49-34A-19. Costs and revenue considered in determining rates--Acquisition cost of property as alternative--Projected income and expenses. In determining the rate base upon which the utility is to be allowed to earn a fair rate of return, the Public Utilities Commission shall use the depreciated original cost of the property. However, the commission may alternatively use the full acquisition cost of any property acquired by the utility after the property was first devoted to public use. Full acquisition cost of such property shall be used if:
(1) The utility makes application prior to acquisition;
(2) The commission holds a hearing;
(3) The commission finds that the cost of acquisition is prudently incurred; and
(4) The commission finds that the acquisition will provide benefits to the utility's customers.
In determining the revenue requirement the commission shall consider revenue, expenses, cost of capital and any other factors or evidence material and relevant thereto. The commission may take into consideration the reasonable income and expenses that will be forthcoming in a period of twenty-four months in advance of the test year.
Source: SL 1975, ch 283, § 12; SL 1976, ch 296, § 18; SL 1982, ch 330; SL 1990, ch 375.
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