Tri-State Generation and Transmission Ass'n, Inc. v. Wyoming Public Service Com'n, TRI-STATE
| Decision Date | 16 April 1987 |
| Docket Number | No. 86-223,TRI-STATE,SHERIDAN-JOHNSON,86-223 |
| Citation | 735 P.2d 718 |
| Parties | GENERATION AND TRANSMISSION ASSOCIATION, INC., Wyrulec Company and Carbon Power and Light, Inc., Petitioners, v. The WYOMING PUBLIC SERVICE COMMISSION; Charles E. Johnson; John R. Smyth; Nels J. Smith; Pacificorp; and Shoshone River Power, Inc., Respondents. HOT SPRINGS RURAL ELECTRIC ASSOCIATION, INC., and Riverton Valley Electric Association, Inc., Petitioners, v. The PUBLIC SERVICE COMMISSION OF WYOMING; Charles E. Johnson; John R. Smyth; Nels J. Smith, in their official capacities as Commissioners of the Public Service Commission of Wyoming; Pacificorp d/b/a Pacific Power & Light Company; and Shoshone River Power, Inc., Respondents. The WHEATLAND RURAL ELECTRIC ASSOCIATION, INC., Petitioner, v. The WYOMING PUBLIC SERVICE COMMISSION; Charles E. Johnson; John R. Smyth; Nels J. Smith; in their official capacities as Commissioners of the Wyoming Public Service Commission, Respondents. WYOMING RURAL ELECTRIC ASSOCIATION, Petitioner, v. The WYOMING PUBLIC SERVICE COMMISSION; Charles E. Johnson; John R. Smyth; Nels J. Smith; in their official capacities as Commissioners of the Wyoming Public Service Commission; Pacificorp d/b/a Pacific Power & Light Company; and Shoshone River Power, Inc., Respondents. RURAL ELECTRIC COMPANY, Petitioner, v. The WYOMING PUBLIC SERVICE COMMISSION; Charles E. Johnson; John R. Smyth; Nels J. Smith; in their official capacities as Commissioners of the Wyoming Public Service Commission; Pacificorp, d/b/a Pacific Power & Light Company; and Shoshone River Power, Inc., Respondents.RURAL ELECTRIFICATION ASSOCIATION, Petitioner, v. The WYOMING PUBLIC SERVICE COMMISSION; Charles E. Johnson; John R. Smyth; Nels J. Smith; in their official capacities as Commissioners of the Wyoming Public Service Commission; Pacificorp, d/b/a Pacific Power & Light Company; and Shoshone River Power, Inc., Respondents. |
| Court | Wyoming Supreme Court |
Michael A. Williams, Robert E. Youle, Edward A. Gleason (argued), and John C. Smiley of Sherman & Howard, Denver, Colo., Bruce S. Asay of Kline, Buck & Asay, Cheyenne; Thomas M. McCaffrey of Tri-State G & T Assoc., Inc., Denver, Colo., for Tri-State Generation & Transmission Assoc., Inc.
Frederick J. Harrison, Rawlins (argued), for Carbon Power & Light, Inc., Hot Springs Rural Elec. Ass'n, Inc., Riverton Valley Elec. Ass'n, Inc., Wheatland Rural Elec. Ass'n, Inc., Wyoming Rural Elec. Ass'n, Rural Elec. Co., and Wyrulec.
Robert W. Connor, Jr., Sheridan, for Sheridan-Johnson Rural Electrification Ass'n; submitted on brief.
A.G. McClintock, Atty. Gen., Mary B. Guthrie, Sr. Asst. Atty. Gen., and Roger C. Fransen, Asst. Atty. Gen. (argued), for Public Service Com'n.
Stanley K. Hathaway (argued) of Hathaway, Speight and Kunz, Cheyenne, and George M. Galloway of Stoel, Rives, Boley, Fraser & Wyse, Portland, Or., for Pacific Power & Light Co. Robert D. Olson (argued), and James M. Guill of Goppert & Olson, Cody, for Shoshone River Power, Inc.
Before BROWN, C.J., and THOMAS, CARDINE, URBIGKIT and MACY, JJ.
This is an appeal from a Public Service Commission order approving respondent Pacific Power and Light Company's purchase of all of the assets of respondent Shoshone River Power, Inc. Petitioners contend that the Public Service Commission erred in ruling that the proceeding did not constitute a contested case.
We reverse.
Petitioner Tri-State Generation and Transmission Association, Inc. (Tri-State) is a non-profit cooperative association that provides wholesale electric power to its member-owners, who include the petitioners in the present action and respondent Shoshone River Power, Inc. (Shoshone). Shoshone and Tri-State's other members buy electrical power from Tri-State under all-requirements power supply contracts, which provide that the members will buy all of their energy from Tri-State over an extended time period.
The all-requirements contracts serve several purposes. They guarantee that the distribution cooperatives will have a dependable source of power under their management and control and that generation and transmission companies like Tri-State will have a stable customer base. They also serve as security for long-term loans to Tri-State from the Rural Electrification Administration.
On November 18, 1985, Shoshone filed an application with the Public Service Commission (Commission) requesting permission to sell all of its utility facilities to Pacific Power and Light Company (PP & L), an investor-owned utility providing service throughout Wyoming. By a separate application, PP & L requested authority to acquire the assets of Shoshone and begin providing service to Shoshone's customers. On March 18, 1986, the Commission entered an order approving the sale, allowing PP & L to service Shoshone's customers in accordance with PP & L's existing tariffs, and authorizing Shoshone's dissolution.
On March 20, 1986, Tri-State filed a petition to intervene and a petition for rehearing, alleging that the sale of Shoshone would result in a breach of Shoshone's all-requirements contract and jeopardize Tri-State's ability to provide power to its other customers. Tri-State contended that the matter required a contested case hearing. On March 31, petitioner Carbon Power and Light, Inc. filed a petition to intervene and petition for rehearing on the same grounds. The Commission also received informal letter protests from eight other rural electric distribution cooperatives, all urging that the Commission hold a public hearing on the sale.
On April 22, 1986, the Commission heard arguments on the petitions for rehearing. Argument was strictly limited to the legal issue of whether a contested case hearing was required before PP & L could purchase the assets of Shoshone. In an order entered on April 30, 1986, the Commission found that the matter did not require a contested case hearing and reaffirmed its earlier order approving the sale. The Commission noted that Tri-State had filed a breach of contract action against Shoshone in federal district court, and found that ...
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