South Dakota Codified Laws 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;
Terms Used In South Dakota Codified Laws 49-34A-19
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Property: includes property, real and personal. See South Dakota Codified Laws 2-14-2
(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.