Lead Opinion
OPINION OF THE COURT
Thе issue on appeal is whether a utility company violates its duty to provide reasonable and adequate service as required by Section 1501 of the Public Utility Code, 66 Pa.C.S. § 1501, where extensive damage is caused to a rental property after the utility company disconnects electric service for the property at a tenant/ ratepayer’s request without first notifying the landlord of the disconnection, where the landlord is not the ratepayer for the electric service. Because we find that a utility company does not violate its statutory duties in such a situation, we reverse the order of the Commonwealth Court and reinstate the order of the Pennsylvаnia Public Utility Commission.
The relevant facts are that appellees, Robert and Carola Rohrbaugh, owned a single-family residential property located on West Pine Grove Road in Pine Grove Mills, Centre County, Pennsylvania. Appellees rented this property to other individuals as a residential home. The electric service to the property was provided by appellant, West Penn Power Company (“West Penn”). Appellees do not personally reside in an area serviced by West Penn.
In 1983, West Penn adopted a “landlord/tenant agreement” policy. The policy allowed landlords to sign an agreement with West Penn which permitted West Penn to either disconnect service or put the service in the landlord’s name if the tenant notified West Penn that the tenant no longer desired electric service. This policy was instituted because West Penn was experiencing financial losses when tenants would vacate a residence and West Penn was forced to continue service
In 1988, West Penn instituted a strict practice of enforcing its landlord/tenant agreement policy by disconnecting service at a tenant’s request if there was no signed agreement on file’ with the landlord. West Penn admits that it never gave its customers advance notice of its plan to strictly enforce the policy.
In July of 1988, appellees rented their property to a tenant. Pursuant to the lease agreement, the tenant was responsible for paying all utility bills, including electricity. The tenant occupied appellees’ rental property from July 27, 1988 until October 31, 1989, when the tenant vacated the premises under the threat of eviction by appellees for non-payment of rent. During this entire period, the electric bills were in the tenant’s name.
On December 4, 1989, the tenant requested,that West Penn disconnect the electric service at the property that she was renting from appellees.
On December 7, 1989, West Penn proceeded to appellees’ rental property and disconnected the electric supply line to the property. Consequently, the heating system at the property was unable to function since it was dependent on electric service to operate. At the time of disconnection and for several days thereafter, temperatures in the area surrounding appellees’ rental property reached below freezing. As a result of the freezing temperatures and the inability of the heating system to operate, the pipes and radiators burst, causing water to spill throughout the house and damaging the floors, floor coverings, walls, ceilings, plumbing fixtures and electrical wiring. Appellees did not discover the damage until they visited the property on December 11, 1989. This date was also the first time that appellees discovered that West Penn had disconnected the electric service.
On November 21, 1990, appellees filed a civil complaint against West Penn in the Court of Common Pleas of Centre County. The complaint alleged that West Penn’s disconnection of service without notification to them as owners of the property was negligent, unreasonable and a violation of PUC regulations. Thus, appellees demanded monetary damages from West Penn in order to compensate them for the damages that the house incurred as a result of the service disconnection.
On July 23,1991, West Penn answered appellees’ complaint. One affirmative defense raised by West Penn in its answer was that the complaint raised issues within the sole province of the PUC. West Penn then filed a motion for bifurcation requesting that the issues concerning the reasonableness of its service be referred to the PUC while the issues concerning
On November 15, 1992, appellees filed a complaint with the PUC in which they simply attached their civil complaint and requested the PUC to rule on liability issues. After conducting hearings, an administrative law judge (“ALJ”) ordered West Penn to cease strict enforcement of its landlord/tenant agreement policy until it obtained PUC approval of this policy as part of its tariff, pursuant to 52 Pa.Code § 53.25.
West Penn filed exceptions to the ALJ’s ruling with the PUC. While the PUC believed that West Penn had exercised poor judgment in disconnecting service during a period of extreme temperatures, the PUC reversed the ALJ and dismissed appellees’ complaint on the basis that the Public Utility Code and related regulations did not obligate West Penn to notify non-ratepaying landlords such as appellees that service was being disconnected at their property. The PUC determined that Wеst Penn had furnished reasonable and adequate service to its ratepayer, the tenant, when it discontinued service to the property at the tenant’s request.
