DC Transit System, Inc. v. WASHINGTON MET. AREA TR. COM'N, 24586.

Citation146 US App. DC 392,452 F.2d 1321
Decision Date24 November 1971
Docket NumberNo. 24586.,24586.
PartiesD. C. TRANSIT SYSTEM, INC., Petitioner, v. WASHINGTON METROPOLITAN AREA TRANSIT COMMISSION, Respondent.
CourtUnited States Courts of Appeals. United States Court of Appeals (District of Columbia)

Mr. Harvey M. Spear, New York City, for petitioner.

Mr. Stephen L. Sharfman, Attorney, Washington Metropolitan Area Transit Commission, for respondent. Mr. Douglas N. Schneider, Jr., General Counsel, Washington Metropolitan Area Transit Commission, was on the brief for respondent.

Before TAMM and ROBB, Circuit Judges, and ADAMS,* Circuit Judge, United States Court of Appeals for the Third Circuit.

ADAMS, Circuit Judge:

This case involves a petition by D.C. Transit System, Inc. (Transit) to review Orders Nos. 1052 and 1078 of the Washington Metropolitan Area Transit Commission (WMATC). Order No. 1052 set forth findings and conclusions regarding Transit's application for a fare increase, and Order No. 1078 denied reconsideration of Order No. 1052.

On March 13, 1970, Transit filed proposed revisions of its tariffs with WMATC. These proposed revisions were based upon predictions of Transit's financial performance during a selected future period from July 31, 1970 to July 31, 1971. Extensive hearings on these proposed revisions were held, and both Transit and WMATC's staff (staff) presented estimates as to Transit's future performance. Although WMATC authorized rate increases for nearly all of Transit's routes, Transit claims that the increases are insufficient to produce a fair rate of return. Transit argues that WMATC erred in its findings and conclusions with respect to five factors bearing on Transit's predicted performance during the future annual period: estimation of passenger revenue; projection of the cost of disposing of lawsuits; amortization of a deficiency in the reserve for injuries and damages; the effect of an increase in the Minibus fare; and an estimation of revenue from charter service.

Section 17(a) of the Compact for Mass Transportation between Virginia, Maryland, and the District of Columbia provides: "The finding of the Commission as to the facts, if supported by substantial evidence, shall be conclusive." If WMATC has exercised its discretion rationally, has made findings supported by the record, and has applied correct legal standards, then it is of no import that "conflicts in the evidence might conceivably have been resolved differently, or other inferences drawn from the same record." Payne v. WMATC, 134 U.S.App.D.C. 321, 334, 415 F.2d 901, 914 (1968). See Williams v. WMATC, 134 U.S.App.D.C. 342, 362, 415 F.2d 922, 942 (1968), cert. denied, 393 U.S. 1081, 89 S.Ct. 860, 21 L.Ed.2d 773 (1969). It is with respect to this test that we review the decision of WMATC.

Transit first argues that WMATC erred in adopting Transit's own estimates of regular route ridership and resulting revenue, rather than adopting its own calculations which indicated that Transit's estimate might be too high. Transit's projection of ridership during the future annual period was based upon an annualization of the actual ridership during the 13 week period following the fare increase of October 26, 1969. The ridership forecast prepared by the staff, which exceeded Transit's by 419,703, was predicated upon the actual results of the five months immediately following the October, 1969, fare increase. WMATC performed its own calculation based upon more recent data, and noted that the calculation indicated that Transit's estimate could be high. Nevertheless, WMATC adopted Transit's figures for two reasons: (1) the burden of proving entitlement to fare increases rests with Transit, and (2) even if revenues were less than estimated, Transit would still earn enough to cover its expenses. Any loss to Transit would only reduce the rate of return.

Although "a regulatory agency is duty bound to make its forecasts as accurate as it possibly can", Williams v. WMATC, 134 U.S.App.D.C. at 393, 415 F.2d at 973, WMATC was not derelict in this duty merely because its calculation, based on more recent data, indicated that Transit's estimate might be high. WMATC's calculation was an independent check of the estimates on record, and not a finding of fact. The estimate was based upon a period for which an annualization calculation had not been verified. And most importantly, these calculations had not been subjected to the scrutiny of the various parties in the rate proceedings. Finally, the rate of return was adjusted upward to 5.21% to cover the contingency of a miscalculation of ridership revenue. Even assuming that the WMATC estimate were utilized, Transit would still be able to maintain a profit level of 4.86%. Despite any...

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2 cases
  • Democratic Cent. Com. of DC v. Washington Met. AT Com'n, 24398
    • United States
    • U.S. Court of Appeals — District of Columbia Circuit
    • 28 June 1973
    ...1 (WMATC 1970). 2 Other aspects of Order No. 1052 came under review by the court in D. C. Transit Sys., Inc. v. Washington Metropolitan Area Transit Comm'n, 146 U.S.App.D.C. 392, 452 F.2d 1321 (1971), and the order was affirmed in the particulars reviewed 3 324 U.S. 548, 65 S.Ct. 770, 89 L.......
  • Old Town Trolley Tours of Washington, Inc. v. Washington Metropolitan Area Transit Com'n, 96-1069
    • United States
    • U.S. Court of Appeals — District of Columbia Circuit
    • 14 November 1997
    ...WMATC, 805 F.2d 396, 408 (D.C.Cir.1986); D.C. Transit Sys., Inc. v. WMATC, 466 F.2d 394, 414 (D.C.Cir.1972); D.C. Transit Sys., Inc. v. WMATC, 452 F.2d 1321, 1325 (D.C.Cir.1971). Anyone familiar with these decisions--that is, anyone involved in drafting and approving revisions to the Commis......

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