Safe Harbor Water Power Corp. v. Fajt

• Decision Date: 21 June 2005
• Citation: 876 A.2d 954,583 Pa. 234
• Parties: SAFE HARBOR WATER POWER CORPORATION, Appellant, v. Gregory C. FAJT, Secretary of Revenue, Appellee, PP & L, Inc., f/k/a Pennsylvania Power and Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Interstate Energy Co., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PG Energy Inc., f/k/a, Pennsylvania Gas & Water Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, West Penn Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Potomac Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Monongahela Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellees, Peco Energy Company, Appellant, v. Gregory C. Fajt, Secretary Of Revenue, Appellee, Peco Energy Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Luzerne Electric Division of UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Peoples Natural Gas Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, CNG Transmission Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Duquesne Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Distribution Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Supply Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, New York State Electric and Gas Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Pennsylvania Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Ohio Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Toledo Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, CNG Transmission Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellees, Peoples Natural Gas Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, New York State Electric and Gas, Appellant, v. Commonwealth of Pennsylvania, Appellees, National Fuel Gas Distribution Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellees, Duquesne Light Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, National Fuel Gas Supply Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellees, West Penn Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, Monongahela Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, Potomac Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, Interstate Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PP & L, INC., Appellant, v. Commonwealth of Pennsylvania, Appellee, Safe Harbor Water Power Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Pennsylvania Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Ohio Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Toledo Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Luzerne Electric Division of UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PG Energy Inc., f/k/a Pennsylvania Gas & Water Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Safe Harbor Water Power Corp., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PP & L Inc., f/k/a Pennsylvania Power and Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Interstate Energy Co., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PG Energy, Inc., f/k/a Pennsylvania Gas & Water Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, West Penn Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Potomac Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Monongahela Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PECO Energy Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PECO Energy Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Luzerne Electric of UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Peoples Natural Gas Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, CNG Transmission Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Duquesne Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Distribution Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Supply Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, New York State Electric & Gas Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Pennsylvania Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Ohio Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Toledo Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, CNG Transmission Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Peoples Natural Gas Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, New York State Electric and Gas Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, National Fuel Gas Distribution Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Duquesne Light Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, National Fuel Gas Supply Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, West Penn Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Monongahela Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Potomac Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Interstate Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PP & L, INC., Appellant, v. Commonwealth of Pennsylvania, Appellee, Safe Harbor Water Power Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Pennsylvania Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Ohio Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Toledo Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Luzerne Electric Division of UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PG Energy, Inc. f/k/a Pennsylvania Gas & Water Company, Appellant, v. Commonwealth of Pennsylvania, Appellee.
• Court: Pennsylvania Supreme Court

