STATE of Missouri ex rel. MOGAS PIPELINE LLC, Respondent, v. MISSOURI PUBLIC SERVICE COMMISSION, Appellant.
No. SC 91968.
Supreme Court of Missouri, En Banc.
April 17, 2012.
366 S.W.3d 493
Gerard T. Carmody, David H. Luce, and Teresa Dale Pupillo, Carmody MacDonald PC, St. Louis, Leland B. Curtis and Carl Lumley, Curtis, Heinz, Garrett & O‘Keefe PC, St. Louis, for MoGas.
LAURA DENVIR STITH, Judge.
MoGas Pipeline, LLC, seeks review of the Missouri Public Service Commission‘s (PSC) order denying MoGas’ request that the PSC terminate its intervention in matters pending before the Federal Energy Regulatory Commission (FERC). Be-
I. FACTUAL AND PROCEDURAL BACKGROUND
MoGas operates an interstate natural gas pipeline delivering natural gas to customers in Missouri. The company was organized formally in 2008 after the FERC approved the merger of three affiliated gas pipeline systems. Prior to the merger, two of MoGas’ predecessors, Missouri Gas Company, LLC, and Missouri Pipeline Company, LLC, operated pipelines only in Missouri; therefore, they were subject to the jurisdiction of the PSC. MoGas’ third predecessor company, Missouri Interstate Gas, LLC, operated an interstate natural gas pipeline and, pursuant to the federally enacted Natural Gas Act, was subject to the jurisdiction of the FERC.1 See Schneidewind v. ANR Pipeline Co., 485 U.S. 293, 300-01, 108 S.Ct. 1145, 99 L.Ed.2d 316 (1988) (“The [Natural Gаs Act] confers upon FERC exclusive jurisdiction over the transportation and sale of natural gas in interstate commerce for resale.“). Because the merger created a single natural gas pipeline system with interstate operations, MoGas’ entire system became subject to FERC‘s jurisdiction in 2008.
Throughout 2007 and 2008,2 MoGas submitted various petitions to the FERC for approval including, as relevant here, proposals to construct and operate new compression facilities on its systems and to modify its gas tariffs. In both instances, the PSC intervened as a party in the related FERC proceedings tо protest MoGas’ proposals. In September 2008,3 MoGas filed a petition with the PSC alleging that the PSC did not have authority to intervene in matters before the FERC. As such, the petition requested that the PSC terminate its intervention in FERC cases concerning MoGas’ operations. The PSC denied MoGas’ petition by an order issued in July 2009.
After the PSC denied MoGas’ subsequent application for a rehearing, MoGas filed a petition for writ of review in the circuit court of Cole County. In March 2010, the circuit court entered judgment holding the PSC‘s July 2009 order unlawful. The court reversed the order and remanded the cause to thе PSC for further action. The PSC appeals the circuit court‘s judgment.
II. STANDARD OF REVIEW
“This Court reviews the decision of the PSC rather than that of the circuit court.” State ex rel. Praxair, Inc. v. Missouri Pub. Serv. Comm‘n, 344 S.W.3d 178, 184 (Mo. banc 2011). “[T]he appellate standard of review of a PSC order is twopronged: ‘first, the reviewing court must determine whether the PSC‘s order is lawful; and second, the court must determine
“The lawfulness of a PSC order is determined by whether statutory authority for its issuance exists, and all legal issues are reviewed de novo.” AG Processing, Inc., 120 S.W.3d at 734. A PSC order is reasonable “where the order is supported by substantial, competent evidence on the whole record; the decision is not arbitrary or capriсious[;] or where the [PSC] has not abused its discretion.” Praxair, Inc., 344 S.W.3d at 184, quoting Envtl. Utils., LLC v. Pub. Serv. Comm‘n, 219 S.W.3d 256, 265 (Mo.App.2007). This Court need not reach the issue of an order‘s reasonableness if it finds the order unlawful. See State ex rel. Util. Consumers’ Council of Missouri, Inc. v. Pub. Serv. Comm‘n, 585 S.W.2d 41, 47 (Mo. banc 1979).
