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IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
September 1998 Term
____________
No. 24994
____________
THE POTOMAC EDISON COMPANY,
Petitioner below, Appellee,
v.
THE JEFFERSON COUNTY PLANNING AND ZONING COMMISSION,
PAUL RACO, RICHARD H. FLAHERTY, PAUL W. GRIGER,
LYLE CAMPBELL TABB, III, SCOTT COYLE, SAMUEL J. DONLEY, JR.,
ROSELLA KERN, PETER H. MORGENS, ERNEST BENNER,
AL HOOPER, DEAN HOCKENSMITH, and ARNOLD DAILY,
Respondents below, Appellants.
______________________________________________________
Appeal from the Circuit Court of Jefferson County
Honorable Christopher C. Wilkes, Judge
Civil Action No. 97-P-28
REVERSED
______________________________________________________
Submitted:
October 27, 1998
Filed: December 11, 1998
Susan R. Snowden,
Esq.
Michael D. Thompson, Esq.
Clarence E. Martin, III,
Esq.
Prosecuting Attorney
Joseph L. Caltrider,
Esq.
J. Michael Cassell, Esq.
Martin & Seibert,
L.C.
Assistant Prosecuting Attorney
Martinsburg, West
Virginia
Charles Town, West Virginia
Attorneys for the
Appellee
Attorneys for the Appellant The
Jefferson
County Planning and
Zoning
Commission
JUSTICE STARCHER delivered the Opinion of the Court and was joined by
CHIEF JUSTICE DAVIS and JUSTICES WORKMAN, MAYNARD and McCUSKEY.
JUSTICE MAYNARD dissents.
JUSTICE McGRAW did not participate in the decision of this case.
SYLLABUS BY THE COURT
1. A
privately-owned public utility, which may exercise the power of eminent domain under W.Va.
Code, 54-1-1 to -12, is subject to land use regulations enacted by a local unit of
government pursuant to W.Va. Code, 8-24-1 to -78.
2. "A writ of
mandamus will not issue unless three elements coexist--(1) a clear legal right in the
petitioner to the relief sought; (2) a legal duty on the part of respondent to do the
thing which the petitioner seeks to compel; and (3) the absence of another adequate
remedy." Syllabus Point 2, State ex rel. Kucera v. City of Wheeling, 153 W.Va.
538, 170 S.E.2d 367 (1969).
Starcher, Justice:
In this case of first impression we are
asked to address a conflict between the exercise of the State's police power by a county
planning commission through zoning and planning regulations, and the exercise of the
statutory power of condemnation by a utility company. The utility company asserts that it
is exempt from such land use regulations on property that a circuit court has allowed the
utility to take pursuant to its statutory condemnation powers.
The utility company in this case
petitioned the circuit court for a declaratory judgment and a writ of mandamus to compel a
county planning commission to issue a notice stating the utility was in compliance with
local zoning and planning regulations. The trial court issued the writ of mandamus, and
declared that the public utility was not subject to local land use regulations.
On an appeal by the county planning
commission, we hold that the circuit court erred in granting the writ of mandamus and
declaratory judgment. As set forth below, we hold that privately-owned public utility
companies are bound to comply with local zoning and planning regulations. Although a
public utility may exercise the power of eminent domain, a public utility is not a
quasi-state agency exempt from local government regulation. Additionally, because the
public utility in this case has circumvented rather than attempted to avail itself of the
zoning and planning regulations in question, the public utility has failed to show a legal
duty on the part of the county planning commission to do the thing which the public
utility seeks to compel. We therefore reverse the circuit court.
I.
Facts and Background
This case involves 10.05
acres of land in the Middleway District in Jefferson County, West Virginia. The land has
been zoned as a "rural agricultural district" by the respondent below and
appellant, The Jefferson County Planning Commission ("Planning Commission"). The
Planning Commission is a political subdivision of the Jefferson County Commission, and is
empowered to enforce land use regulationsSee footnote
1 1 regarding real property located in Jefferson County.
Properties adjacent to and near the land
in question have recently experienced substantial commercial and industrial expansion. The
petitioner below and appellee, Potomac Edison Company, is a private corporation that
provides electrical service in Jefferson County and in other counties in this State. Over
the past 10 years, the industrial and commercial expansion of the Jefferson County area
has caused the demand for electricity in the county to grow at a rate of approximately 8%
per year.
To address this increasing demand for
electricity, in 1992 Potomac Edison began planning for the construction of additional
high-power transmission lines into the area, and for the construction of a power
substation to reduce the power to a level that is usable by consumers.
