WRIT
GRANTED
Cassius H. Toon
James
A. Dodrill
Richard E. Hitt
Glen
Allen, Virginia
Charleston, West Virginia
Attorney
for the Respondent
Attorneys for the Petitioner
The Opinion of the Court was delivered PER CURIAM.
CHIEF JUSTICE DAVIS dissents and reserves the right to file a dissenting opinion.
1. 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). Syl. Pt. 2, Stapleton v. Board of Educ.
of County of Lincoln, 204 W.Va. 368, 512 S.E.2d 881 (1998).
2. 'Mandamus
is a proper remedy to require the performance of a nondiscretionary duty by
various governmental agencies or bodies.' Syllabus Point 1, State ex rel.
Allstate Insurance Co. v. Union Public Service District, 151 W.Va. 207,
151 S.E.2d 102 (1966). Syl. Pt. 4, State ex rel. Affiliated Constr.
Trades Found. v. Vieweg, 205 W.Va. 687, 520 S.E.2d 854 (1999).
4. In reviewing a Public Service Commission order,
we will first determine whether the Commission's order, viewed in light of the
relevant facts and of the Commission's broad regulatory duties, abused or exceeded
its authority. We will examine the manner in which the Commission has employed
the methods of regulation which it has itself selected, and must decide whether
each of the order's essential elements is supported by substantial evidence.
Finally, we will determine whether the order may reasonably be expected to maintain
financial integrity, attract necessary capital, and fairly compensate investors
for the risks they have assumed, and yet provide appropriate protection to the
relevant public interests, both existing and foreseeable. The court's responsibility
is not to supplant the Commission's balance of these interests with one more
nearly to its liking, but instead to assure itself that the Commission has given
reasoned consideration to each of the pertinent factors. Syl. Pt. 2, Monongahela
Power Co. v. Public Service Comm'n, 166 W.Va. 423, 276 S.E.2d 179 (1981). 5. The detailed standard for our review of
an order of the Public Service Commission contained in Syllabus Point 2 of
Monongahela Power Co. v. Public Service Commission, 166 W.Va. 423, 276
S.E.2d 179 (1981), may be summarized as follows: (1) whether the Commission
exceeded its statutory jurisdiction and powers; (2) whether there is adequate
evidence to support the Commission's findings; and, (3) whether the substantive
result of the Commission's order is proper. Syl. Pt. 1, Central West
Virginia Refuse, Inc. v. Public Service Commission, 190 W.Va. 416, 438
S.E.2d 596 (1993).
6. ''[A]n order of the public service commission
based upon its finding of facts will not be disturbed unless such finding is
contrary to the evidence, or is without evidence to support it, or is arbitrary,
or results from a misapplication of legal principles.' United Fuel Gas Company
v. The Public Service Commission, 143 W.Va. 33, 99 S.E.2d 1 (1957).
Syllabus Point 5, in part, Boggs v. Public Service Comm'n, 154 W.Va.
146, 174 S.E.2d 331 (1970).' Syllabus Point 1, Broadmoor/Timberline Apartments
v. Public Service Commission, 180 W.Va. 387, 376 S.E.2d 593 (1988).
Syl. Pt. 1, Sexton v. Public Service Commission, 188 W.Va. 305, 423 S.E.2d
914 (1992).
3. 'To
entitle one to a writ of mandamus, the party seeking the writ must show a
clear legal right thereto and a corresponding duty on the respondent to perform
the act demanded.' Syl. Pt. 2, State ex rel. Cooke v. Jarrell, 154
W.Va. 542, 177 S.E.2d 214 (1970). Syl. Pt. 1, Dadisman v. Moore,
181 W.Va. 779, 384 S.E.2d 816 (1988).
7. The Public Service Commission was created by
the Legislature for the purpose of exercising regulatory authority over public
utilities. Its function is to require such entities to perform in a manner designed
to safeguard the interests of the public and the utilities. Its primary purpose
is to serve the interests of the public. Boggs v. Public Service Commission,
154 W.Va. 146, 174 S.E.2d 331 (1970). Syl. Pt. 1, West Virginia-Citizen
Action Group v. Public Service Commission, 175 W.Va. 39, 330 S.E.2d 849
(1985).
8. When
a provision of a municipal ordinance is inconsistent or in conflict with a
statute enacted by the Legislature the statute prevails and the municipal
ordinance is of no force and effect. Syl. Pt. 1, Vector Co. v. Board
of Zoning Appeals of the City of Martinsburg, 155 W.Va. 362, 184 S.E.2d
301 (1971
).
Per Curiam:
Upon review of Mr. Neff's complaint, the PSC, by order
dated June 26, 2001, directed Fayetteville to refund the $25.00 sewer reconnection
fee to Mr. Neff, explaining that the practice of charging a reconnection fee
for a service which had not been disconnected was inherently unfair and improper.
(See footnote 3)
It further ordered that Fayetteville's new ordinance be rejected insofar
as it permitted the assessment of a sewer reconnection fee where the sewer service
had not been disconnected.
