MCI Telecommunications Corp. v. Public Utilities Commission

513 N.E.2d 337, 32 Ohio St. 3d 306, 1987 Ohio LEXIS 387
Ohio Supreme Court·Decided September 9, 1987·No. No. 86-861·Published·Cited by 35 cases

Opinions

Per Curiam.

The scope of our review of PUCO orders is set forth in R.C. 4903.13, which states in pertinent part:

“A final order made by the public utilities commission shall be reversed, vacated, or modified by the supreme court on appeal, if, upon consideration of the record, such court is of the opinion that such order was unlawful or unreasonable. * * *”

Under the “unlawful or unreasonable” standard specified in R.C. 4903.13, we will not reverse or modify a PUCO decision as to questions of fact where the record contains sufficient probative evidence to show that the PUCO’s determination is not against the manifest weight of the evidence and is not so clearly unsupported by the record as to show misapprehension, mistake or willful disregard of duty. Dayton Power & Light Co. v. Pub. Util. Comm. (1983), 4 Ohio St. 3d 91, 4 OBR 241, 447 N.E. 2d 733; Columbus v. Pub. Util. Comm. (1979), 58 Ohio St. 2d 103, 12 O.O. 3d 112, 388 N.E. 2d 1237. As to questions of law, however, this court has complete, independent power of review. Legal issues are accordingly subjected to more intensive examination than are factual questions. Consumers’ Counsel v. Pub. Util. Comm. (1979), 58 Ohio St. 2d 108, 12 O.O. 3d 115, 388 N.E. 2d 1370; Consumers’ Counsel v. Pub. Util. Comm. (1983), 4 Ohio St. 3d 111, 4 OBR 358, 447 N.E. 2d 749.

A

MCI first contends that the PUCO’s February 11, 1986 order was unreasonable and unlawful because the PUCO failed to give notice of its intended distribution of the surplus funds and failed to conduct a hearing prior to issuing the order, in violation of the due process requirements of the Ohio and United States Constitutions. MCI argues that it was entitled to such prior notice and a hearing because, as a customer purchasing access service from local exchange companies, it had a substantive right in and to the pool surplus.

We have repeatedly held that a utility ratepayer has no constitutional right to notice and hearing in rate-related matters if no statutory right to a hearing exists. Armco, Inc. v. Pub. Util. Comm. (1982), 69 Ohio St. 2d 401, 23 O.O. 3d 361, 433 N.E. 2d 923; Cleveland v. Pub. Util. Comm. (1981), 67 Ohio St. 2d 446, 453, 21 O.O. 3d 279, 283, 424 N.E. 2d 561, 566; Committee Against MRT v. Pub. Util. Comm. (1977), 52 Ohio St. 2d 231, 239, 6 O.O. 3d 475, 480, 371 N.E. 2d 547, 552 (P. Brown, J., dissenting). MCI has not cited any statute in support of its contention that it was entitled to a hearing. Accordingly, MCI’s first contention is not well-taken. In any event, the record in this case shows that MCI was not prejudiced by the PUCO’s failure to hold a hearing. The PUCO indicated its intent to use any pool surplus to reduce local exchange company message toll service rates as early as the May 21,1984 order. MCI was a party to the original proceedings in PUCO No. 83-464-TP-COI, but it did [311] not file an application for rehearing of the May 21,1984 order with regard to the proposed disposition of the pool surplus. MCI had ample opportunities to advocate its position regarding its entitlement to surplus funds by submitting comments and replies to the submissions of the parties.

B

MCI’s second contention is that the PUCO’s order failed to comply with the requirements of R.C. 4903.09.

R.C. 4903.09 states that:

“In all contested cases heard by the public utilities commission, a complete record of all of the proceedings shall be made, including a transcript of all testimony and of all exhibits, and the commission shall file, with the records of such cases, findings of fact and written opinions setting forth the reasons prompting the decisions arrived at, based upon said findings of fact. ” (Emphasis added.) ■

MCI argues that the February 11, 1986 order fails to comply with the statute in two regards. First, MCI contends that the PUCO’s February 11, 1986 order failed to contain the required findings of fact and reasons prompting the PUCO’s decisions. Second, MCI contends that the record in PUCO No. 83-464-TP-COI does not support the PUCO’s decision. In effect, MCI argues that the PUCO’s decision is against the manifest weight of the evidence and clearly unsupported by the record.

The purpose of R.C. 4903.09 (formerly G.C. 614-46a), as stated by this court in Commercial Motor Freight, Inc. v. Pub. Util. Comm. (1951), 156 Ohio St. 360, 363-364, 46 O.O. 210, 211-212, 102 N.E. 2d 842, 844-845, is:

“* * * to enable this court to review the action of the commission without reading the voluminous records in Public Utilities Commission cases. Where the commission states the facts found upon which it bases its decision, this court can usually readily determine, as it is required to do by Section 544, General Code, whether the order of the commission is ‘unlawful or unreasonable.’ A review of the essential facts so found can also be made with the help of record references supplied by opposing counsel in their briefs. The General Assembly never intended this court to perform the same functions and duties as the Public Utilities Commission but it did intend that this court should determine whether the facts found by the commission lawfully and reasonably justified the conclusions reached by the commission in its order and whether the evidence presented to the commission as found in the record supported the essential findings of fact so made by the commission. ” (Emphasis added.)

Taken literally, R.C. 4903.09 requires PUCO orders to contain specific findings of fact and conclusions of law. However, the requirements of R.C. 4903.09 have been satisfied by orders which incorporate or adopt attorney-examiner reports or commission secretary reports which contain such findings or conclusions. Railway Express Agency, Inc. v. Pub. Util. Comm. (1962), 173 Ohio St. 69, 18 O.O. 2d 287, 180 N.E. 2d 10; New York Central Rd. Co. v. Pub. Util Comm. (1955), 164 Ohio St. 289, 58 O.O. 68, 130 N.E. 2d 365; Buckeye Lake Chamber of Commerce v. Pub. Util. Comm. (1954), 161 Ohio St. 306, 53 O.O. 180, 119 N.E. 2d 51. Furthermore, PUCO orders which incorporate testimony from the proceeding or incorporate the entire record from a related investigative PUCO case have been upheld as reasonable and lawful. County Commissioners’ Assn. v. Public Util. Comm. (1980), 63 Ohio St. 2d 243, 17 O.O. 3d 150, 407 N.E. 2d 534; General Motors Corp. v. Pub. Util. Comm. [312] (1976), 47 Ohio St. 2d 58, 1 O.O. 3d 35, 351 N.E. 2d 183. In fact, where there was enough evidence and discussion in an order to enable the PUCO’s reasoning to be readily discerned, this court has found substantial compliance with R.C. 4903.09, and held that the lack of specific findings may be simply a technical defect which would not result in the invalidation of the order. Consumers’ Counsel v. Pub. Util. Comm., supra (58 Ohio St. 2d 108); Braddock Motor Freight, Inc. v. Pub. Util. Comm. (1963), 174 Ohio St. 203, 22 O.O. 2d 173, 188 N.E. 2d 162.

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MCI Telecommunications Corp. v. Public Utilities Commission, 513 N.E.2d 337, 32 Ohio St. 3d 306, 1987 Ohio LEXIS 387 (Ohio 1987).

513 N.E.2d 337 (MCI Telecommunications Corp. v. Public Utilities Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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