Alma Plantation v. Louisiana Public Service Com'n

• Court: Supreme Court of Louisiana
• Writing for the Court: JOHNSON
• Citation: 685 So.2d 107
• Parties: 96-1423 La
• Decision Date: 14 January 1997

Page 107

685 So.2d 107 96-1423 La. 1/14/97, Util. L. Rep. P 26,592 Alma PLANTATION
v.
LOUISIANA PUBLIC SERVICE COMMISSION. No. 96-CA-1423. Supreme Court of Louisiana. Jan. 14, 1997.

Page 108

L. Richard Westerburg, Brian Andrew Eddington, Baton Rouge, for appellant.

James Ashton McCann, Galliano, for appellee.

[96-1423 La. 1] GRAYDON K. KITCHENS, Jr., Justice Pro Tem. ^*

Gulf States Utilities Company, appellant to these proceedings, objects to a ruling of the District Court reversing the Louisiana Public Service Commission and remanding this case for a new evidentiary hearing because portions of the tape of the Commission's Open Session were unavailable. Because we find that the record of the Open Session of the Commission is not integral to a review of that decision, we reverse and remand to the District Court to review the Commission's decision under the appropriate standard of review.

FACTS AND PROCEDURAL HISTORY

Alma Plantation ("Alma") takes electric service from Entergy Gulf States, Inc. ("Gulf States"). Prior to March 1, 1991, Alma took electric service under Gulf States' General Service ("GS") Rate combined with a Rider for Seasonal Service ("SS Rider"). On January 19, 1994, Alma filed a letter of complaint with the Louisiana Public Service Commission ("Commission") alleging that Gulf States had violated a General Order of the Commission dated November 2, [96-1423 La. 2] 1987. The Order required the utility to perform an annual rate comparison to determine the most favorable rate for customers, to inform them of the alternative rate, and to allow them the opportunity to select that alternative rate. Alma contended that from January, 1988 until March, 1991 it had been eligible for the Large General Service ("LGS") Rate with the SS Rider. Alma contended that if it had received the LGS Rate with SS Rider, it would have paid $44,068.96 less for electric service, and sought a refund from Gulf States in this amount. Alma subsequently amended this request to seek a refund of $53,848.23.

Gulf States responded by requesting a dismissal of Alma's claim on the basis that Alma was seeking to incorrectly apply the SS Rider to the LGS Rate. Gulf States contends the "Energy Charge" under both the GS and LGS Rates is determined by multiplying a fixed dollar amount by the amount of energy in kWh consumed by the customer during the billing month. In the case of the GS Rate this fixed energy charge is $2.70 per-kWh. In the case of the LGS Rate, the charge is $1.60 per-kWh. Thus it is argued that the Energy Charge under the LGS Rate will always be lower for the same amount of kWh.

However, Gulf States claims that the opposite is true of the "Billing Load Charge" in each of these rates. The "Billing Load" is either the current month's highest measured 15-minute demand, or a percentage of a previously higher demand. Under the GS Rate, all kW of the Billing Load up to 5 kW are billed at a fixed $55.40 throughout the year. Every additional kW is billed at $2.50 during May through October and at $2.00 per kW from November through April. The LGS Rate provides a much larger fixed charge of $3,610.00 for all kW up to the first 1000 kW

Page 109

from May through October, and then $3.50 per kW [96-1423 La. 3] above 1000. There is a flat charge of $2,670.00 from November through April, with an additional $2.50 per kW above 1000 kW of billing Load.

Alma argued that Section D of the SS Rider permits the Billing Load to be the actual maximum kW load of the current month, but not less than 5 kW. Therefore, because Alma's Billing Load is substantially below 1000 kW during the off-season months, Alma claimed that its Billing Load Charge should be determined by dividing the flat charge under the LGS Rate by 1000 and then charging only for the actual monthly Billing Load at that price. However, Gulf States argued that Section D of the SS Rider modified only the Billing Load, in order to benefit seasonal customers who used very little energy during certain months, but that it did not alter the flat Billing Load Charge. Gulf States contended that Alma's interpretation amounts to an impermissible "mix and match" approach to rate interpretation.

The matter was set for hearing before Examiner Edward L....