Chesapeake Utilities Corp. v. Delaware Public Service Commission

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE CHESAPEAKE UTILITIES . CORPORATION, : C.A. No. K17A-01-001 WLW : Kent County Appellant, ' V. DELAWARE PUBLIC SERVICE COMMISSION, Appellee. Oral Argument: May 12, 2017 Decided: June 7, 2017 ORDER Upon Appeal from a Decision of the DelaWare Public Service Commission. Reversed and Vacated. William O’Brien, Esquire, Associate General Counsel for Chesapeake Utilities Corporation, Daniel O’Brien, Esquire, Venable LLP, Wilmington, DelaWare, Brian M. Quinn, Esquire, pro hac vice, Venable LLP, Baltimore, Maryland; attorneys for Appellant Chesapeake Utilities Corporation. Todd A. Coomes, Esquire and Selena E. Molina, Esquire of Richards Layton & Finger; Wilmington, DelaWare; attorneys for Appellee DelaWare Association of Alternative Energy Providers, Inc. Brenda R. Mayrack, Esquire of the Department of Justice, Dover, DelaWare; attorney for the DelaWare Public Service Cornmission WITHAM, R.J. Chesapeake Utilities Corporation v. DelaWare Public Service Commission C.A. No. Kl7A-01-001 WLW June 7, 2017 This appeal from the DelaWare Public Service Commission requires the Court to resolve a single issue: may an unregulated competitor intervene to protect its interest in a regulated utility’s rate proceeding? Applicant-BeloW/Appellant Chesapeake Utilities Corporation (“Chesapeake”) appeals from two orders that Were part of a final determination of the DelaWare Public Service Commission (“the Commission”). The first order grants the petition of Intervenor-BeloW/Appellee DelaWare Association of Alternative Energy Providers, Inc. (DAAEP) to intervene. The second denies Chesapeake’s petition for an interlocutory appeal and affirms the earlier order granting intervention. This Court finds that the Commission exceeded its statutory authority When it granted DAAEP’s petition to intervene in a public utility’s rate case because the sole interest claimed by the intervenor Was as an unregulated competitor to the public utility. The intervention orders of the hearing examiner and the Commission are thus reversed. Because the orders regarding intervention are reversed on that ground, the Court does not reach Chesapeake’s second argument: that the Commission’s determination Was unsupported by substantial evidence. FACTS AND PROCEDURAL HISTORY Chesapeake filed an application With the Commission in December 2015 for a general increase in its natural gas rates and other changes to its natural gas tariff.1 The application sought to expand Chesapeake’s natural gas offerings through new lR. at 2. Chesapeake Utilities Corporation v. DelaWare Public Service Commission C.A. No. Kl7A-01-001 WLW June 7, 2017 programs.2 A few months later, in February 2016, DAAEP filed a petition for leave to intervene in the rate docl