876 A.2d 954

583 Pa. 234

SAFE HARBOR WATER POWER CORPORATION, Appellant, v. Gregory C. FAJT, Secretary of Revenue, Appellee, PP & L, Inc., f/k/a Pennsylvania Power and Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Interstate Energy Co., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PG Energy Inc., f/k/a, Pennsylvania Gas & Water Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, West Penn Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Potomac Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Monongahela Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellees, Peco Energy Company, Appellant, v. Gregory C. Fajt, Secretary Of Revenue, Appellee, Peco Energy Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Luzerne Electric Division of UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Peoples Natural Gas Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, CNG Transmission Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Duquesne Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Distribution Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Supply Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, New York State Electric and Gas Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Pennsylvania Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Ohio Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Toledo Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, CNG Transmission Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellees, Peoples Natural Gas Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, New York State Electric and Gas, Appellant, v. Commonwealth of Pennsylvania, Appellees, National Fuel Gas Distribution Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellees, Duquesne Light Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, National Fuel Gas Supply Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellees, West Penn Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, Monongahela Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, Potomac Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellees, Interstate Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PP & L, INC., Appellant, v. Commonwealth of Pennsylvania, Appellee, Safe Harbor Water Power Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Pennsylvania Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Ohio Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Toledo Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Luzerne Electric Division of UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PG Energy Inc., f/k/a Pennsylvania Gas & Water Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Safe Harbor Water Power Corp., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PP & L Inc., f/k/a Pennsylvania Power and Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Interstate Energy Co., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PG Energy, Inc., f/k/a Pennsylvania Gas & Water Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, West Penn Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Potomac Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Monongahela Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PECO Energy Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, PECO Energy Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Luzerne Electric of UGI Utilities, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Peoples Natural Gas Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, CNG Transmission Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Duquesne Light Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Distribution Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, National Fuel Gas Supply Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, New York State Electric & Gas Corporation, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Pennsylvania Power Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Ohio Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Toledo Edison Company, Appellant, v. Gregory C. Fajt, Secretary of Revenue, Appellee, Allegheny Electric Cooperative, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, CNG Transmission Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Peoples Natural Gas Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, New York State Electric and Gas Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, National Fuel Gas Distribution Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Duquesne Light Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, National Fuel Gas Supply Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, West Penn Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Monongahela Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Potomac Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Interstate Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PP & L, INC., Appellant, v. Commonwealth of Pennsylvania, Appellee, Safe Harbor Water Power Corporation, Appellant, v. Commonwealth of Pennsylvania, Appellee, Pennsylvania Power Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Ohio Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Cleveland Electric Illuminating Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Toledo Edison Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, Luzerne Electric Division of UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, UGI Utilities, Inc., Appellant, v. Commonwealth of Pennsylvania, Appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, appellee, PECO Energy Company, Appellant, v. Commonwealth of Pennsylvania, Appellee, PG Energy, Inc. f/k/a Pennsylvania Gas & Water Company, Appellant, v. Commonwealth of Pennsylvania, Appellee.

Supreme Court of Pennsylvania.

Argued May 11, 2004.

Decided June 21, 2005.

N. David Rahal, Esq., Robert L. Weldon, Esq., Ronald Scott Shearer, Esq., Joseph C. Bright, Jeffrey S. Stokes, Esq., Harrisburg, for Safe Harbor Water Power Corp.

Michael J. Semes, Esq., N. David Rahal, Esq., Christopher A. Lewis, Esq., Robert P. Harrill, Jr., Esq., Harrisburg, for PECO Energy Company.

Daniel John Doyle, Esq., Bartholomew J. Deluca, Jr., Esq., Harrisburg, for Gregory C. Fajt.

CAPPY, C.J., and CASTILLE, NIGRO, NEWMAN, SAYLOR, EAKIN and BAER, JJ.

OPINION

Chief Justice CAPPY.

Before this court are the collective appeals of 22 utility companies ("Appellants") from the decision of the Commonwealth Court in Safe Harbor Water Power Corp., et al. v. Larry P. Williams, Secretary of Revenue, 825 A.2d 733 (Pa.Cmwlth.2003) wherein that court held that Appellants were not entitled to settlement of their respective tax liability before the Department of Revenue ("Department") initiated collection proceedings. For the following reasons, we affirm that decision and remand to the Commonwealth Court for adjudication of unresolved matters.

These cases regard Appellants' 1997 alleged liability for taxes imposed pursuant to the Public Utility Realty Tax Act ("PURTA").¹ PURTA, by way of background, is a by-product of the ratification of the 1968 Constitution of Pennsylvania in which Article VIII was amended explicitly to subject the real property of public utilities to real estate taxes. Rather than subject the individual utility properties to the various local real estate taxes, Article VIII, Section 4² of the Constitution authorized the legislature to provide such revenue by levying on the utilities gross receipts taxes or other special taxes payable to the Commonwealth. To implement the constitutional provision, the General Assembly enacted PURTA in 1970. PURTA permits the Commonwealth to collect the equivalent of a local real estate tax from utilities "at the rate of thirty mills upon each dollar...