Public Service Commission v. District Court of the First Judicial District ex rel. County of Lewis & Clark

511 P.2d 334, 162 Mont. 225, 1973 Mont. LEXIS 521
CourtMontana Supreme Court
DecidedJune 8, 1973
DocketNo. 12512
StatusPublished
Cited by1 cases

This text of 511 P.2d 334 (Public Service Commission v. District Court of the First Judicial District ex rel. County of Lewis & Clark) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Public Service Commission v. District Court of the First Judicial District ex rel. County of Lewis & Clark, 511 P.2d 334, 162 Mont. 225, 1973 Mont. LEXIS 521 (Mo. 1973).

Opinion

MR. JUSTICE CASTLES

delivered the Opinion of the Court.

This is an original proceeding brought by the Public Service Commission of Montana seeking a writ of supervisory control directed to the district court of the first judicial district, Lewis and Clark County, Judge Meloy presiding. The writ sought would direct the respondent court to sustain objections to interrogatories submitted by plaintiffs in district court causes No. 36398 and No. 36402.

Plaintiffs in the district court are: The Anaconda Company; Anaconda Aluminum Company; Hoerner Waldorf Corporation of Montana; City of Helena; and C. W. Leaphart, Jr. Plaintiffs were protestants to certain electric and gas rate increases granted The Montana Power Company by relator Public Service Commission by its order No. 4068, in Docket No. 6100. Plaintiffs filed suit seeking a review of that order under section 70-128, R-C.M. 1947.

[227]*227Plaintiffs, purportedly acting under Rule 33, M.R.Civ.P., served written interrogatories upon the Public Service Commission. Objections, with a supporting brief, to all interrogatories were filed by the Commission. Oral argument was had before the respondent district court. Following oral argument, the court issued its order with a “Memorandum Opinion”. The Commission’s objections were sustained to some thirty-five interrogatories in one cause, and ordered answers to be made to four. In the other cause, objections were sustained to two, and answers ordered on some thirty-six interrogatories.

Essentially, the Commission’s objections were that it was acting in a legislative capacity and all of its proceedings and methods of determination are exempt and privileged except as to its formal order, No. 4068. Additionally, section 70-128, R.C.M. 1947, which provides for a review of actions of the Public Service Commission, is a special proceeding excepted by Rule 81, M.R-Civ.P., from the civil rules insofar as it is inconsistent or in conflict as listed in Table A of the Rules of Civil Procedure. Since section 70-128 authorizes a review, no new or additional evidence can be considered independent of the Commission’s determination.

On ex parte application, this Court granted an alternative writ and return was made, briefs filed, and oral argument had. The return includes a motion to quash the alternative writ on the ground that supervisory control is not proper, as the remedy of appeal is adequate.

The primary issue is whether the Commission is required to answer interrogatories relative to the methods and procedures utilized in reaching a decision to allow a rate increase.

Commission Order No. 4068 in Docket No. 6100 is a fifty-three page order. It is divided essentially into two parts, gas and electricity. As to each of these, it includes findings of fact. The findings reflect the total valuations used by the Commission, the net earnings, the rate of return presently, the rate of return found fair, and the amount of increase needed; together with a schedule of rates and charges. Preliminary to these findings, [228]*228the Commission recited some detail of the Company’s valuations put into evidence and what consideration the Commission gave in reaching its results. The order recites considerable matters entering into the Commission determinations.

The interrogatories under consideration here are lengthy. A few samples will show the general thrust. The interrogatories sought; present value of gas production facilities; transmission facilities; distribution facilities; recoverable gas reserves; volume of gas reserves; original cost of gas reserves; amount eliminated from valuation for future expectations of inflation; reserves and accruals found available for working capital needs, etc. Each of the items sought was an item included or excluded from the total amounts found by the Commission-

The trial court filed a memorandum which, curiously, quoted from the dissenting portion of Cascade County Consumers Assn. v. Public Service Commission, 144 Mont. 169, 204, 394 P.2d 856, 874, that “further clarification should be had as to exactly what was included in the rate base”. The trial court in its memorandum then went on to say that to make a meaningful review of the transcript of the evidence and the exhibits before the Commission it, the court, needed the details making up the Commission’s findings of fact.

The trial court in its return here described the record before the Public Service Commission as “voluminous and extensive” and the order being reviewed as “cryptic and brief”. It then went on to observe that each interrogatory which seemed to invade or delve into the mental processes of the Commission had been stricken, but interrogatories with respect to questions of fact had been allowed. Respondent court observed that the answers to the interrogatories would “merely isolate certain factual matter which, if answered, would save the time of the Court and expedite the proceedings”.

Be that as it may, it may all be so, the evidence presented to the Commission requires the court to review it all under the normal rules. To say that individual items going to make up the whole is not a part of the mental processes of the Commis[229]*229sion is not realistic. If the whole as found by the Commission is supported by the record, the individual parts and the various methods of computation to arrive at the whole must certainly be a part of the mental processes. Certainly in considering legislative proceedings, the myriad of detail going to the thought processes of individual legislators cannot be the subject of interrogatories. We make it clear that we are not dealing with parties to the action, but rather with the Body whose decisions are-being reviewed.

Peviously herein, we have set forth examples of the general thrust of the interrogatories. Three of the examples seek present value of “recoverable gas reserves”, volume of “recoverable ga; reserves”, and original cost of gas reserves. In the Commission’s order, under Part A, it stated:

“Included in the RCN and BOND valuations were recoverable natural gas reserves of the company. These reserves were valued at 5.13 cents per MCF. This value of 5.13 cents per MCF was based on two transactions occurring in 1971.

“The company had purchased 2.79 billion cubic feet of recoverable gas reserves in the South Devon field at a cost of $152,000. The company also purchased 5.26 billion cubic feet in the Lait field in southern Canada at a cost of $261,150. The weighted average cost of these purchased reserves was 5.13 cents per MCF. This unit value was then used for all the recoverable gas reserves in place of the company in arriving at the reproduction cost valuations of the company.

“The commission is of the opinion that these reserves are of' tremendous importance to the customers of the company andl certainly have a value in any reproduction cost determination, of the company’s natural gas properties. No other unit valuation was proposed at the hearings.

"The change in the natural gas reserve picture adds to the: tremendous importance of the natural gas reserves of the company. In 1950 the known reserves of gas were 185 trillion cubic feet (TCF) and the annual production of gas was 6.9 TCF, so; [230]*230that- reserves were almost 27 times annual use. Reserves climbed slowly until 1968, but annual use climbed faster.

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511 P.2d 334, 162 Mont. 225, 1973 Mont. LEXIS 521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-service-commission-v-district-court-of-the-first-judicial-district-mont-1973.