III. THE PSC‘S ORDER WAS UNLAWFUL
A. The PSC‘s Authority is Limited to that Granted It by the Legislature and Not Preempted by Congress
The PSC “is a creature of statute and can function only in accordance with” its enabling statutes. State ex rel. Monsanto Co. v. Pub. Serv. Comm‘n, 716 S.W.2d 791, 796 (Mo. banc 1986). Its “powers are limited to those conferred by statutes, either expressly, or by clear implication as necessary to carry out the powers specifically granted.” Util. Consumers’ Council of Missouri, Inc., 585 S.W.2d at 49; see also
Though
The powers and duties of the PSC are set forth principally in chapter 386. As pertains to natural gas,
As the Missouri legislature has recognized in
B. The Missouri Legislature Has Neither Expressly Nor by Clear Implication Authorized the PSC to Intervene in FERC Proceedings
Though the PSC alleges that several provisions within both state and federal law can be interpreted to vest the PSC with authority to intervene in FERC proceedings, for the reasons detailed below, the PCS‘s arguments are unavailing.
1. Section 386.210.1
First, the PSC cites
The [PSC] may confer in person, or by correspondence, by attending conventions, or in any other way, with the members of the public, any public utility or similar commission of this and other states and the United States of America, or any official, agency or instrumentality thereof, on any matter relating to the performance of its duties.
(emphases added). The PSC asserts that because
The PSC‘s argument depends entirely on interpreting the word “confer” to include intеrvention by the PSC as a party in a regulatory proceeding of another state or the federal government. The PSC cites no published case or other direct authority of any kind in support of this interpretation of the word “confer.” Indeed, it concedes that this is a matter of first impression and that were this Court to interpret the PSC‘s authority to confer with other commissions to include the power to intervene, it would be the first court to do so.
The PSC nonetheless says that this Court should find intervention as a party in a federal regulatory proceeding is a form of “conferring” with that federal regulatory body because some other state public utility commissions also intervene with no more authority than this and, so, the PSC also should be permitted to do so.
But the PSC admits that the authority of these other commissions to intervene has not been challenged, just as the authority of Missouri‘s PSC to do so was not challenged until the instant case, nor has the PSC cited any governing authority from other state commissions specifically interpreting the word “confer” to encompass intervention as a party in FERC proceedings. The PSC‘s power and authority proceeds from Missouri statutes. While a review of the reasoning of other states in permitting such intervention would have been informative had there been any such cases, there are none, and the unchallenged conduct of other state regulatory agencies provides no au-
In considering whether the word “confer” as used in
The verb “confer” means to contribute, to compare, or “to hold conversation or conference ... typically on important, difficult, or complex matters.” Webster‘s Third New International Dictionary 475 (1993). None of these terms encompass or overlap the meaning of the term “intervene,” which means “to become a party to an action or other legal proceeding begun by others for the protection of an alleged interest.” Id. at 1183.
“Intervention” is a legal term, however, so review of the meaning of “confer” and “intervene” in legal dictionaries might be expected to be more helpful. Black‘s Law Dictionary does not define the word “confer” but defines “intervene” as “[t]he entry into a lawsuit by a third party who, despite not being named a party to the action, has a personal stake in the outcome.” Id. at 897 (9th ed.2009). Other legal dictionaries draw a clear distinction between the terms “confer” and “intervene.” See, e.g., W. Statsky, West‘s Legal Thesaurus/Dictionary 168, 424 (1986) (defining “confer” as “to consult” and “intervene” as “interfere” or “encroach“).
Synonyms of “confer” have been expressed variously as “[c]ompare notes, discuss, deliberate, discourse, talk, talk over, consult, palaver, confide, parley, advise counsel, negotiate,” West‘s Legal Thesaurus/Dictionary at 168, and as to advise, compare opinions, consult with, interchange views and talk over. W. Burton, Legal Thesaurus 98 (1980). The synonyms of “intervene” are “become a party to an action,” “intercede” and “step in.” Id. at 294. As is evident, the term “confer” does not include within its definition or its synonyms the word “intervene” or any similar concept, and visa versa.
