US West Communications, Inc. v. New Mexico State Corp. Commission

865 P.2d 1192, 116 N.M. 548
CourtNew Mexico Supreme Court
DecidedDecember 1, 1993
Docket21081
StatusPublished
Cited by6 cases

This text of 865 P.2d 1192 (US West Communications, Inc. v. New Mexico State Corp. Commission) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
US West Communications, Inc. v. New Mexico State Corp. Commission, 865 P.2d 1192, 116 N.M. 548 (N.M. 1993).

Opinion

OPINION

RANSOM, Chief Justice.

This case was removed from the State Corporation Commission to this Court by US West Communications pursuant to Article XI, Section 7 of the New Mexico Constitution. Under Article XI, Section 8 of the Constitution, the Commission must rule on a petitioner’s requested rate change within six months of the date of the filing of the application. If the Commission does not rule within six months, the petitioner may implement its requested rates pending a final order by the Commission. Following US West’s filing of an application for rate change, the Commission entered an order deferring retroactively the commencement date of the constitutional six-month suspension period from the date of the actual filing to the date that the application was complete. US West contests this order. We affirm.

Facts and proceedings. On August 28, 1992, U S West, a telephone company and provider of public telecommunications services, filed an application with the Commission requesting approval of a permanent rate increase of $29.6 million annually. The company also filed a motion requesting an interim rate increase of $13.2 million to be effective January 1, 1993. The application included permanent and interim schedules containing numerous proposed rate changes affecting various types of services and the written direct testimony and exhibits of twelve witnesses. The application, however, did not contain specific rate base or intrastate investment information as required.

After the original application was filed, the Commission staff reviewed the application and discovered that the investment information was missing. Article XI, Section 7 of the New Mexico Constitution mandates that the Commission give “due consideration” to investment information before ruling on any application submitted by a telecommunications service provider. Because of this, the staff requested that US West supply the information, and on October 5, 1992, US West complied. On October 26, the staff moved to dismiss the original application because it was constitutionally deficient. Alternatively, the staff requested that the Commission rule that the six-month suspension period did not commence until October 5.

On November 24, the Commission denied the staffs motion to dismiss but granted its request that October 5 be deemed the commencement date of the six-month suspension period. As a basis for its ruling, the Commission decided that US West’s application was constitutionally deficient until October 5. After this ruling, the Commission’s review process continued and on April 8, 1993 it entered an order allowing US West to increase its rates by $7,909 million annually. A subsequent order by the Commission reduced this amount to $7.1 million.

Issue and standard of review. US West contends that, because the six-month suspension period is mandated constitutionally, the Commission had no authority to defer retroactively the period’s commencement date. The Commission and the Attorney General contend that the Commission is clothed with broad constitutional authority, including the authority to set the beginning and ending dates of the six-month suspension period. Because the issue of the Commission’s authority to defer the beginning of the six-month time period is solely a question of constitutional construction, we shall apply our independent judgment. See Arco Alaska, Inc. v. Alaska, 824 P.2d 708, 710 (Alaska 1992) (stating that constitutional questions are questions of law to which the court applies its independent judgment).

The Commission has the inherent authority to dismiss a constitutionally deft-dent application. The Commission and the Attorney General contend that the authority to defer the beginning of the six-month period falls within the same basic inherent power as the authority to dismiss an application. US West does not dispute the fact that the Commission has the power to dismiss an application despite the fact that the Constitution does not expressly grant it that power. Nevertheless, it is important to discuss the basis for that authority because it relates to the Commission’s inherent authority to take other actions.

In describing the authority of the Commission, this Court previously has stated that “[i]t is difficult to conceive of a more clear and all-inclusive grant of power to a governmental agency.” Mountain States Tel. & Tel. Co. v. New Mexico State Corp. Comm’n, 90 N.M. 325, 331, 563 P.2d 588, 594 (1977) [hereinafter Mountain States 1977]. This Court described this grant of power as “plenary”, see id. at 334, 563 P.2d at 597 (quoting San Juan Coal & Coke Co. v. Santa Fe, San Juan & N. Ry., 35 N.M. 512, 517, 2 P.2d 305, 307 (1931)), and “so broad that little room is left for construction.” See id. The Commission’s grant of power is limited only in that it

is bound by, and limited to, its existing rules and regulations, proper application of the law, compliance with the constitutional mandate, and by previously established methods of ratemaking, absent a change in circumstances peculiar to the company and the pending case, making it necessary that there be a departure from established methods.

General Tel. Co. v. Corporation Comm’n (In re General Tel. Co.), 98 N.M. 749, 755, 652 P.2d 1200, 1206 (1982).

The New Mexico Constitution grants the Commission the authority to “prescribe its own rules of order and procedure, except so far as specified in this constitution.” N.M. Const, art. XI, § 4. The Commission has used this authority to develop procedural rules, including a rule regarding motions to dismiss. Rule 21 of the Commission’s Rules of Procedure states:

A party to a proceeding before the Commission may at any time move the Commission to dismiss the proceedings, or any portion thereof, for lack of jurisdiction, failure to meet the burden of proof, or failure to comply with the rules of the Commission or for other good cause shown.

US West does not challenge the propriety of this rule and at oral argument affirmatively conceded that at the time it filed its application the Commission had continuing authority to dismiss its application. Supported by federal courts and sister state courts that recognize a regulatory commission’s power to dismiss deficient applications, we conclude as a matter of law that the Commission had this authority. See, e.g., Municipal Light Bds. v. Federal Power Comm’n, 450 F.2d 1341, 1345 (D.C.Cir.1971) (holding that commission may reject any filing that “patently is either deficient in form or a substantive nullity”), cert. denied, 405 U.S. 989, 92 S.Ct. 1251, 31 L.Ed.2d 455 (1972); Intermountain Gas Co. v. Idaho Pub. Util. Comm’n, 98 Idaho 718, 722, 571 P.2d 1119

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865 P.2d 1192, 116 N.M. 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-west-communications-inc-v-new-mexico-state-corp-commission-nm-1993.