Pacific Gas & Electric Co. v. Railroad Commission

Plaintiff sues in equity, seeking to restrain the enforcement of an order of the Railroad Commission, issued on November 13, 1933, directing plaintiff to reduce its gas rates applicable to its natural gas service. The rates, fixed by the commission upon proceedings instituted upon its motion, are assailed as confiscatory.

Upon its bill of complaint and affidavits, plaintiff moves for an interlocutory injunction. Defendants, in opposition thereto, file a verified answer and affidavits.

In its decision, the commission found, as stated in its brief, “that the fair rate base applicable to the plaintiff’s gas properties for the purpose of testing the rates for the future was $105,000,000. A net return of $7,000,000 (approximately 6% per cent) on said rate base was found to be a reasonable return.” And it further states in its brief that “the order reduced the gross revenues of the company by $2,100,000, and its net revenues by $1,648,238; that the net revenue available under the new rates would be $7,-096,643 or 6.76 per cent return on the $105,-000,000 rate base. This projected net return under the new rates is before making any allowance for increased revenues resulting from the…