Affirmed. Plaintiffs, rural, privately-owned telephone companies, brought suit against Defendant, California Public Utilities Commission, challenging the PUC’s decision establishing “cost of capital” as component in rate making. Plaintiff argued Defendant failed to adequately consider circumstances for rural telephone companies and that the PUC decision was unconstitutional. Appeals court held Plaintiff failed to demonstrate that the PUC decision was arbitrary, capricious, lacking in evidentiary support, or fell short of constitutional standards.