Indiana Tel. Corp. v. Public Service Commission of Ind.
| Citation | 171 N.E.2d 111,131 Ind.App. 314 |
| Decision Date | 14 December 1960 |
| Docket Number | No. 19158,19158 |
| Parties | , 37 P.U.R.3d 209 INDIANA TELEPHONE CORPORATION, Appellant, v. PUBLIC SERVICE COMMISSION OF INDIANA et al., Appellees. |
| Court | Court of Appeals of Indiana |
Claude M. Warren, Robert D. Armstrong, Indianapolis, for appellant. Gilliom, Armstrong & Gilliom, Goodrich, Campbell & Warren, Indianapolis, Cooper, Cooper, Cooper & Cox, Madison, Nordhoff & Nordhoff, Jasper, of counsel.
George L. Diven, Public Counselor, Indianapolis, Paul Schnaitter, Madison, Walter F. Jones, Jr., Indianapolis, for appellees.
The Indiana Telephone Corporation, appellant herein, filed its petition with the Public Service Commission of Indiana, appellee, on July 17, 1956, for an increase of its rates and charges. In its petition appellant alleged that the rates and charges then in effect, and which had been in effect since 1947, were unreasonably low, unjust, unfair and inadequate, and prayed the Commission to authorize new rates and charges for the appellant which would be reasonable, fair, just and adequate, and which would enable the appellant to earn a fair return of and on the fair value of its property used and useful in its telephone utility business.
On the basis of evidence presented at a hearing on January 11, 1957, the Commission issued its order wherein it found, among other things: (1) The fair value of the property of the appellant used and useful in rendering telephone service; (2) the then net operating revenue of the appellant on the basis of the 1957 rates; (3) that the 1947 rates were not sufficient to provide a fair return of and on the fair value of the property so found; and (4) that the 1947 rates should be increased so as to produce additional gross operating revenues of $744,000, thereby producing additional net operating revenues of $353,500. Further, the Commission ordered the appellant to file with the accounting department of the Commission a study showing the 1947 rates and charges; also the new and increased rates and charges calculated to yield the additional net operating income; thence upon approval of such study to file with the tariff department of the Commission a schedule of new and increased rates and charges, and thereafter to put said new increased rates and charges in effect.
The Commission further found that the telephone service being rendered by appellant was reasonably adequate but that certain additions and improvements should be made to the appellant's plant and equipment at various exchanges. The said Commission ordered and directed the appellant to make such additions and improvements and then to file with the Commission reports showing that such improvements had been made. The Commission further ordered that the new and increased rates and charges should become effective as of February 1, 1957, except in certain exchanges in which improvements were to be made prior to the rates becoming effective.
The Taxpayers' League of Madison thereafter, on the 31st day of January, 1957, filed with the Commission its petition for rehearing, which petition was granted by order of the Commission under date of March 5, 1957. Ten days later, on the 15th day of March, certain customers of appellant in Dubois County, Indiana, filed their petition that the order of the Commission dated March 5, 1957, be extended to include all subscribers within Dubois County, and that they be permitted to appear and present evidence at such rehearing. Subsequently, on the 19th day of March, 1957, the Commission entered its amended order granting a rehearing and ordering the order of January 11, 1957 to be continued in effect pending said rehearing.
On the basis of the rehearing the Commission entered its findings and order dated and approved January 24, 1958, which findings and order omitting formal parts thereof are as follows:
'The Commission, having heard the opening statement of counsel, having examined the exhibits admitted into the evidence in this cause and being duly advised in the premises, now finds that:
'1. The Indiana Telephone Corporation is a corporation duly organized and existing under the laws of the State of Indiana and has the authority to operate a telephone utility.
'2. The Indiana Telephone Corporation owns and operates 21 dial telephone exchanges and 12 manual telephone exchanges in southern Indiana and serves approximately 18,444 dial telephone stations and 16,946 manual telephone stations, providing local exchange service, intrastate toll service and interstate toll service.
'3. That an order was issued by the Public Service Commission of Indiana on January 11, 1957, authorizing the Indiana Telephone Corporation to increase its operating revenues $744,000 and directed the Company to file a study showing the then present rates and the proposed rates and charges which would produce the above-mentioned increase. The Company filed such study and subsequent thereto also filed with the Tariff Department of the Public Service Commission of Indiana a complete schedule of rates and charges calculated to produce the increased revenue so ordered.
