Attorney General v. Public Service Commission

455 N.W.2d 724, 183 Mich. App. 692
CourtMichigan Court of Appeals
DecidedMay 8, 1990
DocketDocket 113670
StatusPublished
Cited by2 cases

This text of 455 N.W.2d 724 (Attorney General v. Public Service Commission) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attorney General v. Public Service Commission, 455 N.W.2d 724, 183 Mich. App. 692 (Mich. Ct. App. 1990).

Opinion

Per Curiam.

In this matter of first impression the Attorney General appeals as of right from a November 10, 1988, order of the Michigan Public Service Commission approving an application of appellee MCI Telecommunications Corporation for flexible rate authority pursuant to recently enacted 1986 PA 305, MCL 484.103a-484.103f; MSA 22.1443(l)-22.1443(6); 1 Specifically, the psc ordered as follows:

A. The application of MCI Telecommunications Corporation for regulatory flexibility is approved.
*695 B. MCI Telecommunications Corporation may decrease prices for existing services upon one day’s notification to the Commission.
C. MCI Telecommunications Corporation may increase prices for existing services upon 14 to 30 days’ notice to its customers and to the Commission.
D. MCI Telecommunications Corporation shall continue to be subject to the jurisdiction of the Commission and shall continue to geographically average its rates.
E. MCI Telecommunications Corporation shall, within 30 days, submit tariff sheets that properly reflect this order.
The Commission specifically reserves jurisdiction of the matters herein contained and the authority to issue such further order or orders as the facts and circumstances may require.

We affirm.

Mci is a telecommunications company authorized to provide interexchange telecommunications services throughout the state. On September 8, 1988, pursuant to Act 305, mci filed an application for flexible regulation. Relying on MCL 484.103b; MSA 22.1443(2), mci asked that it be permitted to change its rates for existing telecommunications services without individual approval and review by the psc. Under flexible regulation, a price increase would become effective only after mci notified its customers of the increase in rates, either fourteen days after notice by direct mail or by publication in a newspaper or thirty days after notice by insert included with the customer’s bill. A price decrease would become effective upon notice to the psc. In support of its request, mci referred to the psc’s December, 1987, Report to the Michigan Legislature on the Status of Telecommunications Competition in Michigan, which disclosed that over forty companies purchased switched access *696 services from Michigan Bell Telephone Company in order to offer intraLATA (Local Access Transport Area) or interLATA toll service in Michigan, and argued that, due to the high degree of competition in Michigan, it would be unable to engage in predatory or discriminatory pricing.

On September 30, 1988, the psc provided mci with a Notice and Opportunity for Comment and directed mci to publish the same on October 11, 1988, in The Detroit News, Lansing State Journal, The Grand Rapids Press and The Mining Journal.

On October 26, 1988, AT&T Communications of Michigan, Inc., filed its comments in support of mci’s request and agreed that, in view of the high competition in the marketplace, the public would be adequately protected if the application was granted.

On the same date, the psc staff filed comments supporting mci’s proposal and noting that in an earlier case involving U S Sprint the psc had found the market effectively competitive.

Also, on October 26, 1988, the Attorney General filed comments opposing the request. According to the Attorney General, the telecommunications market is not truly competitive and mci had not demonstrated to the contrary. The Attorney General further argued that mci had not shown that it was similarly situated to U S Sprint, the telecommunications company to which the psc had previously granted flexible regulation. Also, mci had failed to provide evidence concerning the scope and nature of the public interest in the long-distance market. The Attorney General further objected on grounds that mci’s application basically sought deregulation, thus requiring a contested case hearing under Act 305, § 3b(2), that the application did not provide customers adequate time to decide whether to continue with mci should mci *697 seek a rate increase and that, if the application was granted, mci would have unlimited freedom to increase long-distance rates without any degree of scrutiny by the psc.

On November 8, 1988, only thirteen days following the deadline for filing comments, mci filed affidavits of publication of notice in The Grand Rapids Press, Lansing State Journal, and The Mining Journal An affidavit of publication of notice in The Detroit News on October 11, 1988, was not filed until March 23,1989.

On November 10, 1988, the psc issued its order approving mci’s application for flexible regulation. The order was signed by Chairperson William Long and Commissioner Steven Fetter, with Commissioner Ronald Russell abstaining.

On December 9, 1988, the Attorney General filed a timely claim of appeal raising five grounds for reversal. We find that the grounds raised by the Attorney General are without merit and affirm the order granting flexible regulation.

i

WAS THE PUBLIC NOTICE ISSUED BY MCI DEFECTIVE BECAUSE THE NOTICE DID NOT INFORM THE PUBLIC OF THE EXISTENCE OF THE SUPPLEMENTAL APPENDIX AND DID NOT INFORM THE PUBLIC OF ITS RIGHT TO REVIEW THE SUPPLEMENTAL APPENDIX?

Mci filed a supplemental appendix to its application on September 30, 1988, a date some three weeks after the filing of its application. The Attorney General claims that his office did not know of the appendix until it received the psc’s final order which made reference to the appendix in its opening paragraph. Moreover, the Attorney General claims that mci failed to provide notice to the public of the existence of the appendix.

*698 Act 305, §3b(l), provides that a final order of flexible regulation may not be issued until notice and an opportunity to comment is provided. However, the precise wording of the notice is not set forth in the act. Under current law, the requirements of procedural due process are satisfied where notice is given in such a manner as to reasonably convey the required information. Mullane v Central Hanover Bank & Trust Co, 339 US 306, 314; 70 S Ct 652; 94 L Ed 865 (1950); Trussell v Decker, 147 Mich App 312, 323-325; 382 NW2d 778 (1985).

We find the notice sufficient. Act 305 provides that notice to the public and an opportunity to comment shall be given "in a manner prescribed by the commission.” MCL 484.103b(l); MSA 22.1443(2X1). Publication of the Notice and Opportunity for Comment was made in compliance with the psc’s directive and conveyed adequate information for any interested party. Nothing in the statute or the directive required mention of or reference to a supplemental appendix. The appendix only amplified the basic facts set forth in the application itself.

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Bluebook (online)
455 N.W.2d 724, 183 Mich. App. 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attorney-general-v-public-service-commission-michctapp-1990.