521-22 948 P.2d tors to its determination the rea- relevant Agency powers light must be construed municipal ordinance sonableness of they purpose granted. for which were underground). lines Al- relocation Management ex rel. Board v. State Waste may though it be true overhead electric Bruesehoff, (Minn.App. 343 N.W.2d present places, a hazard in some lines 1984). charged commission is with the developed us is not on this record before responsibility balancing public need for fact, argued In has that under- issue. adequate, efficient reasonable service significantly ground more difficult lines are against utility’s to cost of need meet the especially in months repair, to the winter providing profit. a fair service earn ground is when the frozen. 216B.16, (1996); § Minn.Stat. subd. 6 Com spite In fact that of the the ordinance cites Tool, puter 453 N.W.2d at 573. The stated public safety general as its ob- welfare purpose chapter provide is to Oakdale, jectives, see Minn.Code Ordi- adequate and reliable services reason- (1997), § it is not to nances tailored rates, able consistent with financial objectives. assuming Even meet those over- requirements public economic utilities present head electric lines the hazards men- and their need to construct to facilities majority, tioned this is ov- ordinance provide such services *. ordinance, erly broad. Under Oakdale’s (1996). § interpret Minn.Stat. 216B.01 To building, distribution line to a commercial § granting Minn.Stat. as 216B.36 broad traveling private property across and not in require undergrounding to new con- any way activity, public road or must near chapter’s general purpose flicts with the underground. This no be installed bears re- localizing regulatory powers in commis- health, safety general lationship public to (1996); sion. Minn.Stat. 216B.01 see also goes beyond welfare. The ordinance what is (1996) (asserting § 645.16 Minn.Stat. necessary protect public. Village to See legislative may intent be determined Independent Blaine v. Dist. No. Sch. law, (1965) necessity occasion and for the and the 138 N.W.2d attained); object to be subject (holding that to munici- utilities are (1996) (declaring complete that the MPUA is palities’ reasonable exercise of itself, inappli- and that other statutes are protect public). to the consumer and the In- deed, cable to the utilities only seems me the conceivable commission). purpose for a this broad aesth- etic, agree majority and I that mu- general provision When a of law conflicts nicipalities no regulate have util- specific provision, with a the two should be ities for aesthetic ends. construed, possible, give if effect to both. assuming 645.26, gener-

Even overhead lines are subd. 1 In order hazardous, ally this give provisions ordinance exceeds all meaning, Oak- of the statute statutory authority. dale’s Northern interpreted only See section 216B.36 must be Falls, States Power Co. pre-existing police powers Granite reserve of mu- (hold- (Minn.App.1990) nicipality underground placement ing municipalities only powers part have as of its statute), granted them regulate public property. review denied the streets and (Minn. 1991). Jan. To interpret See Minn.Stat. The exercise municipal power require utility powers line un- of those to that which is limited dergrounding broadly as reasonably does related to the interests of requires health, ignore us to the commission’s stat- welfare. utory authority to regulate Hyland, utilities. See See State (1996 Supp.1997); (Minn.App.1988). Minn.Stat. ch. 216B & Since here see Computer Eng’g, authority, also Tool & exceeds that it should be declared Northern enjoined. and its States invalid enforcement

545 majority foreign necessary are back-fill authorities cited the trench for under- contrary. persuasive grounding. Finally, legisla- Id. the Colorado passed expressly ture had providing statute upheld courts have local Instances where municipal regulation over the location of utili- utility placement of line have been 519; ty poles. Id. at see also Colo.Rev.Stat. major pub limited incidental § 31-15-702 projects. lic works See Detroit Edison Co. v. Although precedent there is no for munici Auth., Michigan Transp. Southeastern 161 pal regulation utility of placement line (Mich. 28, 295, Mich.App. 410 296-97 assumes, broad many as Oakdale courts have Ct.App.1987); Sys., City Vermont Gas invalidated local requiring utility ordinances 210, 45, Burlington, 153 Vt. A.2d 46 of undergrounding. See Elec. Cleveland (Vt.1989); City County & Denver v. of Painesville, City Illum. Co. v. 10 Ohio of Co., Mountain States Tel. & Tel. 754 P.2d (Ohio 85, 145, 149 App.2d 226 N.E.2d Ct.App. 1172, (Colo.1988); Northwest Natural 1967); Developers Vandehei v. Public Serv. Portland, 291, City v. Gas 300 Or. of Comm’n, 1282, (Wyo.1990); P.2d 1285-87 119, 121 (Or.1985); Appalachian P.2d Public Hampton, Serv. Co. v. Town 240, City Huntington, Co. v. 158 W.Va. 68, 164, (N.H.1980); N.H. 411 A.2d Un 471, (W.Va.1974); City S.E.2d Phila Crestwood, City ion Elec. v. Co. Comm’n, delphia Pennsylvania Pub. Util. 480, (Mo.1973); S.W.2d 483-84 In re Public (Pa.1972); 449 Pa. 296 A.2d 808-09 Co., Elec. Serv. & Gas 35 N.J. 173 A.2d New York Tunnel Auth. v. Consolidated (N.J.1961). 233, 239 Edison N.Y. 68 N.E.2d Oakdale’s reasonably ordinance does not (N.Y.1946); City Edmonds v. Gen legitimate municipal objective. relate to a Co., Inc., eral Tel. 21 Wash.App. The ordinance also exceeds Oakdale’s statu- (Wash.Ct.App.1978). P.2d Were tory authority. Therefore, I would reverse Oakdale’s ordinance related to a works judgment. the trial court’s project, undertaken the interest of welfare, health and the issue before us would significantly different. See New Orleans Comm’n,

Gaslight Drainage v.Co. 197 U.S.

453, 460-61, 25 S.Ct. 49 L.Ed. 831

(1905) (holding imposition gas on company of relocating gas pipes

the costs of to accommo date construction municipal drainage sys K.R., Appellant, tem was an exercise of the community). essential health SANFORD, al., Defendants, Brandon et

Furthermore, the recent Colorado Su- decision, preme Longmont, Court Committee, Inc., First Avenue d/b/a factually both legally distinguishable Entry, Respondent. & 7th St. First, from the instant case. that case in- volved an underground- No. C2-98-1377. utility conjunction with a Appeals Court of Minnesota. project city-owned

works undertaken utility, undergrounding electric its own 3, 1999. Feb. Longmont, lines. 948 P.2d at 513. Second, only the ordinance under- grounding for those lines that shared

poles city-owned Third, lines. Id. city specific findings made as to how the health,

undergrounding would further

safety, city and welfare of residents. Id. at Fourth,

521. agreed to excavate and

Case Details

Case Name: Northern States Power Co. v. City of Oakdale
Court Name: Court of Appeals of Minnesota
Date Published: Feb 2, 1999
Citation: 588 N.W.2d 534
Docket Number: C3-98-867
Court Abbreviation: Minn. Ct. App.
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