General Telephone Co. v. Public Utilities Commission

The central issue presented is whether the commission erred in determining that a 7.14 percent rate of return was fair and reasonable. Specifically, appellant contends that the methods used to arrive at this-rate were improper.

In finding that a 7.14 percent rate of return was allowable, the commission noted the recommendations of the witnesses, but found further analysis of their positions to be unnecessary. Instead, it relied primarily on the. fact that appellant had previously been granted a rate increase for its service areas which had resulted in a 7.14 percent rate of return. General…