Court Opinion

ID: 9702863
Source: CourtListenerOpinion
Date Created: 2023-08-25 23:28:12.338756+00
Date Added: 2024-06-11T18:21:42.372710
License: Public Domain

NEWMAN, Judge
dissenting.
I agree with the disposition of the majority with respect to the first issue of whether the doctrine of collateral estoppel was applicable to the matter. However, I disagree with the majority on the next issue of whether Public Service and MPW were operating illegally by providing utility services for compensation without certificates of public convenience and without having an approved tariff. Therefore, I dissent in part for the reasons that follow.
The majority holds that Public Service and MPW were operating illegally because they did not have certificates of public convenience prior to rendering service to the customers of the “Escape,” and they charged rates without having an approved tariff with the PUC. The majority’s holding effectively abolishes the principle of “de facto” utilities, a useful and practical method that the PUC, in its regulatory capacity, has consistently applied. In so doing, the majority unfortunately creates more problems than it intended to solve.
*702“De facto” public utilities provide a beneficial and effective means for the PUC to ensure that customers are not without necessary public services. PUC has required “de facto” utilities to continue providing service to their customers during the pendency of a Section 1102 application proceeding and to receive a reasonable rate in return. For instance, the PUC, in this case, specifically provided that Public Service and MPW would continue to charge the rates that were in effect at the time the companies applied for certification. Moreover, it is important to note that the PUC required Public Service and MPW to place all monies collected into a separate account in case the rate charged is later deemed unreasonable pursuant to Section 1312 of the Code, 66 Pa.C.S. § 1312. Under this regulatory scheme, the system would function effectively because customers would receive their utility services and the companies would receive a reasonable rate in return.
Instead, the majority has created a regulatory nightmare. For example, a “de facto” utility will not be able to provide service to its customers until the PUC furnishes a certificate of public convenience. Ideally, the PUC could issue a certificate of public convenience within a day’s notice, however, it is beyond peradventure that under today’s regulatory scheme, multiple practical problems foreclose such swift action.1 Moreover, the utility also will not receive payment for any service provided to customers until the PUC provides it with an approved tariff setting forth acceptable rates. As this case evidences, this result is patently unfair and provides an unjust ■windfall to the customers of the “Escape.” Finally, until a certificate of convenience is issued and a tariff is approved, customers of the “Escape” will scramble to acquire water and sewer service. It is a strong possibility that this service will be unregulated, inefficient, and unsafe.
*703Accordingly, I dissent in part and would affirm the order of the PUC.

. In this case, Public Service and MPW filed applications for certificates of public convenience on August 1, 1991 and April 17, 1992, respectively. The record is silent as to why the PUC has taken an inordinate amount of time in providing the companies with the required certificates. The court is aware of the difficulty involved and the amount of time needed to review complicated documentation in these matters; however, the period here appears excessive, and this court hopes in the future that these matters are decided more promptly.