Ponderosa Telephone Co. v. Public Utilities Commission

In this original proceeding, and the two companion proceedings (Happy Valley Telephone Co. v. Public Utilities Com. (July 5, 2011, F061259) [nonpub. opn.]; Calaveras Telephone Co. v. Public Utilities Com. (July 5, 2011, F061306) [nonpub. opn.]), 11 rural telephone companies challenge California's Public Utilities Commission (Commission) decision No. 10-06-029, as modified by decision No. 10-10-036 (Decision). The Decision allocates the proceeds from the redemption of Rural Telephone Bank (RTB) stock to the telephone companies’ ratepayers. The subject stock was issued by the RTB in one of two ways. First, as a condition of receiving a loan from the RTB, a rural telephone company was required to purchase an amount of stock equal to 5 percent of the loan proceeds. Second, if the total interest received by the RTB from its borrowers exceeded its expenses and reserve requirements, the RTB issued patronage refunds to the rural telephone companies in the form of additional shares of stock. When the RTB was dissolved, this stock was redeemed for par value. This court issued a writ of review to consider the Decision.

Petitioner, The Ponderosa Telephone Co. (Ponderosa), contends…