Opinion ID: 1297749
Heading Depth: 1
Heading Rank: 7

Heading: Credit Received from Western Electric.

Text: [24] In arriving at Pacific's rate base the commission deducted $15,000,000 from physical plant, representing plant purchased from Western and in service or in course of construction, but billing and payment for which had not yet been completed. Pacific asserts that the issue was whether such property is owned by Pacific and dedicated by it to the public service, and that the commission erroneously, arbitrarily, and in contravention of constitutional principles refused to make a finding of this essential fact, though uncontradicted. As disclosed by the commission's decision, however, and not controverted by Pacific, the $15,000,000 had already been included by the commission as accounts receivable in Western's net investment (rate base). The commission found that it would be unreasonable to require Pacific's ratepayers to pay earnings on this amount twice, and so deducted it from Pacific's rate base. The commission followed the same approach in the 1954 and 1958 rate cases involving Pacific (53 Cal. P.U.C. 275, 300-305; 56 Cal. P.U.C. 277, 282), the result appears logical and fair, and no error is shown. Board of Public Utility Comrs. v. New York Tel. Co. (1926) 271 U.S. 23, 31-32 [46 S.Ct. 363, 70 L.Ed. 808], and New Rochelle Water Co. v. Maltbie (1936) 248 App.Div. 66 [289 N.Y.S. 388, 397], cited by Pacific, do not involve comparable situations of double return on rate base allowance and are not persuasive here.