On July 12, 1995, the Commonwealth Court, in a published opinion, reversed the PUC and reinstated the order of the ALJ. In doing so, the Commonwealth Court found that West
This Court granted allocatur in order to determine whether a utility company violates its duty to provide reasonable and adequate service as required by Section 1501 of the Public Utility Code where the utility company disconnects electric service for the property at a tenant/ratepayer’s request without first notifying the landlord, who was not the ratepayer for the electric service and who had not entered into a contractual agreement whereby service could be continued with the account transferred to the landlord’s name after the tenant requested termination. The resolution of this issue turns on longstanding principles of statutory construction and agency law.
Appellate review of a PUC order is limited to determining whether a constitutional violation, an error of law or a violation of PUC procedure has occurred and whether the necessary findings of fact are supported by substantial evidence. 2 Pa.C.S. § 704. Appellees contend that the PUC committed an error of law by interpreting section 1501 to allow a public utility to terminate service without providing notice to a nonratepaying landlord. We disаgree.
Section 1501 of the Public Utility Code provides:
Every public utility shall furnish and maintain adequate, efficient, safe, and reasonable service and facilities, and shall make all such repairs, changes, alterations, substitutions, extensions, and improvements in or to such service and facilities as shall be necessary or proper for the accommodation, convenience, and safety of its patrons, employees and the public. Such service also shall be reasonably continuous*206 and without unreasonable interruptions or delay. Such services shall be in- conformity with the regulations and orders of the commission.
66 Pa.C.S. § 1501. The PUC has been expressly granted the power and responsibility to “prescribe as to service
A utility may discontinue service without prior written notice under the following circumstances:
(1) Ratepayer’s residence. When a ratepayer requests a discontinuance at his residence, when the ratepayer and members of his household are the only occupants.
52 Pa.Code § 56.72 (emphasis added). A ratepayer is defined by PUC regulations as:
[A] person in whose name a residential service account is listed and who is primarily responsible for paymеnt of bills rendered for the service. For the purposes of establishing*207 credit, this term includes a transfer of service from a residence or dwelling within the service area of the utility or the reinstitution of service at the same location within 60 days following termination or discontinuance of service.
52 Pa.Code § 56.2.
Thus, the unambiguous language of 52 Pa.Code § 56.72, concerning the disconnection of residential service, demonstrates that a public utility can discontinue service without prior written notice when the ratepayer requests discontinuance of service.
Here, the regulation at issue was adopted pursuant to the Commission’s legislative rule-making power. See 66 Pa. C.S. § 1504(1), supra. Thus, we must decide whether the regulation was (a) within the PUC’s granted power; (b) issued pursuant to proper procedure, and (c) reasonable. Girard School District, supra,
Accordingly, the Commonwealth Court exceeded its proper scope of review in holding that the PUC had erred by determining that the Public Utility Code and related regulations did not obligate West Penn to notify non-ratepaying landlords such as appellees that service was being disconnected at their property. The order of the Commonwealth Court is reversed and the order of the PUC is reinstated.
Notes
. Appellees never signed such an agreement.
. A tariff is defined in the Public Utility Code as "all schedules of rates, all rules, regulations, practices, or contracts involving any rate or rates, including contracts for interchange of service, and, in the case of a common carrier, schedules showing the method of distribution of the facilities of such common carrier.” 66 Pa.C.S. § 102.
. The record fails to reveal why a lapse of approximately one month existed between when the tenant vacated the rental property and when she requested that the electric service be disconnected.
. This Court approved of such a bifurcated procedure in Elkin v. Bell Tel. Co.,
. 52 Pa.Code § 53.25 provides that:
[A] utility shall set forth all rules and regulations which apply generally to all classes of service covered by the tariff, and definitions of technical terms and abbreviations used in the tariff, the meanings of which are not common knowledge and cannot be gathered exactly from the context in which used. Where practicable, special rules applying to a given class of service shall be included in the rate schedule covering the particular class.