On February 13, 2002, the PSC informed Fayetteville
that the ordinance in question also violated West Virginia Code § 8-20-10(c)
(2001) (Supp. 2002), to the extent that it permitted a landlord to be held
liable for a tenant's delinquency.
(See footnote 4) Counsel for Fayetteville responded by letter dated February 26, 2002, and informed the
PSC that although its interpretation of the statute was incorrect, a clarifying
amendment would be considered to make it abundantly clear that the necessary
contractual relationship exists not only between the municipally operated
public utility and the tenant, but also between the utility and the real property
owner.
Counsel for Fayetteville further emphasized that
West Virginia Code § 24-2-3 (1983) (Repl. Vol. 2001) specifies that the
rate making authority exercised by the PSC over other public utilities does
not apply to municipal utilities and that the PSC has no authority over rates
or charges of a municipality beyond that set forth in West Virginia Code §
24-2-4b. Subsequent to Fayetteville's refusal to comply with the June 26,
2001, PSC order and West Virginia Code § 8-20-10, the PSC filed this
writ of mandamus in this Court.
This Court will utilize the mechanism of a writ of mandamus as extraordinary relief when a public officer or body has failed in the performance of a mandatory, non-delegable duty. 'Mandamus is a proper remedy to require the performance of a nondiscretionary duty by various governmental agencies or bodies.' Syllabus Point 1, State ex rel. Allstate Insurance Co. v. Union Public Service District, 151 W.Va. 207, 151 S.E.2d 102 (1966). Syl. Pt. 4, State ex rel. Affiliated Constr. Trades Found. v. Vieweg, 205 W.Va. 687, 520 S.E.2d 854 (1999). 'To entitle one to a writ of mandamus, the party seeking the writ must show a clear legal right thereto and a corresponding duty on the respondent to perform the act demanded.' Syl. Pt. 2, State ex rel. Cooke v. Jarrell, 154 W.Va. 542, 177 S.E.2d 214 (1970). Syl. Pt. 1, Dadisman v. Moore, 181 W.Va. 779, 384 S.E.2d 816 (1988).
With specific reference to the rights of the PSC to
relief through mandamus, this Court explained in State ex rel. Public Service
Commission v. Gore Water Association, 193 W. Va. 555, 457 S.E.2d 492 (1995),
that the PSC is authorized to compel obedience to its lawful orders through
mandamus or injunctive relief in the name of the State of West Virginia.
Id. at 557, 457 S.E.2d at 494. This Court's proper review of a PSC order
was set forth in syllabus point two of
The
extent of PSC authority over a municipality is central to resolution of this
matter. The PSC's considerable
powers concerning the establishment of rates for public utilities are developed
in West Virginia Code § 24-2-3, which states, in pertinent part, as follows: Resolution of the issues presently before this Court
must be founded upon an accurate understanding of the extent of the exemption
provided by West Virginia Code § 24-2- 4b. The statute merely exempts
municipalities from the rate approval sections of 24-2-4 and 24-2-4a; it does not deprive the PSC of jurisdiction over the municipality
or eliminate the PSC's authority to otherwise address issues of the municipally
operated public utilities. The rate making functions, statutorily limited
with regard to municipalities, are not identical to the adjudicatory functions.
(See footnote 5)
In exempting municipalities from the extremely detailed rate procedures
outlined in sections 24-2-4 and 24-2-4a, the statutory scheme does not remove
municipalities from the authority of the PSC to exercise its general powers
to require reasonable, non-discriminatory practices based primarily upon the
cost of service. Specifically, West Virginia Code § 24-2-4b(b) provides
that [a]ll rates and charges set by . . . municipally operated public
utilities . . . shall be just, reasonable, applied without unjust discrimination
or preference and based primarily on the costs of providing these services.
The exemption upon which Fayetteville relies simply does not reach the question
of what happens when a practice of a municipally operated public utility is
unreasonable. Nor does it inhibit the right of a consumer to allege unreasonableness or absence of
cost-based services.
(See footnote 6) It does not undermine the PSC's right or
obligation to discharge its regulatory responsibilities.
The [PSC] shall have the power
to enforce, originate, establish, change and promulgate tariffs, rates, joint
rates, tolls and schedules for all public utilities. . . . And whenever the
[PSC] shall, after hearing, find any existing rates . . . unjust, unreasonable,
insufficient or unjustly discriminatory or otherwise in violation of any of
the provisions of this chapter, the [PSC] shall by an order fix reasonable rates
. . . to be followed in the future in lieu of those found to be unjust, unreasonable,
insufficient or unjustly discriminatory or otherwise in violation of any provisions
of law [.]
In syllabus point one of West Virginia-Citizen Action Group v. Public Service
Commission, 175 W.Va. 39, 330 S.E.2d 849 (1985), this Court explained:
[t]he
Public Service Commission was created by the Legislature for the purpose of
exercising regulatory authority over public utilities. Its function is to require
such entities to perform in a manner designed to safeguard the interests of
the public and the utilities. Its primary purpose is to serve the interests
of the public. Boggs v. Public Service Commission, 154 W.Va. 146, 174
S.E.2d 331 (1970).
