New England Telephone & Telegraph Co. v. Department of Public utilities

379 N.E.2d 574, 376 Mass. 28, 1978 Mass. LEXIS 1093
CourtMassachusetts Supreme Judicial Court
DecidedJuly 18, 1978
StatusPublished
Cited by1 cases

This text of 379 N.E.2d 574 (New England Telephone & Telegraph Co. v. Department of Public utilities) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Telephone & Telegraph Co. v. Department of Public utilities, 379 N.E.2d 574, 376 Mass. 28, 1978 Mass. LEXIS 1093 (Mass. 1978).

Opinion

Kaplan, J.

New England Telephone and Telegraph Company appeals pursuant to G. L. c. 25, § 5, from a decision of the Department of Public Utilities disallowing certain modifications of tariff proposed by the company. Upon agreement of the parties, a single justice of this [29]*29court reserved and reported the matter to the full court.

We turn to the facts as far as necessary. On April 14, 1976, the company filed with the department certain revisions of the part of its tariff entitled "Announcement Services” (MDPU No. 10). The effect of the revisions would be to modify the terms of an existing service called "Automatic Announcement Service” (AAS) and to introduce a variant service to be called "Public Announcement Service” (PAS).

Briefly, a subscriber to AAS under the existing tariff obtained a rather simple, light duty system by which persons calling the subscriber’s number were enabled to hear announcements regarding such things as road conditions or stock market quotations which would be accompanied by the subscriber’s advertising message. Rates for AAS comprised monthly charges for announcement equipment and a flat monthly rate for each line connecting the equipment to the telephone network. The company proposed by the April filing to substitute a minimum service period of six months for the existing three-month minimum in order to discourage demands for installation of the equipment for short intervals, and it proposed, further, to discontinue AAS when the equipment on hand was exhausted. PAS, as described in the filing, would be a light through heavy duty system that could handle without difficulty rapidly changing announcements such as time or time-and-temperature, and would offer a number of sophisticated features including "synchronous entry” (the caller, no matter when he calls, hears the beginning of the announcement as he comes on the line) and "traffic load protection” (there is automatic shortening of the announcement — information and advertising — when the number of calls at a particular time is so large as to crowd the lines). Rates proposed for PAS would consist of a nonrecurring charge for installation of service, monthly rates varying with the kind of announcement and type of duty, and a termination charge if the subscriber terminated service before expiration of [30]*30the minimum period applicable to the particular service. As to the relation of AAS (while it continued to be provided) to PAS, it appeared1 2that a customer could seléct either, if his estimated requirements were within twenty lines, he confined his announcements to certain types, and did not choose to avail himself of any of the sophisticated features; otherwise he would have to subscribe to PAS.

The proposed changes of tariff were stated to go into effect in a month’s time, on May 14,1976,2 but on May 13 the department inaugurated DPU Docket No. 18713, entitled "Investigation by the Department on its own motion as to the propriety of the rates and charges set forth in the following: MDPU No. 10 ... filed with the Department ..., ” and at the same time suspended the operation of the proposed rates and charges until September 14, 1976. Subsequently, by further orders, the department continued the suspension for the maximum period of ten months allowed under G. L. c. 159, § 20, that is, until March 14, 1977.

In June, 1976, the company filed its prepared testimony and exhibits to support its proposals, and in February, 1977, it filed responses to requests for information addressed to it by the department in January. On February 18 and 25, 1977, hearings were held in DPU 18713 presided over by a hearing officer with a departmental telecommunications specialist questioning rather minutely the witnesses offered on the part of the company. Further requests for information were made and answers filed. On March 14 the department rendered a decision concluding thus: "Ordered: That MDPU No. 10 of the Company filed on April 14, 1976 be and hereby is disallowed.” The company moved for reconsideration which [31]*31was denied on April 29, 1977, "without prejudice to the filing of a new tariff supported by any evidence available to the Company.”

The department’s decision expressed the concern that the rates should be based on "fully allocated costs,” and, characterizing the services involved as noncompetitive or "monopolistic,” insisted that the rates should be reasonably, not excessively, compensatory. Analyzing the facts adduced in the proceeding, the department sought to show that the company’s proposals did not satisfy the criteria mentioned.

In its petition of appeal the company alleged as grounds that (1) the department’s decision was not supported by substantial evidence; (2) under the controlling statutes the company’s proposed tariffs must go into effect unless the department should find them unreasonable and unlawful and itself determine and fix lawful rates, which the department had not done; (3) the company had been deprived of significant procedural rights in the course of the proceedings.

The company has not briefed the first point about a claimed lack of substantial evidence to support the department’s decision, and it is taken to have abandoned this contention.

Nevertheless, under the second point, the company argues that the proposed tariffs must go into effect because the department could not validly disapprove them without coming forward and establishing rates which it considered satisfactory (but which would, of course, be subject to company appeal). The contention turns on an interpretation of §§ 14 and 20 of G. L. c. 159, and we set out in an appendix the first paragraph of § 14 as it has long stood, and the whole of § 20 showing by conventional markings how it appeared before and after an amendment of 1973 (St. 1973, c. 816, § 1).

The line between the two sections is not perfectly clear and. for some purposes, no doubt, it is a matter of little practical importance that a clear line should be main[32]*32tained.3 We think, however, that § 20 before the 1973 amendment described a procedure directed to modifications proposed by a company of its existing tariff, while all along § 14 has set out a procedure by which the department could put in question a company’s existing tariff. The particular object of the 1973 amendment of § 20 was expressed in the title of the amendatory act, "An Act requiring the department of public utilities to notify the attorney general and to conduct a public hearing before making certain rate schedule changes” — referring to general increases of rates by telephone companies. But, in rearranging § 20 and distinguishing between telephone companies and other carriers, the amendment broke in on the first sentence of the section which had been indicative of its general theme. The result on a strict, literal reading would be to raise a question whether § 20 as amended speaks any longer to a proposed change of tariff by a telephone company which does not amount to a general increase of rates.

The company on the present appeal argues that the proposal to change the AAS tariff may fall to § 20 as a modification of an existing tariff, while the proposal as to PAS must be related to § 14 as a new tariff. But it is hard to force such a reading on either section. Rather we think we should say that the 1973 amendment of § 20 was not designed to alter the basic coverage of that section.

We have perhaps unduly labored the question.

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Bluebook (online)
379 N.E.2d 574, 376 Mass. 28, 1978 Mass. LEXIS 1093, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-telephone-telegraph-co-v-department-of-public-utilities-mass-1978.