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Full opinion text

Mr. PRESIDING JUSTICE GREEN

delivered the opinion of the court:

On September 18, 1973, defendant Illinois Power Company (I.P.Co.) filed a petition with defendant Illinois Commerce Commission (Commission) seeking authorization to curtail or discontinue gas service to certain customers classified under I.P.Co. schedules as interruptible industrial customers. Other relief not here in point was also requested. Plaintiffs, the municipalities of Carlyle, Breese, Freeburg, Highland and Mascoutah, Illinois, were among the more than 100 customers of that class then being served by I.P.Co. After a hearing at which plaintiffs and defendant Wilson and Company appeared, the Commission entered an order August 14, 1974, denying the request of the petition but ordering LP.Co. to file certain new tariff sheets. These sheets were to create a classification of “limited firm service” to which the interruptible customers such as plaintiffs would be permitted to transfer under certain conditions. The sheets were also to set rates for the “limited firm” customers in much higher amounts than were being paid by the interruptible customers. Plaintiffs appealed to the Circuit Court of Sangamon County pursuant to section 68 of “An Act concerning public utilities” (Ill. Rev. Stat. 1973, ch. 111 2/3, par. 72). Upon affirmance by that court, plaintiffs have appealed to this court.

Customers receiving service from a utility under an “interruptible” classification do so under an arrangement whereby service to them may be cut off if the utility would be otherwise unable to serve its other customers. One purpose of the classification is to make use of the full capacity of the utility at times when demand is not at its peak. Because of the contingent nature of the service, rates are traditionally lower than those for other customers. (Produce Terminal Corp. v. Illinois Commerce Com. (1953), 414 Ill. 582, 112 N.E.2d 141.) Such was the arrangement between plaintiffs and LP.Co. here. The evidence at the Commission hearing indicated that I.P.Co. had seldom had to interrupt service in the past. The evidence did show, however, that I.P.Co. had over 9000 applicants for service many of whom sought to use the gas for residential space heating. LP.Co. sought to curtail or discontinue service to those in the interruptible class in order to give service to more residential customers.

The Commission recognized that public policy required that a high priority be given to use of gas for residential space heating purposes as an efficient use of limited supplies of the fuel and that LP.Co. had an “immediate, pressing problem” in meeting the needs of these potential residential customers. It also found, however, that hardship would occur to some of the interruptible industrial customers if their supplies were cut off because of the great cost to these customers of converting to other fuel. Rather than permitting direct curtailment or discontinuance of service to these customers, the Commission sought by its order to provide for a classification which would give these customers a more sure source of supply but at a price that would encourage those who could do so with the least hardship to convert to another fuel. To the extent that some did convert, capacity would become available for residential users. The Commission ordered that the tariff sheet provide that the limited firm service was to be open only to those in the interruptible class who chose to accept it within 20 days of the filing. The service was to be provided only for existing gas burning equipment. The rates were to be at 12