In the Matter of Rochester Telephone Corporation et al., Appellants,
v.
Public Service Commission of the State of New York et al., Respondents.
Court of Appeals of the State of New York.https://leagle.com/images/logo.png
Argued September 21, 1995
Decided October 31, 1995.
Attorney(s) appearing for the Case
Michael J. Shortley, III, Rochester, Helen A. Zamboni and Nixon, Hargrave, Devans & Doyle (Michael T. Tomaino of counsel), for Rochester Telephone Corporation, appellant; Davis Polk & Wardwell, New York City (Guy Miller Struve of counsel), Patrick A. Lee and Jerome M. Balsam for New York Telephone Company, appellant; Cullen and Dykman, Brooklyn (Steven L. Zelkowitz, Peter M. Metzger and Deborah M. Franco of counsel), for Brooklyn Union Gas Company and another, appellants; Gould & Wilkie, New York City (Walter A. Bossert, Jr., and Peter V. K. Funk, Jr., of counsel), for Central Hudson Gas & Electric Corporation, appellant; Edwin W. Scott, New York City, Marc Richter and Henri M. Gueron for Consolidated Edison Company of New York, Inc., appellant; Ronald J. Tanski, Buffalo, for National Fuel Gas Distribution Corporation, appellant; Huber Lawrence & Abell, New York City (Frank J. Miller of counsel), for New York State Electric & Gas Corporation and others, appellants; Thomas J. O'Neill, Syracuse, and Matthew J. Picardi for Niagara Mohawk Power Corporation, appellant; Philip P. Steptoe, Pearl River, for Orange and Rockland Utilities, Inc., appellant; and Jeffrey R. Clark, Rochester, for Rochester Gas and Electric Corporation, appellant.
Lawrence G. Malone, Albany, Maureen O. Helmer and Carl F. Patka for Public Service Commission, respondent.
Joel Blau, Albany, and Victoria Ramundo for New York State Consumer Protection Board, respondent.
Cullen & Dykman, Brooklyn (Steven L. Zelkowitz, Peter M. Metzger and Deborah M. Franco of counsel), for American Gas Association and others, amici curiae.
Chief Judge KAYE and Judges SIMONS, TITONE, BELLACOSA and CIPARICK concur; Judge LEVINE taking no part.
Court of Appeals of the State of New York.
SMITH, J.
In July 1993, the Public Service Commission (PSC) reduced the permissible utility rate Rochester Telephone Corporation (RTC) could charge its ratepayers by imputing revenue to RTC in the form of a 2% royalty arising out of improper cost-shifting and uncompensated transfers of RTC's intangible assets between RTC and its subsidiaries and affiliates. PSC also created...
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