Citizens Coop Gin v. General Tel. Co
In Citizens Coop Gin v. General Tel. Co., 728 S.W.2d 903 (Tex. App.--Austin 1987, no writ), Citizens Coop Gin (the "Gin") attempted to obtain new telephone service from South Plains Telephone Cooperative ("Telephone Coop") rather than obtain the service from its existing carrier, General Telephone Company ("General Telephone"). Id. at 904.
To obtain the service, the Gin installed telephone distribution lines in Telephone Coop's service area that would connect the Gin to the Coop's distribution network. Id.
After learning about this, General Telephone asked the Commission to issue a cease-and-desist order on the ground that Telephone Coop "was providing service beyond its certificated area." Id. at 905.
The Commission denied the request. Id.
On appeal, the Court concluded that the Commission erred by allowing Telephone Coop to provide service to the Gin because the statute in effect at that time, like subsection 37.051(b), required that a utility seeking to provide service to an area that has been certificated to another utility must first obtain its own certificate stating "the area in which the consuming facility is located." Id. at 906 .