Legal Definitions - filed-rate doctrine

The filed-rate doctrine is a legal principle that requires certain regulated companies, particularly those providing essential services like transportation or utilities, to charge only the rates that have been officially submitted ("filed") and approved by the relevant government regulatory agency. This doctrine prevents these companies from charging different rates to different customers for the same service, ensuring fairness and preventing discrimination. It also means customers cannot negotiate a different price than the one on file, and the company cannot offer unapproved discounts or premiums.

• Example 1: Electricity Provider

  Imagine a local electricity company that has filed its rates for residential and commercial customers with the state's public utility commission. A homeowner, facing financial hardship, approaches the company asking for a special, lower monthly rate on their electricity bill.

  How it illustrates the doctrine: Under the filed-rate doctrine, the electricity company is legally obligated to charge the homeowner the standard residential rate that has been officially approved and filed. It cannot offer a personalized discount or a different rate, even out of goodwill, because doing so would deviate from its filed rates. To change its rates, the company would first need to submit a new rate schedule to the commission for approval.

• Example 2: Interstate Freight Shipping

  Consider a large trucking company that transports goods for businesses across state lines. This company has its freight rates for various types of cargo and distances officially filed with a federal transportation regulatory body. A new manufacturing client approaches the trucking company, requesting a significant discount on shipping costs for a large, ongoing contract, arguing that their volume justifies a special rate.

  How it illustrates the doctrine: The filed-rate doctrine dictates that the trucking company must charge the new client the rates that are officially on file with the federal agency for that specific type of service. It cannot offer a special, unfiled discount to secure the business, even for a high-volume client. This ensures that all shippers are treated equally and prevents the trucking company from selectively favoring certain customers over others.

• Example 3: Regional Passenger Rail Service

  A regional passenger rail service operates routes between several cities, and its ticket prices for different classes of service (e.g., economy, business) are filed with a state transportation authority. A group of tourists wants to book an entire train car for a private, customized tour along a scenic route and offers to pay a premium price, significantly higher than the standard per-seat fare, to secure this exclusive service.

  How it illustrates the doctrine: Even though the tourists are willing to pay more, if the rail service's rates for private car rentals or special charters are subject to the filed-rate doctrine, the company can only charge the rate that has been officially submitted and approved by the regulatory body for such services. It cannot charge an arbitrary premium, nor can it offer a discount, without first amending its filed rates through the proper regulatory process. This ensures transparency and prevents arbitrary pricing for specialized services.