May 26, 2013

Colorado Court of Appeals: Series of Exchanged E-Mails Did Not Constitute “Meeting” for Purposes of Colorado’s Open Meetings Law

The Colorado Court of Appeals issued its opinion in Intermountain Rural Electric Association v. Colorado Public Utilities Commission on July 19, 2012.

Colorado Open Meetings Law—E-mail Exchanges—Summary Judgment.

This case raises the issue of whether e-mail exchanges among members of the Public Utilities Commission (PUC) regarding proposed legislation constituted “meetings” for purposes of the Colorado Open Meetings Law (OML). The Court of Appeals held that the exchanges did not constitute meetings and affirmed the trial court’s summary judgment in favor of defendants.

On March 15, 2010, a bill for the Clean Air–Clean Jobs Act (CACJA)was introduced in the House of Representatives. The next day, the director of the PUC provided testimony that the PUC did not oppose the legislation. Both Houses passed the bill and it was signed into law.

In early 2010, Kelly Nordini, a member of the Governor’s staff, e-mailed PUC Chairman Ron Binz seeking input on proposed language for inclusion in an earlier version of the bill. The language was suggested by Public Service Company of Colorado (PSCo). An e-mail conversation ensued among the Commissioners about the proposed legislation, and Nordini was copied on fifteen of eighteen e-mails. The content generally comprises edits to the draft legislative language and detailed discussion about the bill.

Intermountain Rural Electric Association (IREA) brought suit against the PUC, its Director, and the Commissioners in their official capacities, seeking a declaration that (1) the e-mails were “meetings” subject to the OML; (2) defendants violated the OML when they failed to provide notice of the meetings, make the meetings public, or enter an executive session; and (3) any formal action arising out of the e-mails was invalid.

Defendants moved for summary judgment, arguing the e-mails were not “meetings” under CRS § 24-6-402(1)(b). The trial court agreed and granted summary judgment in favor of defendants. On appeal, IREA argued it was error to determine the e-mails were not “convened to discuss public business.” The Court disagreed and affirmed.

The OML provides: “All meetings of two or more members of any state public body at which any public business is discussed or at which any formal action may be taken are declared to be public meetings open to the public at all times.” A “meeting” is “any kind of gathering, convened to discuss public business, in person, by telephone, electronically, or by other means of communication.” The parties agree that the exchange of e-mails was a “gathering” but dispute whether the e-mails discussed “public business.”

The Colorado Supreme Court has held that discussing public business (not defined in the statute) refers to a public body’s policy-making function. IREA claimed that the e-mails were part of the PUC’s policy-making process. The Court disagreed. It held that to prevail on an OML claim, a party must point to a pending action by the public body holding the meeting with regard to a rule, regulation, ordinance, or formal action by that public body that has a meaningful connection to the gathering in question. Here, the Court could not find that the hypothetical effect of providing input to the Governor’s staff with regard to draft language for a bill pending before the legislature, or advising a legislative committee that the PUC did not oppose the bill, constituted part of the PUC’s policy-making function.

The IREA argued that the e-mails were a “formal action” of the PUC because it is “authorized” to engage in discussions on pending legislative proposals. The Court stated that this argument failed to distinguish between “formal actions” of the PUC, which create public policy within the purview of the PUC’s policy-making powers, and other duties and actions of the PUC, which do not. Here, where the PUC was opining about potential legislation, it was not itself making public policy.

Summary and full case available here.

Colorado Supreme Court: Public Utilities Commission Did Not Abuse Discretion by Striking Substantial Portions of Testimony

The Colorado Supreme Court issued its opinion in Glustrom v. Colorado Public Utilities Commission on June 25, 2012.

Recovery of Costs—Unjust and Unreasonable Rate Order—“Used and Useful”—Exclusion of Testimony.

In 2005, with the approval of the Public Utilities Commission (PUC), the Public Service Company of Colorado (Xcel) began constructing a coal-fired electric power unit known as Comanche 3. When Xcel sought to recover a portion of its construction costs nearly four years later during a rate proceeding, Leslie Glustrom intervened. Glustrom sought to introduce testimony that Xcel acted improperly and, consequently, should not recover its costs. The PUC excluded most of her testimony, a ruling that Glustrom challenged. Glustrom separately challenged the depreciation rate and the possibility that Comanche 3 might not be “used and useful” at the time rates went into effect. The PUC denied her challenges, and the district court affirmed.

The Supreme Court held that the PUC did not abuse its discretion when it struck substantial portions of Glustrom’s testimony pursuant to the Colorado Rules of Evidence. Further, the depreciation rate approved by the PUC was established pursuant to law and in accordance with the evidence. The Court also held that the PUC was free to exercise its discretion in departing from a strict application of the “used and useful” principle. Glustrom failed to meet her burden in showing why such a departure here would result in a rate that is unjust and unreasonable in its consequences.

Summary and full case available here.

SB 12-183: Directing the Public Utilities Commission to Receive Data Regarding Low-Income Energy Consumers in Order to Prevent Utility Shut Off During Extremely Cold Weather

On April 30, 2012, Sen. Betty Boyd introduced SB 12-183 – Concerning Restrictions on a Utility’s Ability to Disconnect Certain Residential Customers’ Utility Service, and, In Connection Therewith, Directing the Commission on Low-Income Energy Assistance to Review and Report on the Effectiveness of Existing Measures Concerning Discontinuance of Service and Low-Income Rate Relief. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Currently, utilities providing gas and electric services to residential customers are prohibited from terminating service during certain periods if the termination would be especially dangerous to the health or safety of the customer.