In July 1994, representatives from the
utility company met with members of the Planning Commission concerning the construction of
a power substation in the county's Middleway District. At that meeting, the Planning
Commission pointed out the land in question was zoned for rural agricultural use, and that
the proposed electric substation was not a permitted use under County land use ordinances.
However, the Planning Commission also outlined for Potomac Edison the process whereby the
utility could request a variance or conditional use permit for the proposed electric
substation.
By a letter dated August 24, 1994, a
representative of Potomac Edison informed the Planning Commission of the need for the
substation to support continued economic development. Potomac Edison argued that either
(1) the county's land use ordinances did not apply to the construction of a power
substation, or (2) that the ordinances should be amended to "clarify" that they
did not apply. The Planning Commission denied Potomac Edison's request for an exemption
from the ordinances, and again informed the power company of the process for seeking a
variance or a conditional use permit.
Two years later, on
October 9, 1996, Potomac Edison filed a condemnation petition in the Circuit Court of
Jefferson County seeking to condemn and take by eminent domain the 10.05 acre parcel in
question.See footnote 2 2 The
Planning Commission was not a party to, received no notice of, and did not participate in
this litigation. The circuit court entered an order in the condemnation action on November
19, 1996 granting title to the 10.05 acres of land to Potomac Edison.See footnote 3 3
On January 15, 1997, Potomac Edison filed
with the Planning Commission an application for a National Pollutant Discharge Elimination
System ("NPDES") permit for storm water management on the land in question.See footnote 4 4 The Planning
Commission informed Potomac Edison that as part of the NPDES permit application process,
Potomac Edison would have to apply for a variance or conditional use permit under the
County's land use ordinances. Potomac Edison was told that State regulations require that
before an NPDES permit could be granted, Potomac Edison would have to submit a
"certificate of compliance" showing that Potomac Edison had obtained the
necessary local zoning permits from the Planning Commission.
The Planning Commission refused to issue a
certificate of compliance. On April 23, 1997, Potomac Edison filed a petition for a writ
of mandamus and a petition for a declaratory judgment against the Planning Commission and
its members in the Circuit Court of Jefferson County. The utility contended that the
Planning Commission had a non- discretionary duty to issue the certificate of compliance
for the NPDES permit, and that a writ of mandamus was necessary to compel the Planning
Commission to issue the certificate of compliance showing approval for the construction of
the power substation. Furthermore, Potomac Edison sought a declaratory judgment from the
circuit court to the effect that the statutes giving utilities the power to condemn land
"supersede the zoning powers and other land use regulations conferred upon County
government."
After receiving stipulations and briefs
from the parties, the circuit court entered a final order on August 8, 1997, granting
Potomac Edison the desired declaratory judgment. The circuit court's order declares that
"a post-condemnation application of a pre-existing land-use ordinance would preclude
and frustrate the meaning and purpose of the condemnation statutes of the State of West
Virginia." The circuit court concluded that, "in ordering a condemnation, [a
circuit court] must make an initial finding of public necessity [for a private utility] to
utilize the power of condemnation and to further subject the property to application of
land use ordinances would frustrate the statutorily-conferred power. . . ."
Furthermore, the circuit court's order
granted Potomac Edison's writ of mandamus. The court ordered the Planning Commission to
"forthwith issue a Certificate of Compliance to the Department of Environmental
Protection allowing the issuance of the NPDES permit to . . . The Potomac Edison Company,
for the establishment of its electrical substation on the property condemned. . . ."
It is from this order that the Planning
Commission now appeals.
II.
Standard of Review
We review a circuit
court's entry of a declaratory judgment de novo. Syllabus Point 3, Cox v. Amick,
195 W.Va. 608, 466 S.E.2d 459 (1995). Similarly, we review de novo an order
granting relief through the extraordinary writ of mandamus. Syllabus Point 1, Staten v.
Dean, 195 W.Va. 57, 464 S.E.2d 576 (1995).
With these standards in mind, we examine
the circuit court's August 8, 1997 order entering a declaratory judgment and granting a
writ of mandamus.
III.
Discussion
A.
The Circuit Court's Declaratory Judgment Order
This case presents a
conflict between two powers that are assigned by the Legislature through statutes: the
power of local governments to enact and enforce zoning and planning regulations, and the
power of privately-owned public utilities to acquire land by eminent domain for public
uses.
Local governments such as the Jefferson
County Commission are empowered by the Legislature to create planning commissions and to
enact and enforce land use regulations pursuant to W.Va. Code, 8-24-1 to -78.
