80 Pa. Super. 528 | Pa. Super. Ct. | 1923
Opinion by
On May 29, 1920, the Lewistown-Reedsville Water Company filed a new schedule of rates effective July 1, 1920. Complaints against the reasonableness of the new rates were filed prior to the effective date. These were consolidated and heard together. The commission found the fair value of the company’s used and useful property to be one million dollars, and allowed seven per cent per annum as a fair return thereon; it also allowed an annual depreciation of $7,500 and operating expenses 'of
The assignments of error raise a number of questions which we will discuss in the following order:
1. The elements proper to be considered by the Public Service Commission in ascertaining and determining the fair value for rate-making purposes of the property of a public service company are enumerated at some length in section 20 (a), article V, of the Public Service Company Law and have been considered in decisions so fully and recently, (Ben Avon Boro. v. Ohio Valley Water Co., 68 Pa. Superior Ct. 561, 577; Beaver Valley Water Co. v. P. S. C., 76 Pa. Superior Ct. 255, 259; Scranton v. P. S. C., decided by this court April 16, 1923, (October Term, 1921, No. 152, 80 Pa. Superior Ct. 549), that it is not necessary to mention them here in detail. It suffices to say that the commission is not restricted to an allowance of a fair return upon the amount of capital actually
2. Appellant admits that there was competent and substantial testimony produced before the commission on which to. base the findings of fact and order of the commission, but asks this court to disregard such findings and on its own independent judgment as to the law and the facts in evidence make its own findings as to the fair value of the water company’s property and the annual gross revenues which it is entitled to receive. We do not understand that such is our province in the status of this case. No question of confiscation is raised in this appeal, but only whether the order of the commission is reasonable and in conformity with law. In such circumstances the duty of this court was stated in Lansdowne Boro. v. P. S. C., 74 Pa. Superior Ct. 203, 209, as follows : “In reviewing the order of the commission it is not our province to substitute our judgment as to the rates to be charged for that of the commission or usurp administrative functions committed to it. Power to make the order and not the mere expediency or wisdom of having made it, is the question. The order of the commission in the premises is final unless (1) beyond the power which it could constitutionally exercise; or (2) beyond it's statutory power; or (3) based upon a mistake of law; or (4) the result of the commission’s having arbitrarily fixed the rates contrary to evidence, or without evidence to support it, or in a grossly unreasonable manner.” It is true that this statement of the law was based on the opinion of the Supreme Court in Ben Avon Boro. v. Ohio Valley Water Co., 260 Pa. 289, 297, and that decision was reversed by the Supreme Court of the United States in Ohio Valley Water Co. v. Ben Avon Boro., 253 U. S. 287, but' the basis for the reversal was stated in the following extract from the opinion: “The order here involved prescribed a complete schedule of maximum future rates and was legislative in character. (Citations) In all such cases, if the owner claims confiscation of his
3. The same principle applies with respect to the commission’s findings and order as to operating expenses. They were not determined arbitrarily or in a grossly unreasonable manner, but are supported by substantial evidence; and our attention has not been called to any item allowed contrary to law.
5. The commission did not totally disregard the original cost of the plant in determining the fair value of the respondent’s property for rate-making purposes. On the contrary, it fully considered the estimates made by both complainants’ and respondent’s engineers as to the original cost, but as complete records were not available and the figures submitted were merely estimates, concluded that they did not furnish an accurate statement of original cost which could be used in determining fair value. We see no error in this. See Beaver Valley Water Co. v. P. S. C., 76 Pa. Superior Ct. 255, 260.
The remaining questions raised by the assignments of error do not merit special consideration. The order, in our opinion, is reasonable and in conformity with law.
As to the contention of the intervening appellee that the order of the commission is not final and the appeal is, therefore, premature, the Public Service Company Law; does not limit appeals to this court to “final orders” of the commission, but to such as dismiss the complaint or direct the company to satisfy the cause of complaint in whole or to such extent as the commission may specify: article YI, sections 10 and 17; Citizens Pass. Ry. Co. v. P. S. C., 271 Pa. 39, 48, 49, 50. The order appealed from was of such a character.
The appeal is dismissed and the order of the commission is affirmed at the costs of the appellant.