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CITY OF LOS ANGELES v. PUBLIC UTILITIES COM.

Docket Nos. S.F. 23215, 23237, 23257.

15 Cal.3d 680 (1975)

542 P.2d 1371

125 Cal. Rptr. 779

CITY OF LOS ANGELES et al., Petitioners, v. PUBLIC UTILITIES COMMISSION et al., Respondents; PACIFIC TELEPHONE AND TELEGRAPH COMPANY, Real Party in Interest. CITY OF LOS ANGELES et al., Petitioners, v. PUBLIC UTILITIES COMMISSION et al., Respondents; GENERAL TELEPHONE COMPANY OF CALIFORNIA, Real Party in Interest.

Supreme Court of California. In Bank.

December 12, 1975.

Attorney(s) appearing for the Case

COUNSEL

Burt Pines, City Attorney (Los Angeles), Leonard L. Snaider, Deputy City Attorney, Leonard Putnam, City Attorney (Long Beach), Robert E. Shannon, Deputy City Attorney, John Witt, City Attorney (San Diego), Robert J. Logan and William S. Shaffran, Deputy City Attorneys, Thomas O'Connor, City Attorney (City and County of San Francisco), and Milton H. Mares, Deputy City Attorney, for Petitioners.

Richard D. Gravelle, J. Calvin Simpson and Andrew J. Skaff for Respondents.

Albert M. Hart, H. Ralph Snyder, Jr., O'Melveny & Myers, Allyn O. Kreps, Edward D. Burmeister, Jr., Steven C. Babb, James A. DeBois, William R. Roche, Pillsbury, Madison & Sutro, Noble K. Gregory, Richard W. Odgers, James B. Young and Francis Kirkham for Real Parties in Interest.

OPINION

TOBRINER, J.

In these three telephone rate cases the Public Utilities Commission determined, inter alia, that it lacked legal authority to approve tariffs which would annually adjust telephone rates to take account of changing federal tax expenses. As a consequence, the commission found itself compelled to set a rate which, in its own words, would "create a windfall for [the telephone companies] to the detriment of the ratepayers...

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