Specifically, W.Va. Code, 8-24-39 [1988] allows local governments to enact planning
regulations:
. . . so that adequate light, air,
convenience of access, and safety from fire, flood and other danger may be secured; that
congestion in the public streets may be lessened or avoided; that the public health,
safety, comfort, morals, convenience and general public welfare may be promoted; [and]
that the preservation of historic landmarks, sites, districts and buildings be promoted[.]
The Legislature has
statutorily conferred upon certain private corporations the power to take private property
through eminent domain in W.Va. Code, 54-1-1 to -12. This article specifically
allows privately-owned power companies to take or damage private property for specified
public uses, including:
For the construction and maintenance of .
. . electric light, heat and power plants, systems, lines, transmission lines, conduits,
stations (including branch, spur and service lines), when for public use[.] W.Va. Code,
54-1-2(b) [1979].
The circuit court ruled that the power of
public utilities to take property through eminent domain is superior to the authority of
local governments to enforce land use regulations, because to hold otherwise would
"preclude and frustrate the meaning and purpose" of the statutorily-conferred
power of eminent domain.
Potomac Edison argues that the circuit
court's decision is correct because the statutes conferring upon local governments the
power to enact land use regulations specifically exempt State agencies from those
regulations. W.Va. Code, 8-24-69 states:
The planning and zoning provisions of
this article are supplemental to and do not abrogate the powers and authority extended to
agencies, bureaus, departments, commissions, divisions and officials of the state
government by other state statute and these powers and authority shall remain in full
force and effect. . . .
Potomac Edison argues that
this statute applies to Potomac Edison because it is a quasi-state agency. In support of
this position, Potomac Edison cites to two cases. First, it refers to Handley v. Cook,
162 W.Va. 629, 632, 252 S.E.2d 147, 149 (1979), where we stated that "The Legislature
in order to make power available has conferred upon electric power companies the right of
eminent domain, and has thereby necessarily imposed upon them, as public service
corporations, the right and duty of performing public service." Second, in Baldwin
v. Appalachian Power Co., 556 F.2d 241 (4th Cir. 1977) (per curiam), the
appellee points out that the defendant power company was, "[b]y exercising the
delegated power of eminent domain . . . act[ing] as an agent of the state." By
availing itself of a "state- granted right of entry" the Baldwin court
held that the power company was acting "under color of state law" for purposes
of 42 U.S.C. § 1983.
Potomac Edison, in sum, argues that the
Legislature has directed that public utilities, when exercising the power of eminent
domain, are in essence state agencies and therefore exempt from the Planning Commission's
authority.
The appellant Planning Commission's
argument is that county land use ordinances are on the same level as State law, unless
they conflict with or are preempted by State law. The Planning Commission argues that
Potomac Edison is a private corporation, and not an arm of the government or a political
subdivision. The appellant agrees that while W.Va. Code, 54-1-1 to -12 confers upon
public utility companies the power of eminent domain, those statutes do not exempt those
companies from local land use ordinances. We agree with the Planning Commission's
position.
It is well established that through W.Va.
Code, 54-1-1 to -12, the Legislature has seen fit to statutorily delegate the power of
eminent domain to certain "internal improvement companies" such as Potomac
Edison. Board of Education of Kanawha Co. v. Campbells Creek R. Co., 138 W.Va. 473,
476, 76 S.E.2d 271, 274 (1953). We have explicitly recognized that there is a
substantial difference between the degree of deference that is to be given to
"private entities such as utilities" and public governmental bodies, in their
exercise of the power of eminent domain. Charleston Urban Renewal Authority v. The
Courtland Co., ___ W.Va. ___, ___ n. 6, ___ S.E.2d ___, ___ n. 6, Slip op. at 19 n. 6
(No. 25015, October 30, 1998).
For example, in West Virginia Board of
Regents v. Fairmont, Morgantown & Pittsburgh Railroad Co., 155 W.Va. 863, 189
S.E.2d 40 (1972), a governmental subdivision, the West Virginia Board of Regents, sought
to condemn land and easements owned by a privately-owned railroad to which the State had
granted the power of eminent domain. We recognized the Board of Regents' authority to take
land from the privately-owned railroad by eminent domain for the construction of a
personal rapid transit system, where the land was to be dedicated to public use by West
Virginia University. We held that the eminent domain rights of the private corporation
were subordinate to the rights of the government subdivision, stating:
The right of the state to condemn is an
attribute of sovereignty, while the power of utilities to condemn is granted by
legislative act and may be revoked by legislative act. The right of the state is therefore
superior to that of the utility.
