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PUBLIC SERVICE COMMISSION v. CITIZENS TELEPHONE CO.

412 S.W.2d 880 (1966)

PUBLIC SERVICE COMMISSION of Kentucky, the Cities of Covington, Newport and Ludlow, Appellants, v. CITIZENS TELEPHONE COMPANY, Appellee.

Court of Appeals of Kentucky.

As Modified on Denial of Rehearing March 24, 1967.

As Amended March 30, 1967.

Attorney(s) appearing for the Case

Robert Matthews, Atty. Gen., J. Gardner Ashcraft, Asst. Atty. Gen., Frankfort, Donald C. Wintersheimer, City Sol., Covington, Lawrence Riedinger, Special Counsel, Newport, Joseph A. Boone, City Atty., Ludlow, William J. Wise, Robert B. Halloran, Newport, Charles Graham, Dayton, George Muehlenkamp, Newport, for appellants.

John J. O'Hara, O'Hara & Ruberg, Covington, Charles G. Puchta, Earl R. Huffman, Frost & Jacobs, Cincinnati, Ohio, for appellee.

CULLEN, Commissioner.

Citizens Telephone Company (hereinafter "Citizens") applied to the Kentucky Public Service Commission (hereinafter "PSC") for approval of a proposed increase of rates. PSC approved only part of the increase. Citizens appealed to the Franklin Circuit Court which found that the rate base fixed by the PSC was "unreasonably low" and that the rate of return allowed by PSC was so "unreasonably low" as to constitute a confiscation of property. The court...

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