United States Supreme Court Cases & Opinions

U.S. Supreme Court

West Ohio Gas Co. v. Public Utilities Commission , 294 U.S. 79 (1935)

West Ohio Gas Co. v. Public Utilities Commission of Ohio (No. 2)

No. 213

Submitted December 7, 1934

Decided January 7, 1935

294 U.S. 79

Syllabus

1. In fixing the rates of a public utility for a series of past years, it is contrary to due process to adopt the gross income and operating expenses of the first year as an exclusive standard or test for the period, and to ignore unimpeached evidence of the gross income and operating expenses of later years. To prefer forecast to experience in such cases is arbitrary. P. 294 U. S. 81.

2. A prediction, mere guesswork, that lower rates prescribed for a public utility will ultimately increase its profits by increasing its business cannot atone for present confiscation. P. 294 U. S. 82.

3. Other questions presented in this case are disposed of by the opinion in the case preceding.

128 Ohio St. 301, 191 N.E. 105, reversed.

Appeal from a judgment affirming an order of the Public Utilities Commission which fixed rates of the Gas Company in the City of Kenton, Ohio. See ante, p. 294 U. S. 63.

Page 294 U. S. 80