Opinion

Southwestern Bell Telephone Co. v. Public Utility Commission

  • 21 Tex. Sup. Ct. J. 545
  • 571 S.W.2d 503
  • 26 P.U.R.4th 61
  • 1978 Tex. LEXIS 391
  • 1978 WL 391818
Court
Texas Supreme Court
Filed
Jul 26, 1978
Status
Published
Author
Johnson
On the bench
Johnson, Chadick
Cited by
73 cases
Authority
More cited than 10.8%

approving trial court’s decision to determine utility’s request to stay the Commission's order based on the agency record, excluding new evidence on confiscation

How later courts described this case

  • approving trial court’s decision to determine utility’s request to stay the Commission's order based on the agency record, excluding new evidence on confiscation
  • Commission should consider nature and present usefulness of land held for future use *858 when determining inclusion in rate base
  • Commission should consider nature and present usefulness of land held for future use when determining inclusion in rate base
  • original cost less depreciation considered in determining "adjusted value of invested capital"

Written by the judges who cited it.

The opinion

SAM D. JOHNSON, Justice,

dissenting.

This dissent is respectfully submitted.

This writer dissents from that part of the majority opinion which holds that the blanket exclusion of all land held for future use does not amount to confiscation under this record. While acknowledging that the exclusion is error in calculating the rate base of a utility, the majority apparently agrees with the district court’s conclusion that the value of the land is so “infinitesimal” that it cannot amount to confiscation.

The record shows that the value of the land held for future use is approximately $1,136,000. This court held in General Telephone Company v. City of Wellington, 156 Tex. 238 , 294 S.W.2d 385 (1956), that “confiscation” and “unreasonable inadequacy” of rates are identical for purposes of constitutional protection. This writer cannot agree that because $1,136,000 is only a small fraction of the Telephone Company’s $3,000,000,000 rate base it is an “infinitesimal” amount or that its exclusion will result in an insignificant reduction of the rates to be collected by the Telephone Company.

This writer agrees with the court of civil appeals that no determination can be made as to whether any part of the land should be included in the rate base until a determination as to usefulness of each parcel of land is made. The trial court should be instructed to require the Commission to make these additional findings after considering the evidence in the Commission’s record as to each parcel of land. Such action is authorized by Section 19(d)(1) of the Administrative Procedure Act which provides that “[t]he court may require or permit subsequent corrections or additions to the record.”

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.