State ex rel. City of Seattle v. Public Service Commission

180 P. 913, 107 Wash. 17, 1919 Wash. LEXIS 727
CourtWashington Supreme Court
DecidedMay 13, 1919
DocketNo. 15090
StatusPublished
Cited by7 cases

This text of 180 P. 913 (State ex rel. City of Seattle v. Public Service Commission) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. City of Seattle v. Public Service Commission, 180 P. 913, 107 Wash. 17, 1919 Wash. LEXIS 727 (Wash. 1919).

Opinion

Tolman, J.

The respondent Seattle Lighting Company is a public service corporation, engaged in the manufacture, distribution and sale of gas in the city of Seattle, under a franchise granted by the city. On September 18,1917, the lighting company filed with the state public service commission a schedule of rates, known as tariff No. 2, which included a “ready to serve”, charge of twenty-five cents per month, and substantially increased the rates for gas over the rates which had theretofore been in effect. The commission set the matter for hearing on October 15, 1917, and so advised the city officials by letter. On October 9,1917, after the time for the hearing had been so fixed, the city filed a complaint with the commission in which it [19]*19alleged that the rates contemplated by the proposed tariff No. 2, were unjnst, unreasonable, discriminatory, and unlawful, and prayed that such proposed tariff be suspended for ninety days, that a hearing be had, and that the lighting company be required to sell gas at the theretofore existing rates. At the time previously fixed for the hearing, the city appeared by one of the officers of its legal department and objected to a hearing being then had, because less than ten days had elapsed since the filing of its complaint, and no notice had been issued thereon, as required by the statute, Rem. Code, § 8626-80. The commission thereupon continued the hearing as to the city until October 26 following, directed notice to be given, and proceeded with the hearing as to the lighting company, permitting the city’s legal representative to remain and participate in the proceedings. "Witnesses were sworn and testified, and thereafter the hearing was continued to October 26. On October 22 the commission, on its own motion, entered an order further continuing the hearing until January 2, 1918, and providing that tariff No. 2 should become effective October 31, 1917, pending such hearing, and until the further order of the commission. The hearing of January 2 was adjourned at the request of the city to January 9, 1918. The lighting company then put in the remainder of its evidence, the city’s evidence was introduced, the case was argued, and the hearing closed. Thereafter the commission made its findings of fact and final order, putting into effect a schedule of rates differing somewhat from tariff No. 2, excluding the “ready to serve” charge, and making such changes that it is now contended that some of the rates are raised above those contained in tariff No. 2, while others are lowered by such changes. This is now referred to as tariff No. 3.

[20]*20The city sued out a writ of review in the superior court for Thurston county, and from a judgment of that court sustaining the action of the commission, the case is brought here on appeal. Errors are assigned to the following effect: First, that the commission was without jurisdiction to proceed on October 15, 1917, because ten days had not elapsed from the filing of the city’s complaint, that the evidence taken on that day was a nullity, and that it was afterwards improperly considered by the commission; second, that the commission arbitrarily refused to place the burden of proof as to the justness and reasonableness of the proposed increase of rates upon the lighting company; third, that the order of the commission was not based upon competent proof; fourth, that the commission was without jurisdiction to establish rates higher than those proposed in tariff No. 2; fifth, that having put tariff No. 2 into effect pending the hearing, the commission is without jurisdiction in establishing tariff No. 3, to permit the lighting company to bill back or collect from customers for any excess of tariff No. 3 over tariff No. 2.

As to the first point, the statute, Rem. Code, § 8626-80, is framed for the protection of the one against whom the complaint is filed, and no objection has at any time been raised by the lighting company. The city was not required to litigate the issue raised by its complaint until after the expiration of ten days, and in the meantime was permitted to attend and participate through its legal department. Then and after-wards it had the fullest opportunity to protect its rights and present its case. Should we concede that the hearing of October 15 was irregular, still the city was not prejudiced thereby. The commission was proceeding upon its own motion for the hearing upon the [21]*21proposed tariff No. 2, filed by the lighting company, as it had power to do under § 8626-82 and other, subdivisions of that section, and we cannot hold that, by the filing of a complaint within ten days prior to that hearing, the city could deprive the commission of power to proceed with the hearing already ordered. A very different question would be presented had the commission proceeded to make its final order on October 15 while the city’s complaint was still pending and undetermined. The most that the city was entitled to was what it received, namely, the protection of all of its rights and the opportunity to present its case after ten days’ notice.

Appellant’s second point is based upon that portion of Bern. Code, § 8626-82, which provides:

“At any hearing involving any change in any schedule, classification, rule, or regulation, the effect of which is to increase any rate, fare, charge, rental or toll theretofore charged, the burden of proof to show that the changed schedule, classification, rule, or regulation, or the increased or proposed increased rate, fare, charge, rental or toll, is just and reasonable shall be upon the public service company.”

The lighting company introduced at the hearing all of the testimony, exhibits, and the opinion and findings of fact received and made by the commission at previous hearings which had never been reviewed and which stood unchallenged and uncontested, and showed an investment by the lighting company at the time of such previous hearings of $9,285,642; and in the absence of fraud, no reason appears why that finding should not stand, except as added to or modified by subsequent changes in conditions. Many detailed reports of experts made from the lighting company’s books and records were also introduced. Every witness examined with reference thereto testified to ad[22]*22ditions made to the lighting company’s properties since the previous hearings, and we think that, having due regard to the burden of proof placed on the lighting company by the statute quoted, the commission was fully justified in finding that the lighting company’s investment had increased, and that it was entitled to earn a return based upon $10,194,259.74 invested. And this, too, if the testimony of the commission’s expert, who had entered the military service of the United States before the city had an opportunity to cross-examine him, be wholly disregarded. The' commission, in the making and approval of rates, must be guided by the statute. Item. Code, § 8626-26.

“All charges made, demanded or received by any gas company, electrical company or water company for gas, electricity or water, or for any service rendered or to be rendered in connection therewith, shall be just, fair, reasonable and sufficient.”

We said in State ex rel. Northern Pac. R. Co. v. Public Service Commission, 95 Wash. 376, 163 Pac. 1143:

“We think the commission as an administrative and regulative body has peculiar powers . . .

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180 P. 913, 107 Wash. 17, 1919 Wash. LEXIS 727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-city-of-seattle-v-public-service-commission-wash-1919.