Board of Supervisors v. Chesapeake & Potomac Telephone Co.

182 S.E.2d 30, 212 Va. 57, 1971 Va. LEXIS 294
CourtSupreme Court of Virginia
DecidedJune 14, 1971
DocketRecord No. 7504
StatusPublished
Cited by4 cases

This text of 182 S.E.2d 30 (Board of Supervisors v. Chesapeake & Potomac Telephone Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Supervisors v. Chesapeake & Potomac Telephone Co., 182 S.E.2d 30, 212 Va. 57, 1971 Va. LEXIS 294 (Va. 1971).

Opinion

Gordon, J.,

delivered the opinion of the court.

On December 3, 1969, The Chesapeake and Potomac Telephone Company of Virginia filed with the State Corporation Commission new rate schedules rounding intrastate toll rates to the next higher instead of the nearer cent, changing the Company’s installation and rearrangement charge and providing a charge for non-published or non-listed stations. The Commission fixed December 22, 1969 in its courtroom as the time and place for a public hearing and directed that notice of the hearing be published in newspapers across the State.

Before the hearing, the Board of Supervisors of Fairfax County filed a petition asking the Commission to suspend enforcement of the revised rates for at least sixty days. The County Board also asked the Commission to postpone the hearing and to require the Company to file its testimony and exhibits thirty days before the postponed hearing date. When the Commission convened on December 22, 1969, counsel for the County Board moved the Commission to rule on the petition, but the Commission announced that it would defer its ruling until the conclusion of the hearing.

Counsel for the Company made an opening statement describing the proposed revised rates, after which the Commission heard statements from two individuals.1 Counsel for the County Board then renewed the motion previously made, stating that he would withhold any presentation until the Commission had ruled on the motion. Whereupon, the Chairman of the Commission read the Commission’s decision from which this appeal was prosecuted:

“The tariff filing proposes to increase toll charges by rounding out the charge per minute over three minutes to the next higher cent instead of the nearest cent. This increase will not be burdensome to the average telephone user.
“In addition, the filing proposes to increase the charges for the installation of new telephones and the moving of existing tele[59]*59phones to new locations. A nonrecurring charge is proposed for future but not for present nonpublished telephone numbers. This added charge will tend to discourage the widespread use of unlisted numbers.
“Because of the action of the Federal Communications Commission in reducing interstate toll charges, the Bell System is engaged in seeking increases in local exchange rates throughout the country to make up for that loss of revenue. This Commission hopes to prevent any increase in local exchange rates in Virginia.
“The present filing is accepted in order to make it harder for the telephone company to justify any increase in local exchange rates. The local exchange rates are the ones that affect the vast majority of the consumers.”

On March 18, 1970, after this appeal was noted, the Commission rendered an opinion respecting its decision on December 22, 1969. Under the section headed “The Evidence Considered”, the opinion referred to three matters.

First, the opinion pointed out that “[w]ith the mass of detailed information gathered by its large and expert staff, the Commission keeps in touch with the utilities”. None of this information was brought forth at the public hearing on December 22, 1969 or incorporated in the opinion of March 18, 1970 or otherwise made part of the record.

Secondly, the opinion took judicial notice of certain facts:

“[T]he Commission is familiar with matters of common knowledge, such as that interest rates are high, that the value of the dollar is being eroded by inflation, and that construction costs are soaring. It is a matter of common knowledge that the cost of rendering reasonably good telephone service is going up. And the accounting staff has estimated that if the increased charges that became effective on January 5th [1970] produce $2,900,000 a year, the company’s rate of return will increase from about 7% to about 7 lA %•”

Thirdly, the opinion disclosed what the Commission had done after it learned about the November 5, 1969 “agreement” between the Federal Communications Commission and the American Telephone and Telegraph Company “to decrease the nationwide interstate toll charges”:

[60]*60“Faced- with the unfavorable situation brought about by the conduct of the Federal Commission, the S. C. C. [State Corporation Commission] called in the representatives of the local telephone company [The Chesapeake and Potomac Telephone Company of Virginia] and told them that this Commission intended to put off as long as possible any increases in local exchange rates, and that it would consider only schedules of charges that did not increase local exchange rates. The Commission allowed the filing in this case to become automatically effective because it is clearly to the advantage of the local exchange customers.”

Counsel for the County Board attacks the December 22, 1969 decision on the ground that the Commission approved the new rates proposed by the Company without hearing evidence to support its decision and without affording the Board an opportunity to be heard. The Company contends, however, that the Commission did not approve the proposed rates. Rather, the Company contends that the Commission exercised its discretion not to suspend the enforcement of the proposed rates, permitting them to become effective as “company-made rates” under Code § 56-240.

Code § 56-237 provides that no change shall be made in utility rates “except after thirty days’ notice to the Commission”. Code § 56-238 provides that the Commission, upon complaint or on its own motion, may suspend the enforcement of any proposed rates pending its investigation of their reasonableness. Code § 56-240 provides:

. “Unless the Commission so suspends such schedule of rates, tolls [and] charges . . ., or changes thereof, the same shall go into effect as originally filed by the public utility, upon the date specified in the schedule, subject, however, to the power of the Commission, upon investigation thereafter, to fix and order substituted therefor such rate or rates, tolls [and] charges ... as shall be just and reasonable . . . .”

Va. Code Ann. § 56-240 (1969).

But Code § 56-478 provides:

“The State Corporation Commission shall supervise, regulate and control all telephone companies doing business in this State in all matters relating to the performance of their public duties and their charges therefor, . . . and to that end the Commission shall, [61]*61from time to time, prescribe and enforce against sueh companies, in the manner hereinafter directed, such rates- [and] charges . . . as may be reasonable and just. 'And the Commission may, from time to time, alter or amend any such rates [and] charges . . . . All rates [and] charges . . . adopted or acted upon by any such company in conflict with those prescribed by the Commission within the scope of its authority shall be unlawful and void.”

Va. Code Ann. § 56-478 (1969).

We agree with the Company’s contention that Code § 56-240 sanctions “company-made rates” because it provides that rate schedules filed by a public utility become effective unless the Commission acts to suspend them. Conversely, Code § 56-478 sanctions only “commission-made rates” because it provides that only those rates prescribed by the Commission become effective.

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182 S.E.2d 30, 212 Va. 57, 1971 Va. LEXIS 294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-supervisors-v-chesapeake-potomac-telephone-co-va-1971.