Borough of Lansdowne v. Public Service Commission

Citations

• 74 Pa. Super. 203
• 1920 Pa. Super. LEXIS 122

Syllabus

<p>Public service companies — Water companies — Boroughs—First-class townships — Fire protection rates — .Reasonableness.</p> <p>1. Under the procedure before the Public Service Commission it is not necessary that boroughs, affected by an increase of rates of water companies doing business therein, should have special notice of complaints made to the increased rate. The rights of all parties are fully protected by the provisions of article VI, section 14, of the Public Service Company Law authorizing a rehearing, or by permitting parties interested to file complaints as to the new rates ordered by the commission, and to present their ease as to the alleged unfairness, injustice and unreasonableness of the schedule complained of.</p> <p>2. The amount to be paid by a municipality for fire protection should be based on the cost of the plant devoted to public fire protection, in connection with its fair share of the cost of maintenance, operation and depreciation. Where the same pumps, reservoirs and mains are used for both domestic consumption and fire protection, the problem confronting the commission is to apportion the cost of the plant between the two services, for in order to afford adequate fire protection, the pumps, reservoirs, mains, etc., are necessarily larger than would be required for domestic use alone. Just how the apportionment should be made is- a scientific not a legal question.</p> <p>3. The determination by the Public Service Commission that approximately 75 per cent of the total investment in a water company’s plant was properly apportionable to domestic and industrial service, and approximately 25 per cent to fire service; and that 9.6 per cent of the company’s operating expenses were applicable to fire protection, and apportioning $180,130, or practically 20 per cent of the company’s gross revenues, to be derived from fire protection service, is reasonable and in conformity with law, and will not be disturbed on appeal.</p> <p>4. The order of the