State ex rel. Webb Tri-State Gas Co. v. Public Service Commission, TRI-STATE

• Decision Date: 02 February 1970
• Docket Number: No. 25266,TRI-STATE,25266
• Citation: 452 S.W.2d 586
• Parties: STATE of Missouri ex rel. WEBBGAS CO., Inc., Max Dunham and William F. Graham, d/b/a Roper Gas Company, and LP Gas Service Company, Tri-State Gas Co., Inc., Empire Gas Transports, Inc., and Al Neidert, d/b/a Al's Gas Company, Relators-Appellants, v. PUBLIC SERVICE COMMISSION of the State of Missouri, Defendant-Respondent.
• Court: Missouri Court of Appeals

Page 586

452 S.W.2d 586

84 P.U.R.3d 203

STATE of Missouri ex rel. WEBB TRI-STATE GAS CO., Inc., Max

Dunham and William F. Graham, d/b/a Roper Gas Company, and

LP Gas Service Company, Tri-State Gas Co., Inc., Empire Gas

Transports, Inc., and Al Neidert, d/b/a Al's Gas Company, Relators-Appellants, v. PUBLIC SERVICE COMMISSION of the State of Missouri,

Defendant-Respondent.

No. 25266.

Kansas City Court of Appeals, Missouri.

Feb. 2, 1970.

Motion for Rehearing and/or Transfer to Supreme Court Denied

April 6, 1970.

Neale, Newman, Bradshaw & Freeman, O. J. Taylor, Springfield, for appellant.

Donal D. Guffey, Laird P. Bowman, Kansas City, for Gas Service Co.

Kyle D. Williams, Jeremiah D. Finnegan, Jefferson City, for Public Service Commission.

SPERRY, Commissioner.

This is an appeal from an order entered March 10, 1969, by the circuit court of Cole County affirming a report and order theretofore issued by the Public Service Commission of Missouri.

On April 11, 1968, the Gas Service Company, (hereafter referred to as service company) a corporation, engaged in Missouri in the natural gas distribution business, and subject to the jurisdiction of the Public Service Commission, (hereafter referred to as commission), made application for a certificate of convenience and necessity to provide natural gas service to the inhabitants of the cities of Anderson, Goodman, Lanagan, Noel and Pineville; to the inhabitants of the village of North Noel; and to the inhabitants of a described area in McDonald County. All such areas are within the State of Missouri. That case was docketed as Number 16495 before the commission.

Thereafter, an application to intervene was filed by appellants and intervention was allowed. Hearings were duly held and appellants and intervenors, who are engaged in the sale and distribution of liquified petroleum gas, (hereafter referred to as LPG) in the area here involved, offered evidence.

Intervenors filed a 'Motion to impose condition upon Certificate of Convenience and Necessity'. The condition sought to be imposed was to the effect that intervenors be reimbursed for their expenses incurred in establishing their businesses and for damages to their respectively established businesses.

On September 5, 1968, the commission entered report and order granting a 'Conditional certificate of Convenience and Necessity' to construct, operate and maintain a gas distribution system for the area described in the petition, including Anderson, Goodman, Lanagan, Noel, Pineville, North Noel and Spring Valley. The conditions imposed were routine and were not of the character sought by intervenors, whose prayer in that respect was denied. Appellants took proper steps to bring this appeal before us.

McDonald County is located in the southwestern corner of Missouri. It has a population of 14,144. It is noted for its rugged terrain, its beautiful scenery and its hospitable people. The municipalities here involved are among the more populous areas of the County: Anderson, 992; Goodman, 540; Lanagan, 357; Noel, 736; Pineville, 454; Spring Valley, 43. All are now using LPG for heating purposes, as are many of the remaining inhabitants of the county. There is an indication in the record to the effect that coal is not extensively used. However, we know that the county is well wooded and watered and that, prior to the advent of LPG, wood was almost universally used for heating purposes. The area sought to be certificated is indicated on an exhibit filed by applicant indicating an area within roughly parallel lines depicted in red embracing some 90.5 square miles. Cities Service gas line is shown running from northwest to the southeast through the entire county, with some lines running out to the east and west therefrom. The towns mentioned herein are located along or near this service line.

All of the towns were represented at this hearing by counsel and by interested citizens who gave testimony in support of applicant's position. All had adopted franchise ordinances and all urged that applicant be permitted to serve the entire area shown on the map filed by applicant.

The only opposition offered came from officers and employees of various LPG companies, serving the area. The tenor of the evidence from that standpoint is that the LPG dealers had built their businesses at considerable expense and that they will lose their investments. This is evidenced by the fact that applicant would service customers with natural gas at a price approximately 50% of that now being paid for LPG.

It is because of this situation that protestants urged that conditions be...