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GRINDSTED PRODUCTS v. KAN. CITY POWER & LIGHT CO8/4/1995
Grindsted Products, Inc., (Grindsted) appeals the district court's dismissal of its claim for lack of subject matter jurisdiction. Grindsted argues that a claim for damages under K.S.A. 66-176 need not be first determined by the Kansas Corporation Commission (KCC). We affirm the district court's order dismissing Grindsted's action.
The facts are largely undisputed on appeal. Grindsted manufactures bulk food products. Kansas City Power & Light Company (KCP&L) provides electricity to Grindsted's manufacturing plant in Johnson County, Kansas. KCP&L charges Grindsted for service
pursuant to the general service-large (GL) tariff. The GL tariff has been approved by the KCC and is on file with the commission.
Effective July 1988, KCP&L created an Economic Development Rider (EDR) to provide incentive rates for eligible customers. The KCC approved the EDR. The stated purpose of the EDR was to encourage "industrial and commercial business development in Kansas. These activities will attract capital expenditures to the State, diversify the Company's customer base, create jobs and serve to improve the utilization efficiency of existing [KCP&L] facilities."
The EDR's discounted rates are only available in conjunction with government economic development programs where incentives have been offered to locate or expand facilities in the KCP&L service area. The EDR rates apply only to new customers or to existing customers who install separately metered facilities. The rates apply only to those facilities not selling or providing goods and/or services to the general public.
Grindsted began planning an expansion of its existing manufacturing site. Grindsted, through its agents, spoke with KCP&L about the electric service and rates to be charged at the expansion facility. Grindsted completed the separately metered expansion facility in May 1990. Electrical service to the expansion facility was billed at the GL rate with no EDR discount.
Grindsted became aware of the EDR discount in 1993. Grindsted asked KCP&L to bill the facility at the discounted rate because it was eligible under the terms of the EDR. KCP&L stated that the incentives were designed to encourage businesses to build or expand in the KCP&L service area "where the customer decision to build, relocate or expand has not been made." KCP&L noted that Grindsted had decided to expand its facility prior to learning about the EDR incentives; thus, the provisions of the EDR did not apply.
Grindsted filed suit in district court, alleging that KCP&L misconstrued the language of the EDR to Grindsted's detriment. Grindsted alleged that the EDR applied to it and KCP&L currently charged rates for service in excess of those authorized by law. Grindsted sought refund of the excess charges. Further, Grindsted
sought treble damages, attorney fees, and costs pursuant to K.S.A. 66-176.
Grindsted simultaneously filed a complaint with the KCC alleging that KCP&L had discriminated against it in failing to inform Grindsted of the provisions of the EDR, KCP&L had incorrectly interpreted the EDR, and KCP&L had as a result overcharged Grindsted for service. Grindsted asked the KCC to enter an order determining that KCP&L improperly failed to apply the EDR tariff and requiring KCP&L to serve Grindsted under the EDR tariff.
KCP&L filed a motion to dismiss for lack of subject matter jurisdiction in the district court. The district court granted KCC's motion to intervene for the limited purpose of addressing the jurisdiction issue. The KCC also filed a motion to dismiss for lack of s
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