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ELECTRICPOWERASSICATIONX/XI   P @@ ADirectAppealfromtheChanceryCourtforMcNairyCounty  J @@No.7939TheHonorableDeweyC.Whitenton,Chancellor  4 @@*AV) ` dE<` A   @@TTNo.W200302699COAR3CVFiledNovember15,2004   AV) ` dE<` A      X%DXXX/  ThisisanappealfromthetrialcourtsgrantofaninjunctionagainstAppellanttoremove }  itselectricallinesandfacilitiesfromMcNairyCounty.ThetrialcourtfoundthatAppellantwasa f  nonconsumerownedelectricsystemand,assuch,subjecttoinjunctionunderT.C.A.6534103. O FindingthatAppellantis,infact,an electricandcommunityservicecorporation,weholdthat 8 AppellantisnotsubjecttoinjunctionunderT.C.A.6534103.Wereverseandremand.  !q #X/XXX%D##IXX/#X/XI Tenn.R.App.P.3;AppealasofRight;JudgmentoftheChanceryCourtReversedand C Remanded  -   #IX/#X/X.IW.FrankCrawford,P.J.,W.S.,deliveredtheopinionofthecourt,inwhichAlanE.Highers,  J.andDavidR.Farmer,J.,joined.  JamesE.Price,Jr.ofCorinth;TerryL.WoodofCorinthforAppellant,AlcornCountyElectric T PowerAssociation = TerryAbernathyofSelmerforAppelleePickwickElectricCooperative & v J.RichardLodge,Jr.,andRussellS.BaldwinofNashvilleforTennesseeElectricCooperative !_  AssociationasAmicusCuriae !H! a OPINION #IXX/#X/XI ## #IXX/> #X/XI  8%DXXdXXd8  AlcornCountyElectricPowerAssociation( ACE, Defendant,or Appellant)isa % % memberownednonprofitelectricservicecooperativeorganizedanddoingbusinessunderthelaws &!& oftheStateofMississippiforthepurposeofprovidingelectricservicestoitsmembersinAlcorn o'"' County,Mississippi,pursuanttoacertificateofauthorityfromtheMississippiPublicService X(#( Commission.PickwickElectricCooperative( PEC, Plaintiff,or Appellee)isamember A)$) ownednonprofitelectriccooperativeorganizedanddoingbusinessunderthelawsoftheStateof **z%* Tennesseeforthepurposeofprovidingelectricservicetoitsmemberswithinitsexclusive +c&+ geographicterritory,whichincludesMcNairyCounty,Tennessee.Inthefallof2002,ACE +L',  constructedathreephase,12,000voltelectriclineandrelatedelectricdistributionfacilities ,5(- (includinglightingandsecondaryfacilitiesforservingultimateconsumers)withinPECsterritory  inMcNairyCounty.     OnApril22,2003,PECfiledaComplaintintheChanceryCourtofMcNairyCountyagainst k ACEseekingamandatoryinjunctiontocompelACEtoremoveitspowerlinesanddistribution T facilitiesfromMcNairyCounty.ThesolegroundrelieduponbyPECinthecomplaintwasthatthe =  erectionandmaintenanceoftheselinesandfacilitiesviolatedT.C.A.6534103becauseACEwas & v allegedlya nonconsumerownedelectricsystemwithinthemeaningofthatstatute.OnMay5,  _ 2003,ACEfileditsAnswerdenyingthatitwasa nonconsumerownedelectricsystem.  H IncorporatedintoACEsAnswerwasaMotiontoDismissonthegroundsthattherestrictive  1  provisionsofT.C.A.6534103werenotapplicabletoACEbecauseACEwasan electricand    communityservicecorporation,asthattermisusedintheTennesseestatutes.     ThematterwasheardbythecourtsittingwithoutajuryonAugust25,2003.OnOctober   24,2003,thetrialcourtenteredits FinalDecreeandJudgment(the Judgment),which n  incorporatesthe TrialOpinionbyreference.Specifically,thetrialcourtheldthat:(1)ACEisa W   nonconsumerownedelectricsystemunderTennesseelawand,therefore,thatACEhasviolated @ T.C.A.6534103byconstructingandmaintainingitselectricaldistributionfacilitiesoutsideits )y geographicterritory;(2)thatACEsfacilitiesdirectlyencroachuponPECsexclusiveterritorial b rightsasprovidedbyTennesseelaw;(3)thatACEsfacilitieslimitorprecludePECsabilityto K expandortosafelymaintainitssystem;(4)thatACEsequipmentisplacedinviolationofthe 4 NationalElectricSafetyCode( NESC).    ACEappealsandraisesoneissueforreviewasstatedinitsbrief:WhetherACEisa non  consumerownedelectricsystemwithinthemeaningofSection6534103,TennesseeCode  Annotated.IfACEisnota nonconsumerownedelectricsystemasthattermisdefinedby q Tennesseelaw,thenSection6534103,TennesseeCodeAnnotated,isnotapplicabletoit;andthe Z trialcourterredinoverrulingitsmotiontodismiss. C   Thetrialcourtsinterpretationofthestatutoryschemeatissueinthiscaseisaquestionof e law.Assuch,ourreviewofthetrialcourtsorderis denovo upontherecordwithnopresumption N ofcorrectnessaccompanyingthetrialcourtsconclusionsoflaw. See Tenn.R.App.P.13(d);  8  Waldronv.Delffs ,988S.W.2d182,184(Tenn.Ct.App.1998); Simsv.Stewart ,973S.W.2d597, !"  599600(Tenn.Ct.App.1998). " !   