Opinion ID: 1538573
Heading Depth: 1
Heading Rank: 3

Heading: The Effect of the Statutory Framework

Text: Having thus exposed fundamental misconceptions of law embodied in the various actions taken by the Commission and New England during the spring and summer of 1975, we have achieved the appropriately sharp focus to enable us to discern with clarity the real thrust of New England's claim that the Commission erred in refusing to consider, as evidence, data derived from New England's operations after April 30, 1975. In refusing to consider such data, Commissioner Bradford told New England's counsel: I think it's the consensus of the Commission, Mr. McKusick, that April [1975] is as late as we're going to go, as in terms of the July 7th decree, April [1975] is the last month that we could conceivably have had. In fact, I think it's more likely that we would have had to stop with March [1975]. Consequently, we don't feel that in terms of what has been the goal throughout this proceeding of achieving a decree and a financial result in terms of a final order issued July 7th that athat the stopping of the figures effective April 30, [1975] is in any way either confiscatory or unfair and that is the Commission's decision on this point. It is plain from this statement that the Commission's mistake of lawin wrongly conceiving that it had authority to continue a Section 69 proceeding beyond the 9 month period during which a rate has the status of a proposed rate and in erroneously believing that it was still operating within the framework of the original Section 69 investigationsurely contributed to, if it did not dictate, the Commission's decision that it could not consider data which would not have been available to it during the suspension period (i. e., by July 7, 1975). Thus, in light of our conclusion that the proceeding commencing July 21, 1975 was, in legal effect, a new investigation pursuant to Section 296-Section 306, concerned with the justness and reasonableness of the $9,500,000 temporary effective rates, it becomes further plain, and we so decide, that the Commission committed error of law in excluding from this new proceeding data, appearingat least prima facieto be relevant and important evidence, on the basis of strictures pertaining to the appropriate conduct of a different proceeding, namely, the prior Section 69 investigation which had become terminated. Because the Commission thus committed error of law in refusing to consider the post-April 1975 data, we sustain New England's Section 303 appeal on this ground and vacate the Commission's order of February 13, 1976 in its entirety. We, therefore, need not concern ourselves with New England's other arguments ascribing error to the Commission for its failure to consider such data, and neither need we reach other claims of error asserted by New England as incident either to its Section 303 appeal or its Section 305 complaint. We remand the case to the Commission with directions that: (1) the Commission proceed with the further conduct of the new Section 296-Section 306 proceedings which had been commenced on July 21, 1975 as an investigation of the temporary rates put into effect on July 15, 1975; and (2) basing its conclusions on such evidence as would be probative and legally admissible in such new Section 296-Section 306 investigation, the Commission shall fix, and order substituted, by New England for the temporary rates presently in effect a permanent schedule of rates, tolls and charges which the Commission deems just and reasonable.