Moreover, section 386.210 itself indicates that it uses the term “confer” in the sense of “communicate,” for
Nowhere in these definitions is there support for the PSC‘s view that in permitting the commission to “confer” or “communicate” with the FERC,
Parties who appear at oral argument or who file briefs are not “conferring” with the court. One who seeks to intervene before the FERC in order to file a brief or to engage in oral argument is not “conferring” with the FERC in any normal sense of the word. It is seeking affirmаtive relief; it is obtaining a stake in the controversy. If the PSC simply wishes to communicate its views to the FERC, it would do so not as a party, but as an interested body, in a role akin to amicus curiae. But the PSC wants to do more than this; it wishes the benefit of being a party because it believes this would be beneficial to Missouri consumers. To the extent this is true, the PSC should apply to the legislature for authority to intervene in FERC proceedings—and indeed, the parties indicate that it is in the course of seeking such express authority.
Because “confer” carries none of the connotations of powеr and control associated with intervention, the right to confer with the FERC given the PSC by
2. Section 386.210.7
The PSC asserts that even if
The [PSC] may make joint investigations, hold joint hearings within or without the state, and issue joint or concurrent orders in conjunction or concurrence with any railroad, public utility or similar commission, of other states or the United States of America, or any official, agency or any instrumentality thereof....
The PSC‘s argument ignores the distinction between being a party to an action and being the adjudicator of that action. Implicit in the use of the word “joint” is that the PSC must be acting in concert with its counterpart commission in conducting these investigations or hearings. See Black‘s Law Dictionary 913 (9th ed.2009) (defining “joint” as “combined, united, or sharing with another“); W. Statsky, West‘s Legal Thesaurus/Dictionary 436 (1986) (defining “joint” as “[s]hared by or between two or more” and listing as synonyms the words “collaborative, combined, concerted, common, acting in common, allied, united“).
When the PSC intervenes in a FERC proceeding, it does not intervene as a second judge, sitting with the FERC and
A party and a judge do not “jointly” investigate or hold hearings, any more than a party appearing at oral argument in this Court is holding a hearing “jointly” with this Court. The party appears at a hearing and presents a case, which the court adjudicates. Similarly, while
3. Sections 386.120.4 and 386.071
In the absence of any other statutory provision granting the PSC power to intervene in matters before the FERC, the PSC suggests that the fact that it has the authority to “sue and be sued in its official name,” see
The PSC‘s argument fails to acknowledge that it cannot direct its general counsel to engage in an activity the legislature has not authorized the PSC itself to undertake. Stated differently, the general сounsel‘s authority under
IV. FEDERAL LAW
Finally, the PSC notes that
V. CONCLUSION
For the reasons set forth above, this Court holds that the PSC has no authority to intervene in matters pending before the FERC. Finding that no remand to the PSC is necessary, this Court modifies the circuit court‘s judgment, pursuant to Rule 84.14, to eliminate that requirement. As modified in this manner, the circuit court‘s judgment is affirmed.
BRECKENRIDGE and FISCHER, JJ., and PAGE, Sp.J., concur.
DeMARCE, Sp.J., dissents in separate opinion filed.
TEITELMAN, C.J., and DRAPER, J., concur in opinion of DeMARCE, Sp.J.; RUSSELL and PRICE, JJ., not participating.
KARL DeMARCE, Special Judge, dissenting.
Because the principal opinion denies the Public Service Commission the full range of action contemplated by
Sections 386.210 through 386.380 address the powers and duties of the PSC.
