55 N.Y.2d 196 (1982)
A parochial school that teaches both secular and religious subjects is considered “exclusively religious” under New York Public Service Law § 76, entitling it to the lower domestic utility rate.
Summary
Rochester Christian Church, Inc. challenged the Public Service Commission’s (PSC) determination that parochial schools were not operated “exclusively” for religious purposes and thus ineligible for the lower “domestic consumer” utility rate under Public Service Law § 76. The church argued its schools, teaching both secular and religious subjects, were integral to its religious mission. The Court of Appeals reversed the Appellate Division, holding that the parochial schools were primarily religious and therefore entitled to the lower utility rate, emphasizing that the religious objective pervades all subjects taught.
Facts
Several churches in New York, organized under the Religious Corporation Law, operated parochial schools. These schools provided instruction in both religious tenets and state-mandated secular subjects for elementary and high school students. The schools were located on church property and the classrooms were used for both types of instruction. Prior to 1979, Rochester Gas and Electric Corporation billed the combined church and school operations at the lower domestic rate. In 1979, the utility company informed the churches that it would apply the higher general service rate to the schools, arguing that teaching secular subjects was not exclusively religious. The utility proposed separate wiring for the church and school to maintain the domestic rate for the church facilities only.
Procedural History
The churches filed a complaint with the Public Service Commission, which upheld the utility’s decision. The Supreme Court annulled the PSC’s determination, finding it unreasonable to distinguish between parochial and secular studies within a religious structure. The Appellate Division reversed, reinstating the PSC’s decision. The churches then appealed to the New York Court of Appeals.
Issue(s)
Whether a parochial school, teaching both secular and religious subjects, is considered an organization utilizing utility service “exclusively in connection with such religious purposes” under Public Service Law § 76, thus qualifying for the lower domestic utility rate.
Holding
Yes, because the teaching of religious beliefs is the paramount objective of parochial schools, pervading all subjects, whether secular or religious, thus making them “exclusively religious” within the meaning of Public Service Law § 76.
Court’s Reasoning
The Court of Appeals considered the statute’s purpose of providing religious institutions with a more favorable utility rate, noting that this aligns with other statutes offering special protections to religious organizations. The court referenced the Real Property Tax Law § 421, which provides tax exemptions for property used “exclusively for religious purposes”, demonstrating a legislative intent to use similar language consistently. The court stated, “Religious activities are not confined to a church or house of worship. Traditionally churches and religious organizations engage in a wide variety of activities which may be seen to be ‘exclusively religious’ when they are reasonably incidental to the religious goal.” Citing past cases such as People ex rel. Watchtower Bible & Tract Soc. v Haring, the court highlighted that activities like farming to feed members could qualify as exclusively religious. The court distinguished nonreligious use of religious facilities (e.g., renting to third parties) from the integration of secular subjects within a religious context. The court emphasized the paramount objective of parochial schools is the propagation of religious faith, quoting NLRB v Catholic Bishop of Chicago. Ultimately, the court found that parochial schools are primarily religious, entitling them to the domestic utility rate.