New England Telephone & Telegraph Company v. Public Utilities Commission

329 A.2d 792, 1974 Me. LEXIS 282
CourtSupreme Judicial Court of Maine
DecidedDecember 10, 1974
StatusPublished
Cited by5 cases

This text of 329 A.2d 792 (New England Telephone & Telegraph Company v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine 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 Company v. Public Utilities Commission, 329 A.2d 792, 1974 Me. LEXIS 282 (Me. 1974).

Opinion

WERNICK, Justice.

On September 13, 1973 plaintiff, New England Telephone & Telegraph Company (hereinafter “New England”), filed with the defendant, Public Utilities Commission, a general revision of its schedule of Maine Intrastate Telephone Rates. The revised rates were intended to produce for New England a 9% increase in its revenues. On June 13, 1974 the Commission entered a rate order authorizing rates calculated to provide New England a 5.6% increase in revenues.

By the instant proceeding New England has invoked the jurisdiction of this Court, as New England conceives it to be conferred by 35 M.R.S.A. § 305 (hereinafter “Section 305”), 1 and has moved that par *795 ticular data not previously introduced into the evidentiary record upon which the Commission rested its June 13, 1974 order now be given cognizance to require the Commission to change its order and allow New England the 9% increase in revenues originally sought. The additional material consists of investment, revenue and expense information shown by the Company’s operations during the period July 1, 1973 through March 31, 1974.

New England contends that the newly proffered information establishes that while it is in effect, the June 13, 1974 rate order “results” in a “confiscation” of New England’s property. The additional evidence thus raises, says New England, an issue concerning which Section 30S requires this Court (1) to

" . . . exercise its own independent judgment as to both law and facts

and (2)

“ . . . as it deems necessary for the determination of such . . . [issue]

to order “ . . additional evidence to be taken . . ..”

New England’s motion proposes that this Court either: (1) remand the case to the Commission for the Commission to take the additional evidence, the Commission to have authority “after hearing such evidence” to

“modify its findings as to facts and its original decision ... by reason of the additional evidence so taken”

(according to the express provisions of Section 305); or (2) “short-cut” Section 305’s express provisions by accepting the additional evidence as tendered .by affidavit and remand the case to the Commission for verification of the data with directions that upon verification the Commission order into effect the revised rates of New England’s original rate filing.

The responsive pleading of the Commission (in the form of a motion) asks this Court to dismiss New England’s Section 305 complaint because this Court lacks subject-matter jurisdiction or, in any event, to deny the motion for additional evidence.

While this Section 305 proceeding has been pending, New England made a new rate filing with the Commission on October 8, 1974 and on October 25, 1974 asked that it be given interim effectiveness (under the authority of Bangor Hydro-Electric Company Re: Petition for Interim Rate Relief, 93 P.U.R. 3d 96 (M.P.U.C. 1972)). Claiming that the instant proceeding has thereby been rendered moot, the Commission has sought dismissal on this ground. 2

*796 For reasons hereinafter explained, we deny both of the Commission’s motions to dismiss the proceeding. We also deny New England’s motion for additional evidence.

1. Additional Factual Background

After New England had filed its general revision of intrastate telephone rates, by order of the Commission issued under Rule 4A of the Commission’s Rules of Practice and Procedure, New England, on October 10, 1973, filed its complete case in the form of prepared testimony and exhibits. Following standard procedures, New England utilized as the basis of its eviden-tiary case a “test year” constituted by the period July 1, 1972 through June 30, 1973.

The Commission held hearings on various days, five in number, and by December 18, 1973 had completed the evidentiary record on which it was to act — except that on January 23, 1974 it held a special hearing to take the evidence of intervenor Herman Cohen. Thereupon, the total evidentiary record was closed (subject only to the filing of two “late-filed” exhibits), and the Commission took the case under advisement.

Pending all of the hearings and during the period between the close of the eviden-tiary record and the entry of the Commission’s order on June 13, 1974, the Commission, pursuant to authority conferred upon it by 35 M.R.S.A. § 69, 3 suspended the effectiveness of the revised rate schedule filed by New England on September 13, 1973.

The Commission entered its rate order (to provide New England a 5.6%, rather than 9%, increase in revenues) on the last day of the maximum eight months’ suspension period authorized by 35 M.R.S.A. § 69. The Commission found that: (1) a “fair rate of return” to New England was 8.78%, and (2) the data deriving from the July 1, 1972-June 30, 1973 “test year” relied upon by New England, and accepted by the Commission as appropriate, established that a 5.6% increase in revenues would be sufficient to produce the “fair rate of return.”

Within three weeks thereafter, on July 2, 1974, New England invoked Rule 5.1 of the Commission’s Rules of Practice and Procedure and petitioned for an amendment of the Commission’s June 13, 1974 order. The petition asked the Commission to take into account data then being offered for the first time by New England derived from the actual operating experience of the Company during the period July 1, 1973 through March 31, 1974. New England maintained that by utilizing the newly tendered data without change in methodol *797 ogy or principle, the Commission would be obliged to conclude that New England could achieve the fair rate of return — as found by the Commission itself (8.78%)— only if the June 13, 1974 order was modified to allow the revised rates yielding the 9% increase in revenues. New England requested the Commission to make such re-computation and to amend its June 13, 1974 order accordingly.

On July 15, 1974 the Commission denied New England’s “petition to amend.” The Commission supported its ruling with the reasoning:

“In the Commission’s judgment there is substantial evidence within the record to support the conclusions of its June 13, 1974 Order. The entire proceeding including the June 13, 1974 Order was based on a test year selected by New England Telephone and Telegraph Company.
“The principal thrust of New England Telephone and Telegraph Company’s petition for amendment, however, is to update the financial data in the case to a twelve month period ending March 31, 1974. In the Commission’s judgment a change in the test period on which the evidence was taken represents the initiation of a new rate application; properly initiated by the filing of new rates; not by a ‘petition for amendment.’

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329 A.2d 792, 1974 Me. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-telephone-telegraph-company-v-public-utilities-commission-me-1974.