155 W.Va. at 867, 189 S.E.2d at 43.
Furthermore, there is no statutory
language excluding private corporations exercising eminent domain from the application of
land use ordinances. (For example, W.Va. Code, 8-24-50 [1984] exempts timber and
mineral extraction from the application of certain zoning ordinances.)
We therefore reject the
notion, absent specific statutory authorization, that the taking of land by eminent domain
for public use raises a private corporation to the level of being a state agency for
purposes of avoiding the ambit of laws regulating land use.
Numerous other jurisdictions have
concluded that privately-owned power utilities should be subject to local zoning
restrictions. While statutory schemes vary from state-to-state, in the absence of a
specific statutory exemption, courts generally hold that local zoning ordinances are
binding upon a public utility. See, e.g., Commonwealth Edison Co. v.
County of Lake, 183 Ill.App.3d 1060, 540 N.E.2d 6 (1989) (public utility attempted to
subdivide parcel of land on which a transmission distribution center was built; court held
statute exempting "poles, towers, wires, cables, conduits" from zoning
restrictions did not exempt public utility from county zoning ordinance concerning the
subdivision of property); Union Agricultural Society at Palmyra, Inc. v. Sheldon,
79 Misc.2d 818, 361 N.Y.S.2d 598 (1974) (although agricultural society possessed power of
condemnation, its construction of an exhibit and storage building could be restricted by
local zoning ordinances); Porter v. Southwestern Public Service Co., 489 S.W.2d 361
(Tex.Civ.App. 1972) (landowners sued public utility to force compliance with zoning
ordinance in construction of power substation; court held that public utility must comply
with zoning restrictions because "[t]he city, to which the state has specifically
entrusted the police powers, has the power to inquire into the reasonableness of the
manner by which eminent domain is to be exercised within its corporate limits."); State
ex rel. Kearns v. Ohio Power Co., 163 Ohio St. 451, 127 N.E.2d 394 (1955) (power
company attempted to build power lines on property taken by eminent domain in territory
controlled by planning commission; court held that the privately-owned power company was
amenable to the planning commission's zoning restrictions); New York State Electric
& Gas Corp. v. Statler, 122 N.Y.S.2d 190, 191 (1953) (a public utility "has
the right, where it establishes the necessity therefor, and complies with the local
ordinances, to condemn property but these rights do not exempt it from complying with the
local zoning ordinances." Local zoning ordinances were binding on the public
utility.) See generally, A. Manley, "Applicability of Zoning Regulations to
Projects of Nongovernmental Public Utility as Affected by Utility's Having Power of
Eminent Domain," 87 A.L.R.3d 1265 (1978).
After reviewing the circuit court's August
8, 1997 final order, we conclude that the court erred by declaring that the Planning
Commission could not enforce the Jefferson County zoning ordinances against Potomac
Edison. We hold that a privately-owned public utility, which may exercise the power of
eminent domain under W.Va. Code, 54-1-1 to -12, is subject to land use regulations
enacted by a local unit of government pursuant to W.Va. Code, 8-24-1 to -78.
B.
The Circuit Court's Writ of Mandamus
Mandamus will lie to
compel performance of a nondiscretionary duty of an administrative officer though another
remedy exists, where it appears that the official, under misapprehension of law, refuses
to recognize the nature and scope of his duty and proceeds on the belief that he has
discretion to do or not to do the thing demanded of him. Syllabus Point 4, Walter v.
Ritchie, 156 W.Va. 98, 191 S.E.2d 275 (1972).
Before the West Virginia Division of
Environmental Protection ("DEP") will issue an NPDES permit to regulate storm
water discharged from construction sites, the DEP requires the developer of the land to
supply proof of compliance with applicable local zoning and planning requirements. The
NPDES permit application instructions themselves state that the failure to supply such
proof "may delay the permit or cause it to be denied."See footnote 5 5 In this case Potomac Edison is seeking
to compel the Planning Commission to issue a statement to the effect that Potomac Edison
is in compliance with local zoning ordinances, so that Potomac Edison may receive an NPDES
permit for the development of the 10.05 acre plot of land and the construction of a power
substation.