. For purposes of the Public Utility Code, the term "service” encompasses numerous activities performed by a public utility company. The term "service” is defined by statute as follows:
Used in its broadest and most inclusive sense, including any and all acts done, rendered, or performеd, and any and all things furnished or supplied, and any and all facilities used, furnished, or supplied by public utilities, or contract carriers by motor vehicle, in the performance of their duties under this part to the patrons, employees, other public utilities, and the public, as well as the interchange of facilities between two or more of them----
66 Pa.C.S. § 102.
. The PUC regulations distinguish between the discontinuance and termination of service. The discontinuance of service involves "the cessation of service with the consent of the ratepayer and otherwise in accordance with § 56.72 (relating to discontinuance of service)." 52 Pa.Code § 56.2. The termination of service involves the "cessation of service, whether temporary or permanent, without the consent of the ratepayer.” Id. The parties do not dispute that the present dispute involves the discontinuance of service since the ratepayer, the tenant, requested that service be discontinued.
. The dissent urges that § 56.72(1) is not applicable to this matter because the ratepayer technically was no longer residing in the property at issue when she sought termination of service on December 4, 1989. However, the Commonwealth Court characterized the record in this matter as follows:
The underlying facts as found by the ALJ were adopted by the PUC and are not disputed. The Rohrbaughs owned a residential rеntal property that they rented to Ethel Bisbicos. On December 4, 1989, Biscopos in her capacity as tenant and ratepayer of record telephoned West Penn and requested that electric service be disconnected....
We do not believe that it is appropriatе for this Court to create a dispute over whether the termination of service in this matter comported with § 56.72(1) when the parties themselves have determined that compliance with § 56.72(1) is not at issue, have not raised that issue herein, and thus have not tested the Commonwealth Court’s characterization of the record which would indicate that there was compliance with § 56.72(1).
. The legislature and the PUC have enacted provisions concerning notice requirements to be given to a landlord/ratepayer when service is terminated at the residence where service is in the name of the landlord. See 66 Pa.C.S. § 1521, et seq., and 52 Pa.Code § 56.121. These provisions are not applicable herе since service was never placed in appellees' name.
Dissenting Opinion
dissenting.
The majority concludes that a utility company does not violate its statutory duty to provide reasonable and adequate service as required by Section 1501 of the Public Utility Code, 66 Pa.C.S. § 1501, where extensive damage is caused to a rental property after the utility company disconnects utility service for the property at a ratepayer’s request in the dead of winter without first notifying the landlord of the disconnection. In so doing, the majority reverses the order of the Commonwealth Court which found that West Penn Power Company (“West Penn”) violated its statutory duty to provide reasonable and adеquate service to the Appellees pursuant to 66 Pa.C.S. § 1501. I respectfully disagree with the majority’s conclusion, and instead would affirm the order of the Commonwealth Court, based on West Penn’s failure to follow the applicable notice procedures set forth at 52 Pa.Code § 56.72 (section 56.72) before discontinuing its provision of electric service to Appellees’ property on December 7,1989.
Section 56.72, which governs the procedures that utility companies must follow before discontinuing utility service at a specific property, provides as follows:
A utility may discontinue service without prior written notice under the following circumstances:
(1) Ratepayer’s residence. When a ratepayer requests a discontinuance at his residence, when the ratepayer and members of his household are the only occupants.
(2) Other premises or dwellings. Other premises or dwellings shall be as follows:
(i) When a ratepayer requests discontinuance at a dwelling other than his residence or at a single meter multifamily residence, whether or not his residence but, in either case, only under either of the following conditions:
(A) The ratepayer states in writing that the premises are unoccupied. The statement shall be on a form conspicuously bearing notice that information provided by the ratepayer will be relied upon by the Commission in administering a system of uniform service standards for public utilities and*211 that any false statements are punishable criminally. When the ratepayer fails to provide a notice, or when the ratepayer has falsely stated the premises are unoccupied, the ratepayer shall be responsible for payment of utility bills until the utility terminates service.
