General Telephone Co. v. Public Utilities Commission

I

In March 1981 General Telephone Company of California (General) filed an application with the Public Utilities Commission (commission) seeking authority to increase certain intrastate rates and charges. The commission, in turn, issued an “Order Instituting Investigation” (Oil) into various phases of General’s operations, including the quality of its service. Public hearings were held between April and October 1981. Evidence concerning the quality of service by General was received in the form of consumer surveys, petitions, responses to service questionnaires and public witness testimony. The hearings eventually resulted in a decision (82-04-028), later amended (82-07-117). In its decision the commission made certain findings justifying a partial grant of the rate increase sought. It also found, however, that while General had met the objectives of a previous directive, “General’s service is still inadequate.” The commission found that “General should replace its present practice regarding the purchase and supply of switching equipment with nonbiased competitive bid solicitation and evaluation practices.” In particular it found that “General should adopt a competitive…