The appellee argues that the Planning
Commission has no authority to "usurp" or "contradict," through the
application of zoning regulations, a valid condemnation order issued by a circuit court
pursuant to W.Va. Code, 54-1-1 to -12. Potomac Edison contends that the Planning
Commission has a nondiscretionary duty to comply with a valid condemnation order -- and in
this case, that duty includes a duty to issue all necessary permits showing Potomac Edison
is in compliance with Jefferson County zoning ordinances, so that Potomac Edison may
receive an NPDES permit and develop the property taken by eminent domain. Potomac Edison
therefore argues that the Planning Commission acted under a "misapprehension" of
the law of eminent domain, and mandamus is warranted to compel the Planning Commission to
issue the permits necessary to the construction of a power substation.
After reviewing the record in this case,
we are unable to agree that the Planning Commission had a duty to issue a notice that
Potomac Edison is in compliance with the Jefferson County land use regulations, because
Potomac Edison entirely failed to submit to the zoning process.
The record in this case reveals that in
the years preceding and subsequent to the condemnation of the disputed 10.05 acres,
appellee Potomac Edison was aware that the construction of a power substation was not
within the Planning Commission's zoning and planning regulations and guidelines. The
appellee was advised of the procedure for seeking a variance or conditional use. However,
Potomac Edison circumvented that process by filing a petition in the circuit court for a
writ of mandamus.
We see nothing in the record before us
that indicates that the Planning Commission has attempted to absolutely and finally
prevent Potomac Edison from constructing its power substation. Because Potomac Edison
refused to act in accordance with the land use regulations and procedures, or seek a
variance or conditional use permit under the regulations, and has not shown why it is with
all diligence unable to comply with the current restrictions, it cannot be said that
Potomac Edison is unfairly impacted by the Jefferson County land use regulations.
We note Potomac Edison's concerns that the
zealous application of zoning and planning regulations could, theoretically, unreasonably
interfere with a public utility's operations. Because electric power is necessary for the
public health, safety and welfare, and because electricity is often distributed by an
electric utility to a large region crossing many local government jurisdictions, it seems
clear that local planning and zoning agencies should apply land use restrictions with
great restraint. We are in agreement with those legal commentators who suggest that public
utilities should enjoy a "favored" status. While a public utility must submit to
local land use regulations, local zoning and planning agencies must take a balanced
approach to the regulation of utilities. Local governments may, in the public interest,
provide reasonable parameters for land use; but local governments cannot effectively
prohibit a utility from conducting its necessary activities, and thereby "dump"
the construction of utility facilities on other jurisdictions. See, S. Williams,
Limiting Local Zoning Regulation of Electric Utilities: A Balanced Approach in the Public
Interest, 23 U.Balt.L.Rev. 565 (1995), and cases and treatises cited therein.
After carefully reviewing
the record, we cannot say that the Planning Commission had a nondiscretionary duty to find
that Potomac Edison was in compliance with Jefferson County planning and zoning
ordinances. Accordingly, the circuit court erred in issuing the writ of mandamus, and the
order must be reversed.
IV.
Conclusion
For the foregoing reasons,
the August 8, 1997 order of the Circuit Court of Jefferson County is reversed.
Reversed.
Footnote: 1
1 By the term "land use regulations" we mean both zoning and planning regulations. "'Zoning' is concerned with whether a particular area of a community may be used for a particular purpose, while 'planning' involves how that use is undertaken." Syllabus Point 1, Kaufman v. Planning & Zoning Comm'n of City of Fairmont, 171 W.Va. 174, 298 S.E.2d 148 (1982).Footnote: 2
2 The land then belonged to the Murall Limited Partnership. The Potomac Edison Co. v. Murall Limited Partnership, et al., Circuit Court of Jefferson Co., Civil Action No. 96-P- 62.Footnote: 3
3 The condemnation of this parcel created a subdivision of a larger parcel. This subdivision triggered the Planning Commission's jurisdiction to regulate the construction of improvements, use and subdivision of the property.Footnote: 4
4 The National Pollutant Discharge Elimination System ("NPDES") is a part of the federal Clean Water Act, 33 U.S.C. § 1251, et seq., and is normally administered by the West Virginia Division of Environmental Protection. However, on March 15, 1993, the Division of Environmental Protection reached a "memorandum of understanding" with the Planning Commission allowing the Planning Commission to act as an agent for the State in the storm water permitting process. This procedure allows the Planning Commission to coordinate the NPDES process with its own zoning requirements.Footnote: 5
5 The DEP has promulgated "Instructions to Complete A Site Registration Application Form For the General WV/NPDES Permit For Storm Water Associated With Industrial (Construction) Activity In West Virginia" which states, in part: