Opinion ID: 553340
Heading Depth: 2
Heading Rank: 1

Heading: VDPS's Capacity to Sue MMWEC for Monetary Damages

Text: 10 We disagree with the district court's determination that VDPS had no statutory authority to sue an out-of-state electrical wholesaler for money damages and, consequently, lacked the authority to intervene in this action. 11 VDPS has the statutory duty to supervise Vermont electric cooperatives. Vt.Stat.Ann. tit. 30, Sec. 2(a)(12). Municipal and investor-owned utilities also are subject to VDPS's supervision. Id. Secs. 201(a), 203. VDPS supervises the utilities by reviewing proposed changes in rate schedules and by representing the consuming public before the Vermont Public Service Board (Board). Id. Sec. 2(a)(6). VDPS may investigate and prosecute the complaints of ratepayers before the Board, id. Sec. 208, as well as bring proceedings to enjoin violations of state law by public service corporations. Id. Sec. 32. Although the Board is the final arbiter of the reasonableness of utility rates, id. Secs. 218(a), 226(a), (b), 227, VDPS, as advocate for the ratepayer, may challenge the actions and rates of the utilities. Id. Secs. 2(a)(6), 217. Finally, VDPS may exercise its jurisdiction over electrical cooperatives and other such public service corporations so far as may be necessary to enable [it] to perform the duties and exercise the powers conferred upon [it] by law. Id. Sec. 203. 12 Under Vermont law, an administrative agency has only such powers as are expressly conferred upon it by the legislature, together with such incidental powers expressly granted or necessarily implied as are necessary to the full exercise of those granted. Trybulski v. Bellows Falls Hydro-Elec. Corp., 112 Vt. 1, 7, 20 A.2d 117, 120 (1941). Because VDPS's purpose in the instant suit is to ensure that monies improperly paid to MMWEC are recovered and, if appropriate, distributed to the ratepayers, its interest arises from its role as advocate for the consuming public and supervisor of state electrical cooperatives. Cf. Vermont Dep't of Pub. Serv. v. Gallagher, No. S34-85LC (LaMoille Sup.Ct. Aug. 26, 1985) (VDPS has power to sue electric cooperative for money damages based on improper bonus payment to employee). 13 Furthermore, since the district court's finding of no capacity, the Vermont legislature has passed and signed into law Bill No. 379 to clarify existing law to expressly authorize the department of public service to represent the ratepayers of this state in legal proceedings. Bill No. 379 provides:Notwithstanding any other law to the contrary the department of public service is authorized to represent the interests of the state and Vermont ratepayers in a certain pending legal proceeding in the United States District Court for the District of Vermont entitled, Washington Electric Cooperative, Inc. v. Massachusetts Municipal Wholesale Electric Company, Civil Action No. 89-94, or in any other legal proceeding arising out of the Project No. 6 Sales Agreements. 14 S. Bill 379, 60th Leg., 2d Sess., 1989 Vt. Laws 42. At the very least, Bill No. 379 ratifies VDPS's interpretation of its own statutory powers, and, in any event, provides a clear legislative mandate for the courts to follow. See In re Spencer, 152 Vt. 330, 336-37, 566 A.2d 959, 962 (1989) (legislative ratification of agency's interpretation of own authority must be enforced by courts). 15 Contrary to MMWEC's contention, Bill No. 379 does not conflict with existing law. See Cambridge v. Underhill, 124 Vt. 237, 241, 204 A.2d 155, 158 (1964) (If the circumstances clearly indicate clarification to be intended, it would be absurd ... to derive [from a new act] an interpretation of a prior statute contrary to all other indications of legislative intent.). Thus, a remand so that the court most familiar with Vermont laws can interpret Bill No. 379, as suggested by MMWEC, is not necessary; the Vermont Supreme Court already has allowed VDPS to sue MMWEC in the proceedings in which it declared the sales agreements void ab initio. Vermont Dep't of Pub. Serv., 151 Vt. at 75, 558 A.2d at 216. Although that proceeding was a suit in equity and VDPS seeks money damages here, we see no significance in this difference insofar as capacity to sue is concerned, and MMWEC indicates none. 16 Similarly, MMWEC argues mistakenly that Bill No. 379 violates federal and state constitutional principles that prohibit legislative impairment of contracts and unequal treatment under the law. Because we find that VDPS had the capacity to sue MMWEC on the contract before its passage, Bill No. 379 does not retroactively impair the obligation of contracts in violation of article 1, section 10 of the United States Constitution. Furthermore, Bill No. 379 deals only with a procedural matter and would not affect the substantive rights of any party to the sales agreement. Also, Bill No. 379 presents no equal protection problems under either the fourteenth amendment or chapter 1, article 7 of the Vermont Constitution because it reinforces VDPS's ability to advocate the rights of all energy consumers in the state. 17