Opinion ID: 2323539
Heading Depth: 1
Heading Rank: 1

Heading: did the commission err in reducing narragansett's rates prospectively based upon historical data?

Text: Narragansett Electric does not take issue with the commission's right to order an interim rate reduction. Narragansett does contend that the reduction was based upon improper evidence. The commission relied upon historical data consisting of Narragansett's past realized return and not upon Narragansett's own prediction of future revenues and expenses. The role of this court on appeal from a rate making decision is limited to a determination of whether the commission acted illegally, arbitrarily, or unreasonably. Section 39-5-3. The standard for review of a decision and order by the commission is whether that ruling was lawful and reasonable and whether those findings were fairly and substantially supported by legal evidence. Roberts v. Narragansett Electric Co., 490 A.2d 506, 507 (R.I. 1985). In reviewing a decision and order of the commission, this court will consider the fairness and reasonableness of the end result achieved by the commission, and not the methodology by which that decision was reached. South County Gas Co. v. Burke, 486 A.2d 606, 607 (R.I. 1985). In light of the fact that this court will interfere only if those findings are unsupported by substantial evidence, we hold that the commission was within its right in prospectively adjusting Narragansett's rates on an interim basis in reliance upon the company's historically realized return. Accordingly, the petition for certiorari is denied and dismissed, and the records certified to us are ordered returned to the commission with our decision endorsed thereon.