Opinion ID: 1297749
Heading Depth: 1
Heading Rank: 19

Heading: Petition of the Independents.

Text: As already noted, the independent telephone companies in California through their trade association also challenge the commission's decision herein. In addition to supporting Pacific's attacks on the reduction in its rates and on the refund order, the independents contend that By the device of a partial submission the commission has deprived them of an opportunity to present evidence to the commission illustrating the drastic loss of income which will result to them as a result of reduction of Pacific's rates. It appears that the independents provide both long distance or toll service and local or exchange service through their own lines and also through interconnection with the lines of Pacific. Service which utilizes the lines of both Pacific and the independents is commonly referred to as interchanged traffic. Pacific and the independents have from time to time separately entered into written agreements covering the division of revenues derived from interchanged traffic, more commonly designated as settlement agreements. In this review proceeding the independents express dissatisfaction with results of their negotiations with Pacific for revised methods of settlement and state that such negotiations are presently at an impasse. They are also fearful that the reduction in the rates of Pacific will mean a possible commission order to reduce their own rates, before they have been afforded a hearing by the commission. [17] Suffice it to say that the provisions of sections 1705 and 728 (see also § 766) [18] and the views expressed in this opinion should serve to reassure the independents to the contrary. The commission is cautioned accordingly.