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12/17/2014 (2)
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12/17/2014 (2)
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Last modified
4/4/2018 3:41:12 PM
Creation date
12/20/2016 11:34:31 AM
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Meetings
Meeting Type
BCC Regular Meeting
Document Type
Agenda Packet
Meeting Date
12/17/2014
Meeting Body
Town of Indian River Shores
City of Vero Beach
Subject
Mediation Meeting Electric Utilities
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Storey v. Mayo, 77 P.U.R.3d 411 (1968) <br />217 So.2d 304 <br />I note conclusions in the majority opinion that the purpose of <br />the territorial agreement is to curtail 'duplicating, paralleling <br />and overlapping distributions systems in the affected areas; <br />that this 'overlapping' marred the appearance of the <br />community and substantially increased the cost of service <br />per customer 'because they simply mean that two separate <br />systems are being supplied and maintained to serve an area <br />when one should be sufficient.' The objecting customers give <br />not the slightest indication they are dissatisfied with the cost <br />of service to them. On the contrary, they allege they are <br />content and wish to remain paying customers of the private <br />utility. From my reading of the record I find no substantial <br />support for these conclusions or that any comprehensive <br />hearing was afforded Petitioners to voice their objections. <br />On the basis of this record, I conclude the convenience <br />of the two utilities -primarily the interest of the municipal <br />electric utility -was the paramount objective served by the <br />agreement, rather than the interest of the consumers. I get <br />the impression from the record the private electric company <br />yielded to the demands of the municipality to surrenderthe <br />subject suburban territory in order to 'keep peace' with the <br />City, since there had been wrangling between the two utilities <br />concerning which should provide utility service in the subject <br />area for a number of years. I do not subscribe to the view <br />that long standing consumers of a particular electric company <br />have no substantial interest in the status quo of their existing <br />service, but may be required by the private utility, with the <br />approval of the Commission, to thereafter obtain electric <br />power from the City. Especially is this so where there is <br />no showing the private company will suffer economic loss <br />by continuing to serve such consumers, but is complacently <br />agreeable for public relations or policy considerations to yield <br />these consumers to the City. <br />In 43 AmJur. Public Utilities and Services, s 78,'the text at <br />page 621 reads in part: <br />' * • * An electric company may not cease to serve the <br />public because the city, in constructing a competing system, <br />has created conditions rendering continued service dangerous <br />and refuses to alter them. (Citing Alabama Power Co. v. <br />City of Guntersville, 236 Ala. 503, 183 So. 396, 119 A.L.R. <br />429.) Where a public service company does not show that a <br />branch of service which it wishes to discontinue results in a <br />loss,' permission to discontinue will generally be refused. * * <br />*' (Citing 21 A.L.R. 578) <br />In conclusion, it appears tome that customers who have long <br />been served by a private power company have a substantial <br />property right to continue receiving electric current from that <br />company; that whatever competition exists between utility <br />companies should not be looked upon with disfavor but <br />should be eliminated only in extreme circumstances where <br />it is apparent the economic interests of the utilities, or of <br />one of them, are being jeopardized by such competition <br />to the disadvantage of the consuming public; that unless <br />the Legislature specifically grants authority to the Public <br />Service Commission to approve divisions of service territory <br />between utility companies and 'transfer customers' therein, <br />such authority should not be implied by the Commission, and <br />especially should this be so where the Commission has not <br />regulatory jurisdiction supervising the supplying of power by <br />municipal utilities. <br />I believe the majority decision will come as a surprise <br />to electricity consumers who reside within suburban areas <br />outside cities and have long been served by a private utility <br />company that there is a possibility that at some time in the <br />future they maybe 'transferred' as customers from the private <br />electric company and become customers of the adjacent city <br />electric utility. <br />Parallel Citations ' <br />217 So.2d 304 <br />End of Document <br />02014 Thomson Reuters. No claim to original U.S. Government Works. <br />,' ex:tai.`iNext © 2014 Thomson Reuters. No claim to original U.S. Govemment Works. 5 <br />53 <br />
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