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Deferred Anticipated Charges Removed From Revenue Increase
In 1993 Carolina Water Service Inc. sought an increase in various fees. The total requested revenue increase was $804,492. In 1994, the PSC granted an increase of $664,542. In arriving at its decision, the PSC adjusted test‐year expenses by allowing certain deferred charges for expenses actually incurred before the test year. These charges included expenses such as tank maintenance and press‐washing of sewer mains that were incurred between 1988 and 1993. The consumer advocate petitioned for review based on several grounds, one of which was that these expenses did not qualify for an exception to retroactive treatment. The appellate court agreed with the consumer advocate. According to the court, the expenses for painting tanks and repairing mains were routine and required at regular intervals. “They therefore do not qualify as extraordinary because they are not unanticipated or nonrecurring,” the court said. Thus, the court said that the PSC improperly allowed a retroactive rather than a prospective recovery of these deferred charges. The court returned the case to the PSC to remove from the ratebase calculation deferred charges that were not unanticipated and nonrecurring.
Deferred Anticipated Charges Removed From Revenue Increase
In 1993 Carolina Water Service Inc. sought an increase in various fees. The total requested revenue increase was $804,492. In 1994, the PSC granted an increase of $664,542. In arriving at its decision, the PSC adjusted test‐year expenses by allowing certain deferred charges for expenses actually incurred before the test year. These charges included expenses such as tank maintenance and press‐washing of sewer mains that were incurred between 1988 and 1993. The consumer advocate petitioned for review based on several grounds, one of which was that these expenses did not qualify for an exception to retroactive treatment. The appellate court agreed with the consumer advocate. According to the court, the expenses for painting tanks and repairing mains were routine and required at regular intervals. “They therefore do not qualify as extraordinary because they are not unanticipated or nonrecurring,” the court said. Thus, the court said that the PSC improperly allowed a retroactive rather than a prospective recovery of these deferred charges. The court returned the case to the PSC to remove from the ratebase calculation deferred charges that were not unanticipated and nonrecurring.
Deferred Anticipated Charges Removed From Revenue Increase
1998-06-01
1 pages
Article (Journal)
Electronic Resource
English
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