174 Pa. Super. 62 | Pa. Super. Ct. | 1953
The Duquesne Light Company and the City of Pittsburgh have appealed from the order of the Pennsylvania Public Utility Commission of March 9, 1953, wherein the Commission, with certain exceptions therein indicated, affirmed its order of August 29, 1951, and again directed the Duquesne Light Company to submit the amount of refund due to. each customer as set forth in the previous order.
The present proceeding is the result of the reversal of the Commission’s order, of August 29, 1951, and the remanding of the record, for further action and consideration by.the Commission in certain respects. City of Pittsburgh v. Pennsylvania Public Utility Commission, 171 Pa. Superior Ct, 187, 90 A. 2d 607.
Following the order of this Court, reversing the Commission’s order of August 29, 1951, and remanding the record for the purposes therein set forth, the Commission provided that hearings be held beginning December 11, 1952. . On that date Duquesne filed a new tariff (No. 12) proposed to become effective March 1, 1953, and containing the same rates as tariff No. 10 which had been found excessive by the Commission in its order of August 29, 1951. Tariff No. 12 would increase annual revenues by $4,800,000. Complaints were filed against this last tariff. The Commission has instituted an investigation on its own motion and has suspended the operation of that tariff for a period of six months, or until September 1, 1953.
At the hearings before the- Commission on December 11 and 12, 1952, and February 18, 1953, Duquesne contended, in effect, that under the order of this Court in City of Pittsburgh v. Pennsylvania Public Utility
On April 16, 1953, we granted Duquesne’s petition for supersedeas as to the calculation and payment of refunds ordered by the Commission on March 9, 1953, amounting to approximately $3,400,000 with interest.
The order of the Commission of March 9, '1953,. will be affirmed.
In accordance with the order of this Court (City of Pittsburgh v. Pennsylvania Public Utility Commission, 171 Pa. Superior Ct. 187, 218, 90 A. 2d 607), the Commission revised and modified its previous order of
The City and the Industries had complained that the Commission adjusted 1949 expenses upward to reflect certain actual increased expenses incurred in 1950, but that it did not correspondingly adjust 1949 revenue figures to reflect an increase in operating revenues as shown by Duquesne’s report to the Commission for the year 1950. Consequently the Commission re-examined the feasibility of adjusting 1949 revenues in light of 1950 experience, and concluded it was impractical. But, In its order of March 9, 1953, the Commission has reassessed the evidence and made certain revisions in its prior order. It reduced the previous estimate of Duquesne’s allowable taxes, exclusive of income taxes, by $1,088,339, largely because of the repeal of the federal electric energy tax by the Revenue Act of 1951. The Commission found, however, that Du-quesne’s federal income tax would be increased by that Act in the amount of $1,308,200, and that its state tax would be increased by $44,400. In the matter of wages, salaries, and pensions, the Commission disallows the prior estimated 1950 increases to the extent of $497,000, and it deducted $420,000 of allowable return due to the decrease of $7,000,000 in the finding of fair value. The final result of these modifications and adjustments of
The Commission then determined that the reduction of $652,739 in allowable revenues from those authorized in the previous order, being approximately one per cent of the total, was, from a practical standpoint, too small a reduction to he reflected in lower rates under a new tariff. On the basis of this finding the Commission refused to make an order of possible refunds (additional to the $3,400,000 previously ordered) covering the period of seventeen months from October 21, 1951, to March 9, 1953, indicating that the expense of determining the actual refunds was an important factor in the disallowance. The Commission also pointed out in its order that its adjudication on tariff No. 12 filed by Duquesne on December 11, 1952, would in any event act as a terminal date for any refund questions relating to tariffs Nos. 10 and 11.
The Commission by its order of March 9, 1953, from which these appeals have been taken, has substantially complied with our opinion and order of remand. In its present order the Commission properly applied the law, and it has acted within its discretionary power on the facts before it.
We have recognized in this rate case the necessity and propriety of a cut-off date and of the use of a base year that the Commission may make an order that is final and appealable. Otherwise the process of rate making would have no finality. At the same time the Commission, in determining rates which are prospective, should consider the latest available relevant data. Admittedly the Commission is granted a wide area of discretion as to the extent and the type of adjustments to be made to base year figures. The mak
The Commission did not commit any reversible error in refusing to make the adjustments of the 1949 base year figures sought by Duquesne, or in limiting the evidence to be presented on remand- of the record by this Court.
We have reviewed the entire record, having due regard to our opinion and order in. the prior appeals, and we find no error of law in the present order of the Commission of March 9, 1953, which would require a remission of the record in this proceeding. The Commission corrected those errors of law contained in its order of August 29, 1951, and it complied with our direction for further consideration; its order is supported by substantial evidence, and it is not capricious, arbitrary, or unreasonable. The order of the Commission may be vacated or set aside only for “error of law or lack of evidence to support the finding, determination or order. . .” Section 1107 of Act of May 28, 1937, P. L. 1053, as amended, 66 PS §1437; Hostetter v. Pennsylvania Public Utility Commission, 160 Pa. Superior Ct. 94, 98, 49 A. 2d 862; Pittsburgh v. Pennsylvania Public Utility Commission, 165 Pa. Superior Ct. 519, 524,
The order of supersedeas issued by tliis Court on April 16, 1953, on petition of Duquesne Light Company, at No. 66, April Term, 1953, is terminated.
The order of the Commission is affirmed.
On August 24, 1953, the Commission ordered an additional suspension of tariff No. 12 for three months, or until December 1, 1953.