Opinion ID: 388054
Heading Depth: 2
Heading Rank: 3

Heading: Past Rate Levels for Private Line Services

Text: 51 With respect to the rate levels for the private line service categories (other than TELPAK) the Commission, in its Final Decision, declared that: Past levels of return for these services have generally been unlawfully low, although in some years the level of return for some services could be considered to have approached the zone of reasonableness. 61 F.C.C.2d at 652. Because the Commission reached this conclusion solely on the basis of the retroactive application of its newly-established FDC standard 19 without also (1) considering the non-cost factors which it takes into account, in determining the reasonableness of rate levels, or (2) explaining its failure to consider these factors, this action must be vacated and this issue remanded to the Commission for further consideration. Reasoned decisionmaking is again absent. See Greater Boston Television Corp. v. FCC, supra, 143 U.S.App.D.C. at 393-94, 444 F.2d at 851-52. To illustrate our conclusion, we point out the following: the Commission found that the return level for television program transmission service had been unlawfully low since 1971 20 without considering (1) its own requirement of reduced rates for educational television transmission; 21 (2) its own refusal to accept tariff filings during 1972-73 increasing commercial television rates; 22 and (3) its own sanction in 1973 of a stipulation freezing television rates for at least a two-year period. 23 Likewise, the Commission's finding that the rate level for the audio/radio program transmission category was too low in the 1967-75 period (61 F.C.C.2d at 651-52) does not take into consideration the stipulation, approved by the Administrative Law Judge in Docket 18128, preventing rate changes in that category for at least two years. FCC 70M-941 (1970) (J.A. 344). And it fails to factor in the Commission's requirement that reduced rates for radio transmission service be offered to the Corporation for Public Broadcasting and National Public Radio. See, e. g., 31 F.C.C.2d 496 (1971). 24 52 Consequently, this portion of the Commission's decision is vacated and the issue is remanded for further consideration.