(B) The occupants affected by the proposed cessation inform the utility orally or in writing of their consent to the discontinuation.
(ii) Where the conditions set forth in subparagraph (i) have not been met, the utility, at least 10 days prior to the proposed termination, shall conspicuously post notice of termination at the affected premises.
(A) When the premises is a multi-family residence, notice shall also be posted in common areas.
(B) Notices shall, at a minimum, state: the date on or after which termination will occur, the name and address of the utility; and the requirements necessary for the occupant to obtain utility service in the occupant’s name. Further termination provisions of this chapter except § 56.97 (relating to procedures upon ratepayer or occupant contact prior to termination) do not apply in these circumstances.
(C) This section does not apply when the ratepayer is a landlord. See §§ 56.121—56.126 (Reserved).
52 Pa.Code. § 56.72.
For the reasons that follow, I disagree with the majority’s determination that West Penn did not violate its statutory duty to provide reasonable and adequate utility service by failing to provide Appellees with advance notice of the disconnection of electric service to their property because they were not statutorily required to do so pursuant to 52 Pa.Code § 56.72(1).
The majority summarily concludes that because the tenant in the instant case was the ratepayer for Appellees’ rental property, and because the tenant requested West Penn to disconnect the electric service that it provided to Appellees’ rental property, West Penn was permitted, pursuant to 52 Pa.Code § 56.72(1), to discontinue its provision of electric
The term residence is not defined in the Pennsylvania Utility Commission’s regulations. The Statutory Construction Act, at 1 Pa.C.S. § 1903(a), provides that the “[w]ords and phrases [of a statute] shall be construed according to rules of grammar and according to their common and approved usage .... ” This Court has “generally used dictionaries as source material for determining the common and approved usage of a term.” Fogle v. Malvern Courts, Inc.,
In the instant case, West Penn did not receive a signed statement from the tenant verifying that Appellees’ property was unoccupied. Nor could West Penn secure oral or written consent from the occupants of Appellees’ property to discontinue the electric service there, since there were no occupants of the house at that time. Therefore, pursuant to 52 Pa.Code § 56.72(2)(ii), West Penn was obligated to conspicuously post notice of termination at Appellees’ property at least 10 days prior to the proposed disconnection of service, which notices would have to state the date on which the electric service was to be disconnected, its name and address, and information on how Appellees could obtain utility service at the property in their names. 52 Pa.Code § 56.72(2)(ii), (2)(ii)(B).
As the above discussion indicates, West Penn had a statutory duty to post conspicuous ten-day notices at Appellees’ property before discontinuing its provision of electric service to the property. By failing to satisfy its statutory duty to post the notices pursuant to 52 Pa.Code § 56.72(2)(ii), West Penn also failed to provide “adequate, efficient, safe and reasonable service and facilities” аs is “necessary or proper for the accommodation, convenience, and safety of its patrons, employees and the public.” 66 Pa.C.S. § 1501. While the Commonwealth Court did not consider the possibility that West Penn violated its statutory notice obligations under 52 Pa. Code § 56.72, it nevertheless found that West Penn violated its statutory duty to provide adequate and reasonable service to the Appellees under 66 Pa.C.S. § 1501 based on its failure to notify them of the impending discontinuation of electric service at their property. Accordingly, I would affirm the order of the Commonwealth Court, albeit on a different basis.
. In the eighth footnote of its opinion, the Majority takes issue with my detеrmination that 52 Pa.Code § 56.72(1) is not applicable to this matter. In short, the Majority asserts that Appellees have conceded the applicability of section 56.72(1), and that the Court is therefore constrained to accept the applicability of the section. However, my review of the record indicates that nowhere do Appellees expressly concede the applicability of section 56.72(1). Rather, Appellees argue in their brief to this Court that even if section 56.72(1) is applicable, and even if West
. Appellee Robert Rohrbaugh testified at the March 9, 1993 heаring before the ALJ that he instituted eviction proceedings against the tenant in September of 1989. (N.T., 3/9/93, at 34.)
. It is unclear from the record whether or not the tenant informed West Penn that she was no longer residing at Appellees’ rental property when
