Kittanning Telephone Co. v. Public Service Commission

Citations

• 77 Pa. Super. 86
• 1921 Pa. Super. LEXIS 214

Syllabus

<p>Public Service Commission — Public Service Company Law— . Telephone companies — Bates—Increase—Unreasonable increase— Evidence.</p> <p>On. a complaint against an increased schedule of rates filed by a telephone company 'with the Public Service Commission, a valuation for rate-making purposes is not always necessary to establish the right to such increase. On proper showing, an increased rate may be justified by evidence of such increase in the cost and expense of rendering the service as will satisfy the Public Service Commission and the court that the new rate is reasonable in the circumstance, but tbe necessary elements for sucb comparison must appear.</p> <p>On tbe application of a telephone company to increase its rates, based largely upon tbe rising cost of maintenance and operation, tbe book cost of tbe company was submitted to show its valuation for rate-making purposes and it was sought to justify tbe increased rates by the increased cost in operation and maintenance. On a valuation based on tbe book cost it appeared that tbe company bad available for dividends at the old rates about seven per cent on the book cost in 1917, eight per cent in 1918, and in 1919 almost six per cent. Tbe decrease in the amount available for 1919 could be accounted for by expenses incurred in changing pole lines, etc., which could not be properly charged to operating expenses. Under sucb circumstances, tbe Public Service Commission properly held that tbe increased rates were unjust and unreasonable and an order sustaining tbe complaints will be affirmed.</p>