Opinion ID: 1297749
Heading Depth: 1
Heading Rank: 8

Heading: License Fees Paid to American.

Text: [25] In the test year Pacific paid to American and claimed as expenses $8,060,000 in intrastate license fees, computed as one per cent of certain revenues. The commission disallowed $570,000 of this amount as being costs related to American's investor interest functions which should not be borne by California ratepayers. Again this approach follows commission precedent in previous rate proceedings involving Pacific, and the point is treated in detail (including extensive findings) in the decision now under review. Pacific concedes that the legal principle is the same in essence as with respect to the purchases from Western Electric Company. No error by the commission appears. Southern Bell Tel. & Tel. Co. v. Georgia Public Service Com. (1948) 203 Ga. 832 [49 S.E.2d 38, 63], cited by Pacific, is not persuasive to the contrary; there the commission appears to have disallowed in total the license payments made to American, rather than, as here, only some 7 per cent thereof.