A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Denial of Increase Deemed Punitive
In 1994, White Cypress Lakes Water Inc. applied to the Mississippi Public Service Commission (MPSC) to increase the base monthly rate of White Cypress Lakes residents from $9.50 to $20. The $9.50 monthly base rate had not been increased in five years. The MPSC staff conducted a routine investigation and recommended an increase of $4.50 per month. The MPSC conducted a hearing and concluded that the utility was providing poor service to its customers. As a result, the MPSC denied any rate increase. The trial court affirmed the MPSC. The appellate court noted that experts had clearly testified that the base rate of $9.50 resulted in ongoing losses to the utility. According to the court, the utility must at a minimum receive enough to enable it to render efficient and continuous service. Furthermore, the court said, the utility is entitled to a fair rate of return for its services. The court concluded that the MPSC's decision was not supported by substantial evidence, and it appeared that the denial of the rate was punitive. Thus, the court reversed the decision and returned the case to the MPSC for further consideration.
Denial of Increase Deemed Punitive
In 1994, White Cypress Lakes Water Inc. applied to the Mississippi Public Service Commission (MPSC) to increase the base monthly rate of White Cypress Lakes residents from $9.50 to $20. The $9.50 monthly base rate had not been increased in five years. The MPSC staff conducted a routine investigation and recommended an increase of $4.50 per month. The MPSC conducted a hearing and concluded that the utility was providing poor service to its customers. As a result, the MPSC denied any rate increase. The trial court affirmed the MPSC. The appellate court noted that experts had clearly testified that the base rate of $9.50 resulted in ongoing losses to the utility. According to the court, the utility must at a minimum receive enough to enable it to render efficient and continuous service. Furthermore, the court said, the utility is entitled to a fair rate of return for its services. The court concluded that the MPSC's decision was not supported by substantial evidence, and it appeared that the denial of the rate was punitive. Thus, the court reversed the decision and returned the case to the MPSC for further consideration.
Denial of Increase Deemed Punitive
1998-07-01
1 pages
Article (Journal)
Electronic Resource
English
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