Opinion
No. 34769
Decided November 21, 1956.
Public Utilities Commission — Gas rates — Application for increase — Rate fixing a legislative function — Delegation to commission with standards for guidance — Commission's orders not interfered with by courts, when.
APPEAL from the Public Utilities Commission.
The Manufacturers Light Heat Company, a natural gas company of Pennsylvania doing business in Ohio, filed an application with the Public Utilities Commission of Ohio for authority to increase the rates charged by it for natural gas sold in Ohio. It later filed with the commission an appeal from a rate ordinance enacted by the city of Martins Ferry. The two proceedings were consolidated for hearing and decided by separate orders.
As to the first proceeding, the commission found the value of Manufacturers' rate base, that the rates being charged do not yield an adequate return, that the rates proposed by Manufacturers are not justified, and that it is entitled to a specified return on its rate base; and ordered it to file an adjusted tariff schedule which will provide additional gross revenue sufficient to produce a specified annual return.
In the Martins Ferry proceeding, the commission found the value of the rate base, that the rates proposed by the city ordinance are unjust and unreasonable, that the rates proposed by Manufacturers are not justified, and that it is entitled to a named rate of return; and ordered it to file an adjusted tariff schedule which will provide additional gross revenue sufficient to provide a specified annual return.
Manufacturers filed tariff schedules in compliance with the commission's orders, which schedules the commission approved and made effective.
An appeal from the commission's orders brings the causes to this court for review.
Mr. Thomas C. Committe, for appellants.
Mr. C. William O'Neill, attorney general, Mr. Ralph N. Mahaffey and Mr. Paul E. Tague, Jr., for appellee Public Utilities Commission.
Mr. Albert M. Calland, Mr. Edward B. Calland and Mr. Harry A. Kramer, for appellee The Manufacturers Light Heat Company.
The sole issue before this court as stated by appellants is whether the commission "has exercised proper judgment" within the scope of Section 4909.15, Revised Code, so as to fix rates that are not unreasonable, if not confiscatory, to the industrial consumers served by Manufacturers.
Rate fixing is a legislative function and as regards service such as is furnished by Manufacturers has been delegated to the Public Utilities Commission.
That the commission acted in accordance with the applicable statutory provisions is not questioned. The commission, after finding the rates being charged are inadequate, approved schedules representing its own judgment based on evidence before it and an exercise of its sound discretion.
The orders of the commission are affirmed on authority of Citizens Gas Users Assn. v. Public Utilities Commission, ante, 536.
Orders affirmed.
WEYGANDT, C.J., MATTHIAS, HART, ZIMMERMAN, STEWART, BELL and TAFT, JJ., concur.