The bill adds additional circumstances under which utilities providing gas or electric heating services for residential customers may not disconnect a residential customer’s service between the months of November and March if the customer demonstrates that he or she is a member of a low-income household or that he or she, or a member of his or her household, is in the military and has been deployed on active duty. In addition to demonstrating his or her income eligibility, a residential customer who is a member of a low-income household must apply for a payment plan with the utility and demonstrate his or her eligibility, and application, for low-income energy assistance to be exempt from disconnection between the months of November and March.

On May 2, the Health and Human Services Committee amended the bill and referred it to the Committee on Appropriations. On May 4, the Appropriations Committee amended the bill and moved it to the floor of the Senate for consideration on 2nd Reading.

Since this summary, the bill passed a 3rd Reading in the Senate and was referred to the House Appropriations Committee. It was unamended in Appropriations and passed a 2nd Reading on the House floor.

Summaries of other featured bills can be found here.

HB 12-1016: Allowing Motion to Disqualify Public Utilities Commissioner for Failure to Be Impartial

On January 11, 2012, Rep. Balmer introduced HB 12-1016 – Concerning limiting ex parte communications by commissioners of the public utilities commission. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill allows a party to a proceeding before the public utilities commission (PUC) to file a motion seeking the disqualification of a public utilities commissioner or an administrative law judge for failure to be impartial. A district court may stay or suspend the proceedings of the PUC if the PUC fails to disqualify a commissioner from the proceedings. If the disqualification of a commissioner results in the loss of a quorum, the decision rendered by a commissioner designated as a hearing officer or by an administrative law judge is the final decision of the PUC. The rule of necessity, which states that under some circumstances an adjudicator must hear a case even if the adjudicator has an interest in the case, does not apply.

The bill specifies that the standards contained in the Colorado code of judicial conduct apply to commissioners and PUC administrative law judges. The bill requires the director to post memoranda regarding ex parte communications by commissioners and administrative law judges on the PUC’s web site within five business days. Discussions by commissioners or administrative law judges on pending legislative proposals will no longer be exempted from disclosure as an “adjudicatory proceeding”.

Summaries of other featured bills can be found here.

DORA Releases Information Regarding New Transportation Rules Going into Effect Today

DORA issued a press release on Wednesday, August 10, 2011 regarding new Public Utilities Commission (PUC) transportation rules. The emergency rules implement two bills that were enacted by the Colorado Legislature earlier this year that became effective today.

The PUC adopted emergency rules last week that will remain in place for 210 days, or until permanent rules become effective, whichever period is shorter. Emergency rules were necessary to ensure that there was no lapse of regulations as a result of the recent statutory changes.

The new rules implement Senate Bill 11-180, which amended the authority of taxicabs to pick up passengers outside of their assigned geographic areas, and House Bill 11-1198, which reorganized the statutes governing motor carriers and made changes to regulatory authority granted to the PUC.

SB 11-180 permitted taxis operating in Colorado to pick up passengers at any point in the state when the taxi has dropped off passengers in close proximity to that point, except if that drop-off point is an airport. In the emergency rules, the PUC defined “close proximity” as within a 1-mile radius of the drop-off point, and within 20 minutes of the drop-off time.

HB 11-1198 repealed Articles 10, 11, 13, 14 and 16 of Title 40 of the Colorado Revised Statutes and created a new Article 10.1 in Title 40, organized into five parts covering the various types of transportation providers and services. In addition to reorganizing the statutes, the new law made certain substantive changes requiring emergency rule implementation, including:

  • Clarifying the services authorized under a children’s activity bus permit;
  • Transferring all safety jurisdiction over household goods movers from the PUC to the Colorado Department of Public Safety;
  • Standardizing provisions relating to the conduct of fingerprint-based criminal history record checks, both on initial issuance and resubmission, as a condition of continued qualification to drive for a motor carrier; and
  • Requiring towing carriers to maintain workers’ compensation insurance and post a $50,000 bond to ensure payment of any civil penalties assessed by the Commission.

The emergency rules can be viewed on the PUC website.

SB 11-262: Directing Colorado PUC to Withdraw Price Controls for All Services Except Basic Local Exchange and Emergency

On April 25, 2011, Sens. Mark Scheffel, R-Castle Rock, and Lois Tochtrop, D-Thornton, and Reps. Carole Murray, R-Castle Rock, and Angela Williams, D-Denver, introduced SB 11-262 – Concerning the regulation of telecommunications service by the Public Utilities Commission, and, in connection therewith, eliminating price regulation for all but basic local exchange service and emergency service and phasing out the high-cost support mechanism. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

The bill repeals and reenacts the existing statutes governing regulation of telecommunications by the Colorado public utilities commission (PUC). Retail and wholesale services are treated separately. The PUC is directed to withdraw price controls for all services except basic local exchange service and emergency service, and to periodically reexamine whether competition has advanced sufficiently in particular geographic areas so that price controls on these services may also be withdrawn. The bill preserves the PUC’s jurisdiction over service quality, including the authority to receive and resolve consumer complaints.

In addition, the bill:

  • Adds voice-over-internet-protocol (VoIP) service as a recognized alternative for providing voice communications, and includes VoIP providers among those who must contribute to the funding of basic service in high-cost areas and emergency service as long as funding mechanisms for those services continue;
  • Requires registration for all carriers but eliminates the need for a certificate of public convenience and necessity for carriers other than those that provide regulated basic service or emergency service; and

Requires wholesale carriers to incrementally adjust their rates for access over a period of time until their intrastate rates match their interstate rates as filed with the federal communications commission. Assigned to the Business, Labor, & Technology Committee; the bill is scheduled for committee review on Monday, May 2 at 1:30p.m.

Since this summary, the Senate Committee on Business, Labor and Technology postponed the bill indefinitely.

Summaries of other featured bills can be found here.

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2013-05-26 08:04:33