Court Opinion

ID: 9846110
Source: CourtListenerOpinion
Date Created: 2023-09-24 03:34:48.348001+00
Date Added: 2024-06-11T09:16:33.449836
License: Public Domain

MR. JUSTICE BOTTOMLY
(dissenting).
Here we have an application by plaintiff corporation, before the Public Service Commission for an increase in its rates and charges. A public hearing was held and a number of corpora*117tions, associations, individuals and labor organizations appeared as protestants of such increases. It is apparent from the record that the Commission granted the increased rates entirely on the evidence submitted by the corporation, as very little evidence was introduced by the protestants. However, the Commission granted in full the schedule of maximum increased rates requested by the Montana Power Company.
The protestants in such cases generally as here are not in a position or able financially or otherwise to go into all the technical questions necessary to bring before the Commission the facts as to exactly what constitutes a reasonable, just and fair rate under existing conditions. Neither should they be expected nor required to do so, especially where the people of Montana have through their Legislature, provided for a Public Service Commission which is maintained at public expense and which should fairly represent the public interest and stamd between the public and the utility, and upon which the duty, power and authority is granted and imposed when determining and allowing reasonable rates to be charged by the monopoly, to see to it that such rates be fair and just both to the public and the monopoly. This is the only justification for the public maintaining a Public Service Commission.
R.C.M. 1947, section 70-101, created the Commission.
R.C.M. 1947, section 70-103, invests it with full power of supervision, regulation, and control of the utility.
R.C.M. 1947, section 70-105, provides that every unjust and unreasonable charge by the utility is prohibited and declared unlawful. The rate increase granted in the instant cause is therefore contrary to the public policy of the State of Montana.
R.C.M. 1947, section 70-106, grants to the Commission the power and authority to investigate and ascertain the value of the property of every public utility used for the convenience of the public. Also granted to the Commission are broad powers in the use of all information contained in assessment rolls, public records of the branches of state government, including the public records Of the State Board of Equalization, and any *118other information obtainable and the Commission may at any time of. its own initiative make a revaluation of such utility’s properties. ■ .
R.C.M. 1947, 70-109, grants authority to the Commission to examine the books, accounts, records and papers of any public utility.
R.C.M. 1947, section 70-121, provides that if, upon due investigation and hearing, the Commission finds that the rates, tolls, charges, schedules, or. joint rates be unjust, unreasonable, or unjustly discriminatory, or to be preferential or otherwise in violation of the provisions of R.C.M. 1947, Title 70, chapter 1, the Commission shall have the power to fix and order substituted therefor, such rate or rates, tolls, charges or schedules, as shall be just and reasonable.
The Commission in expressing its power of regulating rates of a utility corporation must itself make its due investigation and appraise the value of the utility’s properties, determine for itself the costs of operation, allow for depreciation, and designate a rate or rates that allow a fair return on the actual bona fide investment.
It is the duty of the Commission to limit and regulate the use of the property, so far as profit and quality of service rendered is concerned.
When the Commission simply sits as an automaton, without exercising its own initiative in determining all these factors by and through its own engineers, examiners, experts, accountants and other assistants provided for the Commission by R.C.M. 1947, section 70-118, and simply takes the testimony of the utility on such matters and questions, the Commission is not, in my opinion, fulfilling its duties and responsibilities to the public under the law of its creation.
By reading the whole of Title 70, Public Utilities, chapter 1, R.C.M. 1947, it seems clear that the intent of the Legislature was that the State Public Service Commission would, through its own agents, make full disclosure of all matters under consideration, so that the members of the Commission could then *119check and weigh the facts developed by its own dne investigation as against the evidence produced before it by a utility.
It appearing that the Public Service Commission failed and omitted to make any independent investigation herein as is provided for and required by the above statutes, I would reverse the judgment and send the matter back to the Commission to enable it to fully perform the duties so imposed upon it and thus allow it to make its own investigation and determination of the facts and circumstances before approving or allowing any rate increase whatever.