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Ozarks Electric Cooperative Corp. v. Harrelson
Citations: 301 Ark. 123; 782 S.W.2d 570; 1990 Ark. LEXIS 20Docket: 89-266
Court: Supreme Court of Arkansas; January 16, 1990; Arkansas; State Supreme Court
Vernon and Norma Mae Harrelson, residents of Washington County, have been customers of Ozarks Electric Cooperative since 1973. In February 1988, Ozarks discovered that the Harrelsons' electric meter was defective, having failed to register any usage since July 1987. During this eleven-month period, the Harrelsons received minimal monthly bills of $7.87, significantly lower than their typical bills of $70-$80. Ozarks reconstructed their charges, estimating a total of $790.29 based on the Arkansas Public Service Commission’s guidelines. The Harrelsons refused to pay the revised bill, leading Ozarks to discontinue their electrical service. The Harrelsons sought a temporary restraining order to reconnect service, and the case was moved to chancery court, where the chancellor ruled that the Harrelsons owed charges only for estimated usage after February 1988. Ozarks appealed, arguing that the chancellor erred in denying its motion to dismiss for lack of subject matter jurisdiction. The court referenced a prior case, Ozarks Electrical Cooperative Corporation v. Turner, which involved similar jurisdictional issues regarding tampering with an electric meter. In that case, the court determined that disputes of this nature should not fall under the jurisdiction of the Public Service Commission but rather be adjudicated based on existing law and past actions. Following the Turner decision, the Arkansas General Assembly passed Act 758 of 1985, clarifying that such disputes should primarily be under the jurisdiction of the Public Service Commission, reflecting the legislature's intent to override the Turner ruling. The Arkansas Public Service Commission (Commission) is granted authority to resolve disputes between consumers and public utilities concerning public rights governed by public utility statutes. These rights are defined by laws, rules, and regulations established by the General Assembly and the Commission. The Commission's jurisdiction is primary, meaning it must be exhausted before any court can intervene. It has quasi-judicial powers to adjudicate individual cases while also holding traditional legislative authority to act in the public interest. The Commission can conduct investigations, hold public hearings, and mandate monetary refunds, billing credits, or other relief as required by law. Its responsibilities include setting standards for the measurement of utility services, prescribing regulations for their examination and testing, and ensuring the accuracy of measurement devices. In this case, the rights involved relate to a specific Commission regulation regarding the delivery, measurement, and cost of electrical power to consumers, which falls under the Commission's primary jurisdiction. The ruling reverses and dismisses the suit, emphasizing that billing corrections must be based on the customer's metered consumption for the past six months if the exact date of meter malfunction is unknown, applying current rates to the adjusted consumption for any necessary refunds or charges.