Narrative Opinion Summary
The Supreme Court of South Carolina reviewed an appeal by the City of Camden against a decision by the Public Service Commission (PSC) mandating the sale of Camden's electric facilities to Lynches River Electric Cooperative and assigning service rights in the Westville community to the cooperative. Westville residents had petitioned the PSC for better service and lower rates, expressing dissatisfaction with Camden's utility management. The court found that Camden had historically serviced Westville since 1940 and was not required to obtain a certificate of public convenience and necessity due to the contiguous nature of the service area under S.C. Code Ann. 58-27-1230. The PSC's authority is limited to powers explicitly granted by statute, and S.C. Code Ann. 58-27-640 does not empower the PSC to reassign areas already serviced by a municipality. The court held that the PSC overstepped its statutory authority, as municipal service to Westville was lawful, and reversed the PSC's order. The case was remanded for further proceedings consistent with the court's findings, reinforcing the principles governing municipal utility service rights and the scope of the PSC's regulatory powers.
Legal Issues Addressed
Assignment of Electric Service Rights in Contiguous Areassubscribe to see similar legal issues
Application: The PSC's decision to assign Westville to Lynches River was reversed because Camden had been servicing the area lawfully under existing statutes.
Reasoning: No statute permits the PSC to assign this area to a co-op while the City continues to provide service.
Limitations on Public Service Commission's Powerssubscribe to see similar legal issues
Application: The PSC can only exercise powers explicitly granted or reasonably implied by the General Assembly, and may not assign municipally served areas to cooperatives.
Reasoning: The Public Service Commission (PSC) possesses limited powers as defined by the General Assembly, only having authority explicitly granted or reasonably implied.
Municipal Utility Service Rights under S.C. Code Ann. 58-27-1230subscribe to see similar legal issues
Application: Camden was justified in extending electric service to Westville without PSC approval, as the area was contiguous and not previously served by another utility.
Reasoning: The court concluded that Camden's service to Westville was justified without PSC approval, as the area had no prior electric service and was contiguous to Camden's existing territory.
Public Service Commission's Authority under S.C. Code Ann. 58-27-640subscribe to see similar legal issues
Application: The PSC lacks the statutory authority to assign areas lawfully serviced by a municipality to a cooperative, as no statute grants such power.
Reasoning: The court ultimately ruled that the PSC overstepped its authority, as no statute granted it the power to assign Westville to Lynches River.