United Fuel Gas Co v. Pub. Serv. Comm'n

Citation73 W.Va. 571,80 S.E. 931
PartiesUNITED FUEL GAS CO. v. PUBLIC SERVICE COMMISSION.
Decision Date28 January 1914
CourtWest Virginia Supreme Court

80 S.E. 931
73 W.Va. 571

UNITED FUEL GAS CO.
v.
PUBLIC SERVICE COMMISSION.

Supreme Court of Appeals of West Virginia.

Jan. 28, 1914.


(Syllabus by the Court.)

1. Corporations (§ 394*)—Orders or Public Service Commission—Review—Extent or Jurisdiction.

This court by section 16, chapter 9, Acts 1913, is given jurisdiction not by appeal, but as upon original process to review an order of the Public Service Commission created by said act, and such jurisdiction is limited to matters purely judicial and does not extend to matters purely administrative, executive or legislative, such jurisdiction not being conferred by the Constitution.

[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1576; Dec. Dig. § 394.*]

2. Corporations (§ 394*)—Constitutional Law (§ 316*)—Due Process—Orders op Public Service Commission—Review.

This statute so construed is not void as depriving a public service corporation, without due process of law, of rights guaranteed to it by the state or federal Constitution. The process of such Public Service Commission provided in said act, with right thereby given to have a review of the order or judgment of said Commission by this court, as to matters judicial involved therein, and as provided thereby, satisfying the requirement of due process and other constitutional rights protected by the Constitution.

[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1576; Dec. Dig. § 394;* Constitutional Law, Cent. Dig. § 938; Dec. Dig. § 316.*]

3. Corporations (§ 394*)—Orders of Public Service Commission—Conclusiveness on Review.

Sections 5, 6 and 7 of said act (Acts 1913. c. 9), adapted to all kinds of public service corporations, are in substance sections 12, 2 and

3. of the Interstate Commerce Act (Act Feb. 4. 1887. c. 104, 24 Stat. 383, 379, 380 [U. S. Comn. St. 1901, pp. 3162, 3155]), and as interpreted ' the Supreme Court of the United States, with respect to orders and judgments of the Interstate Commerce Commission, the orders of the Public Service Commission are final and not subject to judicial interference on review by this court, unless "(1) beyond the power which it could constitutionally exercise; or (2) beyond its statutory power; or (3) based upon a mistake of law."

[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1576; Dec. Dig. § 394.*]

4. Corporations (§ 394*)—Public Service Commission—Police Power.

The powers so conferred upon the Public Service Commission are within constitutional limitations, as an exercise by the State of its police power.

[Ed. Note.—For other cases, see Corporations. Cent. Dig. § 1576; Dec. Dig. § 394.*]

5. Gas (§ 13*)—Gas Companies—Contracts with Consumers.

Contracts of a natural gas company with consumers of natural gas for exclusive service for a term of years in consideration of reduced rates, constitute no lawful basis for discrimination in rates in favor of such contract consumers against other consumers when in other respects the set-vice is rendered all under substantially the same circumstances and conditions; and when the manifest object of such contracts is to monopolize the business of serving the public with natural gas.

[Ed. Note.—For other cases, see Gas, Cent. Dig. §§ 5-9; Dec. Dig. § 13.*]

6. Corporations (§ 394*)—Order of Public Service Commission—Review.

The judgment or order of the Public Service Commission in such cases on questions of expediency, and as to what is best for the public interests, is final and not reviewable by this court.

[Ed. Note.—For other cases, see Corporations, Cent. Dig. § 1576; Dec. Dig. § 394.*]

Petition by the United Fuel Gas Company against the Public Service Commission. Order of suspension refused, and petition dismissed.

[80 S.E. 932]

Vinson & Thompson, of Huntington, Chilton, MacCorkle & Chilton, of Charleston, and R. G. Altizer and Geo. M. Hoffheimer, both of Clarksburg, for petitioner.

John B. Daish, of Washington, D. C, Fred M. Livezey, of Huntington, and Frank Lively, of Charleston, for respondent.

MILLER, P. Upon the petition of the United Fuel Gas Company, pursuant to section 16 thereof, we are called upon for the first time to give construction to chapter 9, Acts of the Legislature of 1913, entitled "An Act to create a public service commission and to prescribe its powers and duties, and to prescribe penalties for the violation of the provisions of this act, " in so far at least as the provisions thereof are applicable to the case now presented, and undertake to impose or confer jurisdiction on this court, original or appellate, in relation thereto.