In reaching the conclusion that
“Moreover, section 386.210 itself indicates that it uses the term ‘confer’ in the sense of ‘communicate,’ for section 386.210.2 refers collectively to the various ways of conferring with the public or other commissions permitted in section 386.210.1 as ‘communications.’ ‘Communication’ is ‘the act or action of imparting or transmitting’ and the ‘interchange of thoughts or opinions.’ Webster‘s Third New International Dictionary 460 (1993); see also Black‘s Law Dictionary 316 (9th ed.2009) (defining ‘communication’ as an ‘expression or exchange of information by speech, writing, gestures, or conduct‘).”
Id. at 498. Further, in footnote 7, the principal opinion recognizes, “Sections 386.210.3 and 386.210.4 also use the term ‘communication’ to describe the interaction permitted by section 386.210.1.”
Having set forth the very broad definition of “communication” found in Webster‘s and Black‘s, the principal opinion then proceeds effectively to narrоw that definition by concluding that intervention as a party in litigation is not a form of “communication,” stating: “Intervening parties do more than communicate, converse, discuss, consult, or engage in an interchange of opinions about pending proceedings.
The principal opinion thereby confuses the purpose of communication with the forms that communicаtion may take. Obviously, the purpose of intervention is to persuade, or at least to influence, the decision-maker, in the hope of making a difference as to the outcome of the case. This does not make intervention any less a form of communication, since persuasion is often a primary goal of any attempt to communicate. The various activities associated with intervention—filing pleadings and motions, presenting evidence, examining witnesses, engaging in oral argument, submitting briefs—are all designed and calculated to impart information, data, and opinions to the adjudicator. This goes to the very heart of the Webster‘s and Black‘s definitions of “communication” relied upon by the principal opinion.
Moreover, intervention is the precise form of “communication” that the intended recipient, the FERC, expects and invites from a state utility regulator such as the PSC, with regard to a formal contested proceeding. See
The verb “confer,” and the related noun “conference,” often connote a very formal setting, in which detailed notes or minutes may be kept, or a verbatim record made. In the context of formal adjudication, it may not be the most common usage to suggest that parties to a proceeding are “conferring” with the decision-maker. Yet one readily may point to exceptions. When attorneys approach the court during trial to discuss an issue of law, procedure, or evidence, it commonly is referred to as a “bench conference.” When attorneys meet with the court to finalize the instructions to be given to a jury, it commonly is referred to as an “instruction conference.” These examples serve only tо demonstrate further that having the opportunity to “confer“—to communicate—with the adjudicator is intrinsically part and parcel of any participation in litigation. Not only is intervention in an administrative or adjudicatory proceeding a form of “communication,” but it is also the most clearly recognized and most acceptable form of holding “conversation or conference” on the “important, difficult, or complex matters” that may come before the FERC. Intervention falls squarely within the definition of “confer” first cited in the principal opinion.
Thus, while
To draw the conclusion set forth in the principal opinion is to place an unwarranted gloss on
Here, the PSC‘s order upholding its authority to intervene in the FERC proceedings concerning MoGas was reasonable in that the PSC was presenting evidence to enable the FERC to make a more informed decision regarding rates and related matters. Therefore, I would affirm the order of the PSC and permit the PSC to continue to intervene in matters before the FERC relating to MoGas and others.
Sandy JOHME, Respondent, v. ST. JOHN‘S MERCY HEALTHCARE, Appellant.
No. SC 92113.
Supreme Court of Missouri, En Banc.
May 29, 2012.
Notes
Neither this chapter, nor any provision of this chapter, except when specifically so stated, shall apply to or be construed to apply to commerce with foreign nations or commerce among the several states of this union, except insofar as the same may be permitted under the provisions of the Constitution of the United States and the acts of Congress.
The [PSC] may appoint ... a general counsel to serve at the pleasure of the commission.... It shall be the duty of the general counsel for the commission to represent and appear for the commission in all actions and proceedings involving any question under this or any other law, or under or in reference to any act, order, decision or proceeding of the commission, and if directed to do so by the commission, to intervene, if possible, in any action or proceeding in which any such quеstion is involved; to commence and prosecute in the name of the state all actions and proceedings, authorized by law and directed or authorized by the commission, and to expedite in every way possible, to final determination all such actions and proceedings....
