Opinion ID: 2603822
Heading Depth: 1
Heading Rank: 5

Heading: Disallowance by PUC of Toll Repression

Text: Repression is the word used to describe a reduction in revenue due to increase in charges. Mountain Bell contended before the PUC that when the increase in rates becomes effective, there will be a periodic drop in the use of the telephone for toll calls because of the higher charges. On this basis, Mountain Bell maintained that the projected revenue from the repricing of toll services should be adjusted downward. The only evidence which Mountain Bell introduced in support of toll repression was based on a computer demand model. During the course of the hearings, one of the PUC commissioners questioned a PUC staff witness who described the computer demand model presented as follows: Basically in this case, sir, it is a computer program into which you can put certain data. That data is manipulated and it comes out with the certain output information. In this case what you do is you put in a hypothetical rate structure and this model will then tell you, based on certain pieces of information like the business activity index and the Consumers Price Index, things like this, it will predict whathow many fewer toll calls will be made. No evidence was presented that toll repression, if any, occurred as the result of previous increases. The PUC declined to allow any repression allowance. Mountain Bell argues that this was totally arbitrary and capricious and requests this court to order the PUC to amend its decision to allow for toll repression. It appears obvious from the record that the PUC was not persuaded by the computer evidence. Mountain Bell contended that since no evidence contesting its computer evidence was presented, the PUC must accept it. We reject this contention. If in the judgment of the PUC evidence is insufficient to establish that a particular result will occur, it is within its prerogative to decline to find that such a result will occur. Furthermore, the record reveals that PUC commissioners questioned a witness as to whether repression had ever occurred as the result of prior toll rate increases. The answers indicated that no information regarding this had been obtained. From this, the PUC could properly infer that since no proof of past repression was offered, it was unlikely that it would occur as the result of the rate increase sought to be authorized. We find nothing in the record to justify reversing the PUC's ruling which rejected any allowance for toll repression. Judgment affirmed. PRINGLE, C. J., and KELLEY, J., do not participate.