Said section 16 provides: "Any party feeling aggrieved by the entry of a final order by the commission, affecting him or it, may present his or its petition in writing to the supreme court of appeals, or to a judge thereof in vacation, within thirty days after the entry of such order, praying for the suspension of such final order. The applicant shall deliver a copy of such petition to the secretary of the commission before presenting the same to the court, or the judge. The court or judge shall fix a time for the hearing on the application, but such hearing shall not be held sooner than five days, unless by agreement of the parties, after its presentation, and notice of the time and place of such hearing shall be forthwith delivered to the secretary of the commission, so that the commission may be represented at such hearing by one or more of its members or by counsel. If the court or the judge after such hearing be of the opinion that a suspending order should issue, the court or the judge may require bond, upon such conditions and in such penalty, and impose such terms and conditions upon the petitioner as are just and reasonable. The hearing of the matter shall take precedence over all other matters before the court except the correction of assessments. For such hearing the commission shall file with the clerk of said court all papers, documents, evidence and records or certified copies thereof as were before the commission at the hearing or investigation resulting in the entry of the order from which the petitioner appeals. The commission shall file with the court before the day fixed for the final hearing a written statement of its reasons for the entry of such order, and after arguments by counsel the court shall decide the matter in controversy as may seem to be just and right."

The petitioner complains of an order of the Commission pronounced against it on November 15, 1913, on three several complaints or petitions pending before it, and by agreement heard together, one of R. D. Wylie, one of Floyd S. Chapman, and the other of the City of Huntington. The order of the Commission sufficiently discloses the grounds of complaint, substantially the same in all three petitions, so far as concerns our present inquiry, and the action of the Commission thereon as follows:

"Upon consideration whereof the Public Service Commission is of the opinion—

"First: That the United Fuel Gas Company is violating the law by maintaining in the City of Huntington two rates for natural gas for domestic purposes, one being a rate of 23 cents per 1000 cu. ft. less a discount of 2 cents per 1000 cu. ft If paid on or before the 10th day of the month following that in which the gas is consumed, and another rate of 22 cents per 1000 cu. ft. less a discount of 2 cents per 1000 cu. ft. if paid on or before the 10th day of the month following that in which the gas is consumed, said latter rate being given to those consumers who have entered into a written agreement with the United Fuel Gas Company for a period of five years, and it is therefore ordered by the Public Service Commission that the United Fuel Gas Company do cease and desist from a continuation of this practice in discriminating between the two classes of domestic consumers. Second: The Public Service Commission does not at this time pass on the question of reasonableness of the rates now charged by the United Fuel Gas Company except the Commission is of the opinion that the rate of 23 cents per 1000 cu. ft. less a discount of 2 cents per 1000 cu. ft if paid on or before the 10th day of the month following that in which the gas is consumed, now charged to 'No contract consumers' is excessive and exorbitant and the United Fuel Gas Company is ordered to reduce their rates so that the maximum rate allowed this Company to charge any of its consumers will not exceed 22 cents per 1000 cu. ft less a discount of 2 cents per 1000 cu. ft if paid on or before the 10th day of the month following that in which the gas is consumed."

In its answer to the several complaints petitioner attempted to justify its alleged unlawful and unjust discrimination, on grounds justified by the statute, and its contracts with its customers, and a compromise decree in a suit brought against it by the City of Huntington.

In its written opinion or statement giving its reasons for the entry of the order complained of, filed with the papers in this court, as required by said section 16, it is said that "the Commission does not pass on the validity of the contracts at the time they were entered into if they were entered into prior to the time the Public Service Commission Law became effective, " and it goes without saying that nothing was determined against the petitioner not covered by the terms of the order of which the petitioner complains.

[80 S.E. 933]

In the petition presented here, grounded on the same facts alleged in its answers to the original complaints, it is charged that the order complained of was unwarranted and erroneous in the following particulars: "First: In finding that the charging of said two rates under the different circumstances and conditions above set forth, was unlawful and in ordering that your petitioner cease and desist so to do. Second: In finding that the rate charged by your petitioner for natural gas sold by it in said City of Huntington, for domestic purposes, of twenty-three cents per thousand cubic feet, with a...

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