Southwestern Bell Tel. Co. v. State
| Citation | 214 P.2d 715,202 Okla. 291 |
| Decision Date | 20 September 1949 |
| Docket Number | 33645,34054. |
| Parties | SOUTHWESTERN BELL TELEPHONE CO. v. STATE et al. |
| Court | Oklahoma Supreme Court |
Syllabus by the Court.
1. Where, in a proceeding brought by a public utility before the Corporation Commission for a permanent state-wide increase in rates, it appears that the investigation and determination of the necessity of such increase will consume a considerable period of time, and the Corporation Commission, after a hearing had upon application by the utility therefor, denies an application for temporary increased rates pending final disposition of the permanent rate hearing, from which the utility appeals to this court and supersedeas is allowed under Section 21, Article 9 of the Constitution, the decision of this court on the utility's appeal from the order of the Commission denying temporary increased rates will be withheld pending final disposition of the application for increased permanent rates, and the order of the court allowing supersedeas continued in force.
2. Where, upon appeal from an order of the Corporation Commission refusing a temporary increased rate, this court upon application by a public utility, allows it to supersede the order of the Commission and place in effect a temporary increased rate in a given amount pending the determination of the appeal, the making of such order does not deprive the Commission of all jurisdiction over temporary rates, or authorize the public utility, without application to the Commission, to place in effect a second and further increase in its temporary rate.
3. Where, at the time an appeal by a public utility from an order of the Corporation Commission denying it a further and second temporary increase in rates, and enjoining it from putting a further and second increase in effect, is submitted to this court, it appears that the taking of testimony in connection with an application for a permanent increase in the rates of such public utility has been completed, and that the Commission will within a short time pass upon and determine the application for increase of the permanent rate, and where it further appears that the earnings of the public utility, under a rate increase placed in effect by it under a supersedeas bond allowed by the court are considerably in excess of all operating and other expenses of the utility, this court may, in the exercise of its judicial discretion, affirm the order of the Commission denying such further temporary increase pending decision by the Commission upon the application for permanent rate increase.
Cantrell Carey & McCloud, Oklahoma City (Edward M. Box, Oklahoma City Ronald J. Foulis, St. Louis, Mo., Earl H. Painter, St. Louis Mo., of counsel), for plaintiff in error.
James G. Welch and Charles F. White, Oklahoma City, for defendant in error.
On September 30, 1947, Southwestern Bell Telephone Company, hereinafter referred to as the Company, filed with the Corporation Commission of the State of Oklahoma, hereinafter referred to as the Commission, its application for an increase in the rates which it was permitted to charge for intrastate telephone service in this State. On December 10, 1947, the Company filed an application for temporary or emergency rates for intrastate service pending the final hearing and determination of its application for permanent increase. After numerous hearings at which a considerable amount of evidence was adduced by the Company, and some evidence by the Commission, the Commission on April 19, 1948, made and entered an order denying the allowance of a temporary or emergency rate as prayed for by the Company. The Company gave notice of appeal from this order, and at the same time requested that the Commission allow it to file a suspending or supersedeas bond and place the temporary rate prayed for by it in effect pending the determination of the appeal, as provided by Art. 9, section 21 of the Constitution. Upon the denial by the Commission of the application to file a supersedeas or suspending bond and place the temporary rate in effect the Company on May 24, 1948, perfected its appeal from the order denying the application for a temporary or emergency rate
as prayed for by it, by filing in this court its petition in error to which was attached a transcript of the record consisting of five volumes, certified to as a correct transcript of the record in the cause up to and including the completion of the hearing on the application of the Company for the allowance, granting and establishment of increased temporary intrastate telephone rates, including all proceedings had in said cause, all proceedings on April 13, 1948, and particularly proceedings had on April 19, 1948. On the same date the Company filed in this court an application for the allowance of a supersedeas and for permission upon the execution of a superesdeas or suspending bond, to put into effect a temporary or emergency increase in its intrastate rates sufficient to produce additional revenue from that source in the amount of $3,077,661.00, which additional or increased rate it represented would produce compensation upon the capital invested by it in the State of Oklahoma for intrastate telephone service at the rate of six per cent per annum. During the hearing on the application of the Company for an allowance of increased temporary rates it was stipulated by the parties and ordered by the Commission that all testimony taken in that matter be considered as testimony in the hearing for a permanent rate increase.
At the conclusion of the hearing on the application of the Company for the allowance of temporary or emergency rates the Commission made its order denying such application in which it found that the Company was receiving sufficient income from its intrastate operations to pay operating costs, fixed charges, including interest on all borrowed capital, with a balance for common stock equity in a sum slightly in excess of one half of one per cent. This computation being made on the assumption that the Company's separation between intrastate and interstate operations was correct, which fact was not determined, but withheld for determination in the permanent rate investigation, and without taking into consideration certain adjustments suggested by the auditor for the Commission.
Upon the application for supersedeas this court, after consideration of the evidence submitted in support of the application for temporary or emergency rates, and after consideration by this court of the written statement of the reasons given by the Commission for denying the application for temporary or emergency rates, and for denying supersedeas bond, on July 16, 1948, entered its order as follows:
'It is ordered that the application of the appellant, Southwestern Bell Telephone Company, for supersedeas be, and the same is hereby, approved and the order of the Corporation Commission refusing to fix increased temporary rates on the petition of the appellant is hereby superseded an suspended upon filing by appellant with the Clerk of this Court a suspending or supersedeas bond in the sum of $500,000, with good and sufficient sureties, to be approved by the Clerk of this Court, conditioned that the appellant shall promptly refund to the parties entitled thereto all rates or charges which the appellant may collect or receive pending the appeal herein in excess of those authorized by the final decision herein as provided by Article 9, Section 21 of the Constitution of Oklahoma as amended in 1941, and as provided in the form of bond contained in the Suggestions of the Court filed by the appellant on July 10, 1948, in this cause.
'It is further ordered that the Corporation Commission may on proper showing that the said bond is insufficient require the appellant to file an additional bond or bonds.
'It is further ordered that the Corporation Commission specify to appellant the nature, form, and extent of the accounting to be kept by appellant for subsequent reporting to the Corporation Commission.'
On July 17, 1948, after making the bond required by the foregoing order of this court, the Company placed in effect temporary intrastate rates designed to produce the sum of $3,077,661.00. The Commission does not contend that under the showing made by the Company in its application for temporary or emergency rates the Company is receiving a fair and just return on its investment, its chief contention being that so long as it had an income sufficient to pay operating costs, fixed charges, including
interest on borrowed capital with any amount over for common stock that no emergency existed and that for that reason the Company was not entitled to increase temporary rates.
In support of this contention the Commission relies upon the case of New England Telephone & Telegraph Co. v. State, 95 N.H. 58, 57 A.2d 267, 271. In that case the New Hampshire Supreme Court held that under a New Hampshire statute providing that where an emergency exists the public service commission of that State was authorized to temporarily alter, amend or suspend existing rates, charges, prices, etc., the emergency relief so granted need only be sufficient to prevent operating losses of the utility involved, and to pay accruing interest on the company's bonds. Therein it said:
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