Pacific Bell v. Public Utilities Commission

79 Cal. App. 4th 269, 93 Cal. Rptr. 2d 910, 2000 Daily Journal DAR 3127, 2000 Cal. Daily Op. Serv. 2334, 2000 Cal. App. LEXIS 213
CourtCalifornia Court of Appeal
DecidedMarch 23, 2000
DocketNo. A087250
StatusPublished
Cited by21 cases

This text of 79 Cal. App. 4th 269 (Pacific Bell v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Bell v. Public Utilities Commission, 79 Cal. App. 4th 269, 93 Cal. Rptr. 2d 910, 2000 Daily Journal DAR 3127, 2000 Cal. Daily Op. Serv. 2334, 2000 Cal. App. LEXIS 213 (Cal. Ct. App. 2000).

Opinion

Opinion

HANING, J.

This petition for writ of review, one of the first presented to the Court of Appeal under jurisdiction recently established by Public Utilities Code section 1756,1 raises an important issue of appellate procedure. Where the Legislature has authorized a writ of review as the exclusive method of challenging a Public Utilities Commission (PUC or commission) decision, must the Court of Appeal grant the writ, examine the PUC’s certified record, provide oral argument, and decide the matter by written opinion each time an applicant presents a procedurally proper writ petition? We conclude we may elect to follow these procedures for the benefit of the parties or the public, but that we need not do so if the petitioning party fails to present a convincing argument for annulment of the PUC’s decision.

Pacific Bell is a public utility providing, inter alia, telephone service and is subject to PUC regulation. If filed an “advice letter” with the PUC attempting to amend a tariff to remove references to nonregulated “yellow pages.” The PUC required Pacific Bell instead to file a formal application to change the tariff in question. Rather than file a formal application, Pacific Bell elected to seek rehearing by the PUC of its decision rejecting the advice letter. The rehearing petition was a prerequisite to challenging the commission’s resolution in court, as Pacific Bell has now done. (§ 1756, subd. (a).) We conclude the commission acted within its authority when it required a formal application to change the tariff.

We find it unnecessary to issue a writ of review to decide that the PUC acted within its procedural authority. The substantive issue is not sufficiently significant to address at this preliminary stage, before Pacific Bell has followed the PUC’s directive to present the matter by formal application. We [273]*273issue this opinion with the expectation that our resolution of the procedural question will assist other litigants.

Background

The Current Yellow Pages Situation

As the telecommunications industry has evolved, Pacific Bell has begun to move away from the one-volume telephone directory, which combines both an alphabetical listing of customers (white pages) and a collection of commercial service listings arranged by category (yellow pages). In its place, in larger markets including San Francisco, Los Angeles and several others, Pacific Bell offers separate volumes for white and yellow pages.

According to the parties (whose assertions we accept because they have not provided copies of all relevant parts of the tariffs), Pacific Bell is required to provide white pages free of charge to all customers in the area affected by each telephone directory (service area customers). Pacific Bell may also offer white pages to “foreign” customers, meaning those outside the affected areas, and may charge these foreign customers the amounts specified in the tariff, which range from $4.20 to $13.30 per directory.

Section 728.2 prohibits the PUC from regulating telephone directory advertising. Consequently, the tariffs do not expressly regulate yellow pages. Nevertheless, because historically the two directories have been bound ^together, the price list included in Pacific Bell’s tariff, prior to the proposed change in issue here, has listed each directory locale followed, in most cases, by an “x” in the column “yellow pages included” and then the price established by the tariff for that (combined) volume.

Pacific Bell’s Proposed Change

Pacific Bell proposes to alter the status quo by binding all white and yellow pages separately. It will continue to provide the white pages free to service-area customers and continue to charge the tariff prices for foreign customers requesting white pages outside their service area. Pacific Bell proposes to merely excise from the tariff the words “yellow pages included” and the corresponding “x’s” wherever they appear. Pacific Bell has not said how it intends to market or distribute its yellow pages, which would not be governed in any way by tariff.

Procedure for Changing a Tariff

Section 489, subdivision (a), requires every public utility to file with the PUC a tariff—a schedule “showing all rates, tolls, rentals, charges, and [274]*274classifications . . . together with all rules, contracts, privileges, and facilities which in any manner affect or relate to rates, tolls, rentals, classifications, or service.” Such a tariff, when approved by the PUC, has the force of law. (Trammell v. Western Union Tel. Co. (1976) 57 Cal.App.3d 538, 549-550 [129 Cal.Rptr. 361].) Only by following procedures specified in or developed under section 454 may the utility then change its published tariff. (Wood v. Public Utilities Commission (1971) 4 Cal.3d 288, 292-293 [93 Cal.Rptr. 455, 481 P.2d 823].)

Section 454, subdivision (a) requires in most cases notice to customers and an “application to the commission for approval” of any new rate or any request to so alter any rule or practice as to result in a new rate. However, “[t]his notice requirement does not apply to any rate change proposed by a corporation pursuant to an advice letter submitted to the commission in accordance with commission procedures for this means of submission.” (Ibid.) Section 454, subdivision (b) authorizes the PUC to adopt reasonable rules of procedure to be followed by each class of public utility in making its showing to the commission.

Rules 23 and 24 of the PUC’s Rules of Practice and Procedure establish the procedures for a formal application to change a tariff. The less formal “advice letter” procedures are set forth in PUC General Order No. 96-A (GO 96-A). A formal application must be used to raise rates unless the increase is “minor in nature,” in which case “the commission may accept a showing in the advice letter provided justification is fully set forth therein.” (GO 96-A, H VI.) The advice letter must “call attention to each increase or decrease in rate or charge, or change in condition which may result in an increase or decrease, more or less restrictive conditions, or withdrawal of service. . . . [H] If the tariff schedules as filed will result in an increase or decrease in revenues, the advice letter should give an estimate of the annual revenue effect thereof.” (GO 96-A, IIIC.)

Pacific Bell’s Advice Letter

Pacific Bell’s advice letter followed the format requirements. It listed the tariff sheets affected by the proposed change and attached the changed sheets with changes marked. The tariff sheets showed that the changes affected 49 of Pacific Bell’s 60 local phone directories.2 However, the letter itself was brief, stating only that the filing would revise the tariff to [275]*275eliminate the references stating “yellow pages included.” It explained that “[t]he yellow page directories were previously referenced because they were co-bound and provided with the white page directory at no additional cost. Yellow page directories are not regulated and are not tariffed. flO The alphabetical or ‘white page’ telephone directory is the tariffed product and will be provided as a separately bound directory. [^] The revision will not alter the Utility’s tariff obligation to provide alphabetical or white page directories at no charge . . . .

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79 Cal. App. 4th 269, 93 Cal. Rptr. 2d 910, 2000 Daily Journal DAR 3127, 2000 Cal. Daily Op. Serv. 2334, 2000 Cal. App. LEXIS 213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-bell-v-public-utilities-commission-calctapp-2000.