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Water Board Keeps Discretionary Power
The Denver (Colorado) Board of Water Commissioners (DBWC) and various water districts entered into numerous leases that granted the DBWC the discretion to occasionally modify its schedule of charges. The DBWC had the discretion to determine (both outside and inside Denver) rate structure, necessary plant, plant value, and expenses of operating, maintenance, and depreciation. In 1990 the DBWC changed to the split‐allocation method of allocating plant value, which presumed the historic investment method's allocation of the value of existing and new common facilities. However, the value of replacement of improvements to existing common facilities was allocated according to the current‐use method. In 1992, the DBWC further modified the split‐allocation method in a way that substantially increased the plant value allocated to outside customers an resulted in greater increases in charges to them. The trial court ruled against the distributors.
Water Board Keeps Discretionary Power
The Denver (Colorado) Board of Water Commissioners (DBWC) and various water districts entered into numerous leases that granted the DBWC the discretion to occasionally modify its schedule of charges. The DBWC had the discretion to determine (both outside and inside Denver) rate structure, necessary plant, plant value, and expenses of operating, maintenance, and depreciation. In 1990 the DBWC changed to the split‐allocation method of allocating plant value, which presumed the historic investment method's allocation of the value of existing and new common facilities. However, the value of replacement of improvements to existing common facilities was allocated according to the current‐use method. In 1992, the DBWC further modified the split‐allocation method in a way that substantially increased the plant value allocated to outside customers an resulted in greater increases in charges to them. The trial court ruled against the distributors.
Water Board Keeps Discretionary Power
1996-08-01
1 pages
Article (Journal)
Electronic Resource
English
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