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Original Cost Not Synonymous With Value
Publication year - 1992
Publication title -
journal ‐ american water works association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.466
H-Index - 74
eISSN - 1551-8833
pISSN - 0003-150X
DOI - 10.1002/j.1551-8833.1992.tb07404.x
Subject(s) - base (topology) , value (mathematics) , state (computer science) , law , law and economics , political science , business , economics , mathematics , statistics , mathematical analysis , algorithm
In 1968, the Reno‐Stead Development Company filed three $25 applications for water rights with the state engineer in December 1968. The water rights were perfected and in 1980 were transferred to the Silver Lake Water Distribution Company. In August 1980, Silver Lake recorded $732,000 to represent the value of the water rights. The PSC investigated the rates charged by Silver Lake in 1986, determined its rate base was inflated, and fixed $75–the $25 paid with each application–as the original cost. The court said that the that the PSC had reason to fix 1968 as the date that the rights were dedicated to public use. Further the court said that PSC must base its decisions on data, not assumptions.