'4. That the Public Service Commission of Indiana has jurisdiction in respect to only the local exchange service and intrastate message service.
'5. That the schedule of rates filed reflecting the increases in revenue applied generally only to local service rates with no change in intrastate message rates.
'6. That testimony introduced in both proceedings is not sufficient for the Commission to determine the proportion contributed to over-all earnings by the three major classifications of service; (1) local exchange service, (2) intrastate message service, and (3) interstate message service. In its presentation the Company alluded to certain increases in interstate revenues and brought forth certain testimony as regards to methods, cost and length of time required to make an allocation study of revenues, expenses and plant.
'7. That the property actually used and useful for the convenience of the public in its intrastate operations in the State of Indiana cannot be determined from testimony presented before the Commission. Nor can the appropriate expenses for rendering such services be determined.
'8. That the testimony adduced is not sufficient for the Commission to determine whether the rates filed are properly applicable to the cost of service for intrastate message service and local exchange service.
'9. The Indiana Telephone Corporation has not borne the burden of proof required of it in that it has failed to provide proper and adequate information to allow the determination of the reasonableness of the rates now being charged by the Company. The Company's general books or records cannot enable the Commission staff nor the Commission to determine plant, nor expenses related to interstate services. The Company did not introduce any testimony nor exhibits to assist the Commission in the determination of the just and reasonable rates for intrastate local exchange service and toll service.
'10. The Commission finds lacking such information and finds that it cannot approve the tariff sheets and rates stated therein (now on file with this Commission and being charged) and that they should be cancelled and stricken from the files of the Commission and that the previous rate schedules and rates in effect, to-wit, Supplement No. 1 to P. S. C. I. No. T-12, issued January 23, 1950 and Supplement No. 2 to P. S. C. I. No. T-11, issued April 22, 1952, are the only proper and legal rates the Commission can approve and enforce at this time, and that P. S. C. I. No. T-13, Part II, Section 1, Sheets 1 through 6, inclusive, are hereby cancelled.
'It is Therefore Ordered by the Public Service Commission of Indiana,
'1. That the order of this Commission in the above cause dated January 11, 1957 is hereby specifically cancelled.
'2. That P. S. C. I. No. T-13, Part II, Section 1, Sheets 1 through 6, inclusive, be and the same are hereby cancelled as of February 1, 1957 because of insufficient evidence to support the same.
'3. That in lieu thereof, Supplement No. 1 to P. S. C. I. No. T-12 and Supplement No. 2 to P. S. C. I. No. T-11 are reinstituted, effective as of February 1, 1957.
'4. That all monies collected under P. S. C. I. No. T-13, Part II, Section 1, Sheets 1 through 6, inclusive, are hereby declared to have been illegally collected, and the difference between the monies collected under P. S. C. I. No. T-13, Part II, Section 1, Sheets through 6, inclusive, and Supplement No 1 to P. S. C. I. No. T-12 and Supplement No. 2 to P. S. C. I. No. T-11, are hereby ordered refunded to the affected ratepayers, and the Indiana Telephone Corporation is granted 180 days from the date of this order to effect such refund.
'It is Further Ordered that Petitioner, Indiana Telephone Corporation, shall pay into the Treasury of the State of Indiana, through the Secretary of this Commission, the sum of $2,645.63, which sum is itemized as follows, as well as any future additional charges that may be incurred in this cause:
"Accounting Costs ... $1,727.30
"Engineering Costs .. 806.78
"Advertising Costs .. 111.55
---------
"Total ......... $2,645.63
'Van Ness, Skelton and Haymaker Concur:
'Approved: January 24, 1958'
It is the Commission's decision, ruling and order of January 24, 1958, which is the subject of this appeal.
The appellant filed assignment of errors consisting of twenty-two separately numbered assignments, the first two being as follows:
Assignment of Error No. 1. 'The decision of the Commission dated, entered and approved January 24, 1958, is contrary to law.'
Assignment of Error No. 2. 'The decision, ruling and order of the Commission dated, entered, and approved January 24, 1958, is contrary to law.'
The appellant prays that such decision, ruling and order of the Commission be in all things reversed, vacated and set aside, and that the enforcement...
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