The PSC's jurisdiction is further derived from West Virginia Code § 24-2-7(a)
(1979) (Repl. Vol. 2001), which provides:
Whenever, under the provisions
of this chapter, the [PSC] shall find any regulations, measurements, practices,
acts or services to be unjust, unreasonable, insufficient or unjustly discriminatory,
or otherwise in violation of any provisions of this chapter, or shall find that
any service is inadequate, or that any service which is demanded cannot be reasonably
obtained, the [PSC] shall determine and declare,
and by order fix reasonable measurements, regulations, acts, practices or
services, to be furnished, imposed, observed and followed in the state in
lieu of those found to be unjust, unreasonable, insufficient, or unjustly
discriminatory, inadequate or otherwise in violation of this chapter, and
shall make such other order respecting the same as shall be just and reasonable.
The PSC's authority over rates and charges of municipalities,
however, is expressly limited by the statutory scheme. Fayetteville contends
that it is not controlled by the PSC scheme of regulation of rates and charges
since it is a municipality, citing West Virginia Code § 24-2-3 and §
24-2-4b as support for that proposition. West
Virginia Code § 24-2-3, in addition to providing more general powers
of the PSC, contains a decisive caveat, as follows: Provided, That the
commission may exercise such rate authority over municipal utilities only
under the circumstances set forth in section four-b of this article.
West Virginia Code § 24-2-4b(a)
also explains the limitation regarding authority over rates and charges of municipalities,
stating as follows, in relevant part: The rates and charges of . . . municipally
operated public utilities . . . are not subject to the rate approval provisions
of section four or four-a [§ 24-2-4 or § 24-2-4a] of this article,
but are subject to the limited rate provisions of this section.
Based
upon the statutory provisions regarding PSC authority, we find that the PSC
did not exceed its statutory authority by exercising jurisdiction over the
issues presented in Mr. Neff's complaint and the matters of statutory compliance
raised by the ordinance's reference to landlord liability. Properly exercising
its jurisdiction, the PSC found that Mr. Neff's sewer service had not been
disconnected and that it was consequently improper for the town to charge
him a reconnection fee. The PSC concluded as follows: In the present case, premised upon the distinct
language of the statute and the failed prior attempt by the City of Keyser
to circumvent the intent of the statute, the PSC concluded that Fayetteville's
ordinance was in violation of the statute. This Court has consistently held that [w]hen
a provision of a municipal ordinance is inconsistent or in conflict with a
statute enacted by the Legislature the statute prevails and the municipal
ordinance is of no force and effect. Syl. Pt. 1, Vector Co. v. Board
of Zoning Appeals, 155 W.Va. 362, 184 S.E.2d 301 (1971); see also
Hock v. City of Morgantown, 162 W. Va. 853, 253 S.E.2d 386 (1979).
Finding no indication that the PSC conclusion regarding the landlord statute
was
The Commission concludes it would be an unreasonable
practice for a utility and/or municipality, which provides both water and
sewer service, to charge two reconnection fees when only water service is
reconnected after being disconnected due to delinquent water and sewer bills
since the utility and/or municipality is physically making only one reconnection.
The PSC based these conclusions upon the facts of Mr. Neff's case and applicable
guidelines regarding imposition of reconnection fees. See 150 CSR 7-4.8.5a.B;
150 CSR 5-4.5.3a.B. Having reviewed
the PSC determination regarding imposition of reconnection fees, we find that the PSC findings are not
contrary to the evidence, without evidence to support them, arbitrary, or
result from a misapplication of legal principles.
Likewise, we find no reason to disturb the PSC's conclusions
with regard to its determination of the illegality of the ordinance holding
a landlord liable for a tenant's delinquency. Fayetteville's ordinance, quoted
above, attempts to hold a landlord liable for the delinquencies of the tenant,
and counsel for the town has asserted that such liability is justified based
upon the contractual relationship existing not only between the municipally
operated public utility and the tenant, but also between the utility and the
landlord. This means of establishing landlord liability was attempted by the
City of Keyser and challenged in the PSC forum in 1991. The administrative law
judge ruled that Keyser's ordinance conflicted with West Virginia Code §
8-20-10(c) and was void. The PSC affirmed the administrative law judge's findings,
articulating that a while a landlord may choose to contract directly with the
municipality if he seeks to furnish utilities as an element of the rental package,
the statute is not an instrument through which municipalities can compel a landlord
to contract with the municipality and to assume responsibility for the tenant's
delinquencies. This Court denied Keyser's petition for appeal from that PSC
decision.
of the following ordinance provision: Prior to restoration of sewer service which was previously disconnected for non-payment of sewer charges a reconnection charge of $25.00 shall be paid, in addition to any other penalties provided for in this Ordinance.
responsible for the payment of the sewer service charge. West Virginia
Code § 8-20-10(c) provides, in pertinent part, as follows:
That an owner of real property may not be held liable
for the delinquent rates, fees or charges for services or facilities of a
tenant, nor shall any lien attach to real property for the reason of delinquent
rates, fees or charges for services or facilities of a tenant of the real
property, unless the owner has contracted directly with the municipality to
purchase such services or facilities.