County of Orange v. Public Serv. Comm., 39 N.Y.2d 764 (1976)

The Public Service Commission’s (PSC) determination regarding the necessity and construction of power lines will be upheld if supported by substantial evidence and not arbitrary, capricious, or an abuse of discretion; courts should defer to the PSC’s expertise in evaluating environmental impact and economic considerations.

Summary

This case concerns the judicial review of Public Service Commission (PSC) orders granting Consolidated Edison a certificate of environmental compatibility and need for a 37-mile high-voltage electric power transmission line. The Court of Appeals affirmed the PSC’s decision, holding that there was substantial evidence to support the PSC’s finding of need for the power line. The Court further held that the PSC appropriately considered alternative routes and that its decision regarding overhead versus underground construction was reasonable. The Court emphasized the limited scope of judicial review in such matters, stating that courts should not intervene unless the PSC’s determinations lack substantial evidence or are arbitrary, capricious, or an abuse of discretion.

Facts

Consolidated Edison proposed constructing a southern tier transmission facility with north-south and east-west segments in 1966. Extensive hearings were held, considering various alternative routes. The PSC approved specific routes for both segments. Following judicial review of the north-south segment, reopened hearings were held regarding the east-west route. The PSC ultimately certified an east-west route proposed by its staff. The Appellate Division found substantial evidence supported the need for the east-west leg and the PSC’s authority to certify a staff-proposed route but directed underground construction through a proposed park, differing from the PSC’s approval of overhead construction parallel to an existing line.

Procedural History

The Public Service Commission (PSC) initially approved both north-south and east-west segments of a power line project. The north-south segment approval was upheld by the Appellate Division and the Court of Appeals (County of Orange v Public Serv. Comm., 39 AD2d 311, affd 31 NY2d 843). After reopened hearings on the east-west segment, the Appellate Division upheld the PSC’s finding of need and authority to certify a staff-proposed route but mandated underground construction in a specific area. This decision was appealed to the Court of Appeals.

Issue(s)

1. Whether the Public Service Commission’s finding of need for the east-west segment of the power line was supported by substantial evidence?
2. Whether the Public Service Commission has the authority to certify a route for a power line proposed by its own staff?
3. Whether the Public Service Commission gave appropriate consideration to alternative routes for the east-west segment?
4. Whether the Appellate Division erred in directing underground construction of a portion of the proposed route, substituting its judgment for that of the Commission?

Holding

1. Yes, because the record contains substantial evidence to support the commission’s finding of need for the east-west segment.
2. Yes, because the commission has the authority to certify a route first proposed by its own staff.
3. Yes, because the commission gave appropriate consideration to alternative routes proposed for the east-west segment and reasonably concluded that the route certified