T.C.A.6534103(1993),underwhichthetrialcourtgrantedPECsrequestforan $# injunction,reads,inpertinentpart,asfollows: w% $ 8  8`    6534103.Nonconsumerownedelectricsystem!Expansion I'"& limits.! Nononconsumerownedelectricsystemmayconstruct, 3(#' acquire,ormaintainfacilities,lines,poles,orotherequipmentused )o$( orusefulforthedistributionorsaleofelectricityoutsideitscurrent *X%)  geographicterritory,normayanynonconsumerownedelectric *A&* systemprovide,bysaleorotherwise,electricitytoanyparcelofland  locatedoutsideitscurrentgeographicterritory.` x` x  A nonconsumerownedelectricsystemisdefinedatT.C.A.6534102(4)(1993)asfollows: k 8  8`    Nonconsumerownedelectricsystemmeansanypublicelectric =  systemotherthanelectricandcommunityservicecooperativesand & v municipalelectricsystems.... _` x` x ACEarguesthatitisan electricandcommunityservicecooperativeand,therefore,nota non  1  consumerownedelectricsystem,whichissubjecttotherestrictionsofT.C.A.6534103.An     electricandcommunityservicecooperativeisdefinedatT.C.A.6525202(4)(Supp.2003)as   follows:   8  8`    Cooperativeor cooperativesmeansone(1)ormorenonprofit n  cooperativemembershipcorporationsheretoforeorhereafter W  organizedunderorotherwisesubjecttothispart,including @ corporationstransactingbusinessinTennesseepursuantto6525 )y 221underthispartorunderitspredecessor,theElectricCooperative b Law,hereinaftercalled foreigncorporations.K` x` x T.C.A.6525221(a)(1993)definesa foreigncorporationasfollows:  8  8`   Anycorporationorganizedonanonprofitoracooperativebasisfor  theprimarypurposeand/orforone(1)ormoresecondarypurposes  andoperatinginastateadjacenttothisstateshallbepermittedto q transactbusinessinthisstatewithoutcomplyingwithanystatuteof Z thisstatepertainingtothequalificationofforeigncorporationsforthe C transactionofbusinessinthisstate.,|` x` x Underthestatutoryschemeoutlinedabove,ifACEqualifiesasan electricandcommunityservice N cooperativeunderT.C.A.6525202(4),thenitisnota nonconsumerownedelectricsystem  7 subjecttoinjunctionunderT.C.A.6534103.Accordingtothestipulatedfacts,ACEisamember !   ownednonprofitcorporationorganizedfortheprimarypurposeofprovidingelectricitytoits " ! membersinMississippi,astateadjacenttoTennessee.Wefind,therefore,thatACEisan electric #" andcommunityservicecooperativeunderT.C.A.6525202(4),andcouldalsobedefinedasa $# foreigncorporationunderT.C.A.6825221(a).BecauseACEisnota nonconsumerowned t% $ electricsystem,wefindthatthetrialcourterredinenjoiningACEtoremoveitslinesandfacilities ]&!% underT.C.A.6534103. F'"&   AlthoughPECdoesnotallegeanygroundsotherthanthosefoundatT.C.A.6534103in )h$( itsComplaint,atthehearingonthismatter,PECprofferedthetestimonyofitsemployeeCarl *Q%) Dudley.Mr.DudleytestifiedthattheplacementofACEslinesandfacilitiesisinviolationofthe *:&* NESC,andthatACEsequipmentinterfereswithPECsabilitytoserviceand/orexpandtheir +#'+ equipmentlocatedinthearea.DespitethefactthatPECsComplaintwasnotamendedtoinclude  allegationsthatACEsequipmentwasplacedinviolationoftheNESCorthatithinderedPECs  abilitytoserviceitsownsystem,noobjectionwasmaderegardingthisevidence.Rule15.02ofthe  Tenn.R.Civ.P.reads,inrelevantpart,asfollows: k 8  8`   Whenissuesnotraisedbythepleadingsaretriedbyexpressor =  impliedconsentoftheparties,theyshallbetreatedinallrespectsas & v iftheyhadbeenraisedinthepleadings.Suchamendmentofthe  _ pleadingsasmaybenecessarytocausethemtoconformtothe  H evidenceandtoraisetheseissuesmaybemadeuponmotionofany  1  partyatanytime,evenafterjudgment;butfailuresotoamenddoes    notaffecttheresultofthetrialoftheseissues. ` x` x (Emphasisadded).     Consequently,thefactthatPECsComplaintdoesnotincludeanallegationthatthe W  placementofACEsequipmentisasafetyhazardorahinderancetoPECsownmaintenanceand/or @ expansioneffortsdoesnotinvalidatethetrialcourtsfindingonthematter. )y   Mr.Dudleystestimonyislargelyundisputed;however,therewasnotacomprehensive K inquirybelowastoACEsallegedviolationsofsafetystandards,orastotheextent,ifany,oftheir 4 interferencewithPECsequipment.    Fortheforegoingreasons,wereversethetrialcourtsJudgment.Weremandthecasefor  suchfurtherproceedingsasmaybenecessarytodeterminewhetherandtowhatextentACEslines  andfacilitiesareplacedinviolationoftheNESC,whetherandtowhatextentACEsequipment q hindersPECsabilitytoexpandand/ormaintainitsownequipmentand,ifanyviolationsexist,then Z todeterminethemeansbywhichthoseviolationsmayberemedied.Costsofthisappealare C assessedonehalftoAppellant,AlcornCountyElectricPowerAssociation,anditssurety,andone ,| halftotheAppellee,PickwickElectricCooperative.#IXX/ #X/XI e    `     h   __________________________________________ " !    `     h   W.FRANKCRAWFORD,PRESIDINGJUDGE,W.S.