Pacific Gas & Electric Co. v. Universal Electric & Gas Co.

CASHIN, J.

An appeal from a judgment entered against the defendant in an action on a contract for the sale of electrical energy.

The contract, which was entered into between Sierra and San Francisco Power Company (hereinafter referred to as the power company) and the defendant on July 9, 1915, provided for the sale by the power company and the purchase by the defendant for a period of eight years of all the electrical energy required by the latter in the regular course, of its business in excess of that generated by its own plant. The rates agreed to be paid were fixed in

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accordance with a sliding scale based upon the amount of energy used, and it was further provided that the contract should bind the successors in interest of both parties. The complaint alleged that between the months of January, 1920, and April, 1922, inclusive, energy was furnished, for which under the contract defendant agreed to pay the sum of $812,613.97, and of which $774,598.36 had been paid. The prayer was for the difference of $38,015.61, and for which, with interest, the judgment was entered. The contract also provided that for the energy delivered during any month payment should be made within thirty days thereafter, and in case the defendant should dispute any bill rendered within the period fixed for payment then it should pay the amount which it admitted to be due, and forthwith offer to submit to arbitration in the manner provided the question respecting the balance unpaid.

When the contract was entered into the Railroad Commission of the state of California had no jurisdiction over the rates, charges, and contracts of the parties for the reason that they were not operating within a municipality which had surrendered its power of control in such matters. After the amendment of section 23 of article XII of the constitution in 1914 the present Public Utilities Act was adopted (Stats. 1915, p. 115), and took effect on August 8, 1915. By this legislation the Commission acquired jurisdiction over the parties respecting their contracts and rates (sec. 14b of the act), and in compliance with an order of the Commission the power company on October 6, 1915, filed a list of deviations from its regularly filed electric rates then in force. Reference therein was made to the above contract, but whether the list set forth the-rate agreed to be paid thereunder cannot now be ascertained as the list has been lost from the files of the Commission. Subsequently the Commission requested that a copy of the contract be filed, and this was done on February 15, 1916. Thereafter on March 26, 1919, the power company and Pacific Gas and Electric Company, plaintiff and respondent here, filed with the Commission their joint application for an order authorizing the power company to execute a lease of all its generating and distributing plants and properties to the plaintiff, this being followed by a supplemental application referring to the proposed lease, the terms of which were contained in