In re Tariff Filing of New England Telephone & Telegraph Co.

The Department of Public Service (Department) appeals an order of the Public Service Board (Board) issued September 21, 1984 granting a $3,253,000 rate increase to New England Telephone & Telegraph Company (NET). The Department contends that the procedure followed by the Board in granting the rate increase constituted selective updating, a forbidden ratemaking procedure. We agree, and accordingly reverse.

On May 18, 1984 NET filed a request with the Board to increase rates by $3,253,000, based solely on certain changes it proposed to implement in its depreciation schedules. The proposed…