N.Y. Public Service Law § 97: Rates, rentals and service

§ 97. Rates, rentals and service. 1. Whenever the commission shall be

of opinion, after a hearing, had upon its own motion or upon a complaint

that the rates, charges, tolls or rentals demanded, exacted, charged or

collected by any telegraph corporation or telephone corporation subject

to its jurisdiction for the transaction of messages or communications by

telegraph or telephone or for the rental or use of any telegraph line,

telephone line or any telegraph instrument, wire, appliances, apparatus

or device or any telephone receiver, transmitter, instrument, wire,

cable, apparatus, conduit, machine, appliance or device or any telephone

extension or extention system or that the rules, regulations or

practices of any telegraph corporation or telephone corporation

affecting such rates, charges, rentals or service are unjust,

unreasonable or unjustly discriminatory or unduly preferential or in

anywise in violation of law, or that the maximum rates, charges or

rentals chargeable by any such telegraph corporation or telephone

corporation are insufficient to yield reasonable compensation for the

service rendered, the commission shall, with due regard, among other

things, to a reasonable average return upon the value of the property

actually used in the public service and to the necessity of making

reservation out of income for surplus and contingencies, determine the

just and reasonable rates, charges and rentals to be thereafter observed

and in force as the maximum to be charged, demanded, exacted or

collected for the performance or rendering of the service specified

notwithstanding that a higher or lower rate, charge or rental has been

theretofore prescribed by general or special statute, contract, grant,

franchise condition, consent or other agreement and shall fix the same

by order to be served upon all telegraph corporations and telephone

corporations by which such rates, charges or rentals are thereafter to

be observed, and thereafter no increase in any rate, charge or rental so

fixed shall be made without the consent of the commission. Any such

change in rate, charge or rental shall be upon such terms, conditions or

safeguards as the commission may prescribe. At any hearing involving a

rate, charge or rental, the burden of proof to show that the change in

the rate, charge or rental, if proposed by the person or corporation

operating the utility, or that the existing rate, if on motion of the

commission or in a complaint filed with the commission it is proposed to

reduce the rate, charge or rental, is just and reasonable, shall be upon

the person or corporation operating such utility; and the commission may

give to the hearing and decision of such question preference over all

other questions pending before it and decide the same as speedily as

possible. If it shall be made to appear to the satisfaction of the

commission that the public interest requires a change in the rate,

charge or rental for telephone or telegraph service charged by any such

person or corporation, or that such change is necessary for the purpose

of providing adequate or sufficient service or for the preservation of

the property, the commission may, upon such terms, conditions or

safeguards as it deems proper, authorize an immediate, reasonable,

temporary increase or decrease in such rate, charge or rental pending a

final determination of the rate, charge or rental to be thereafter

demanded, exacted or collected by such person or corporation. The terms,

conditions or safeguards prescribed may include conditions for the

purposes for which additional revenue derived from any such temporary

increase may be expended and for the impounding thereof until the same

shall be applied to the purpose so specified.

2. Whenever the commission shall be of the opinion, after a hearing

had upon its own motion or upon complaint that the rules, regulations or

practices of any telegraph corporation or telephone corporation are

unjust or unreasonable or that the equipment or service of any telegraph

corporation or telephone corporation is inadequate, inefficient,

improper or insufficient, the commission shall determine the just,

reasonable, adequate, efficient and proper regulations, practices,

equipment and service thereafter to be installed, to be observed and

used, and to fix and prescribe the same by order to be served upon every

telegraph corporation and telephone corporation to be bound thereby and

thereafter it shall be the duty of every telegraph corporation and

telephone corporation to which such order is directed to obey each and

every such order so served upon it and to do everything necessary or

proper in order to secure compliance with and observance of every such

order by all its officers, agents and employees according to its true

intent and meaning. Nothing contained in this chapter shall be construed

as giving to the commission power to make any order, direction or

requirement requiring any telegraph corporation or telephone corporation

to perform any act which is unjust or unreasonable or in violation of

any law of this state or of the United States not inconsistent with the

provisions of this chapter.

3. The commission shall have power by order to require any two or more

telegraph corporations or any two or more telephone corporations whose

lines form a continuous line of communication, or could be made to do so

by the construction and maintenance of suitable connections or transfer

of messages at common points, between different localities which are not

reached by the line of either company alone, to establish through lines

within the state between two or more such localities and joint rates or

charges for service by or over said lines as the commission may by its

order prescribe and in case such through lines and joint rates be not

established by the corporations named in any such order within the time

therein specified, the commission shall have power by order to establish

the same and to fix the just and reasonable rates and charges to be

charged for such through service and to declare the portion thereof to

which each of the corporations affected thereby shall be entitled and

the manner in which the same shall be secured and paid.