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Court Affirms Rate Increase
Publication year - 1996
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.1551-8833.1996.tb06634.x
Subject(s) - commission , state (computer science) , revenue , economics , appeal , business , law and economics , actuarial science , law , finance , political science , algorithm , computer science
Lincoln Utilities provides water service to customers in Merrillville, Indiana. In May 1994, the utility petitioned the state utility regulatory commission to increase its revenues by 19 percent. The utility presented evidence that the original cost of its property was $741,000 depreciated by $227,000 arriving at $514,000 at its current property value. The state consumer office introduced evidence that the utility's contributions in aid of construction totaled about $708,000 and subtracted this from the depreciated cost, resulting in a negative cost base. The consumer office recommended a 2.95 percent increase to the present rate to place the utility at a break‐even rate. The commission awarded the utility a 3.5 percent increase. The utility appealed. The commission's decision was upheld on appeal.