Opinion ID: 2339319
Heading Depth: 1
Heading Rank: 3

Heading: the division's claim in respect to reduction of working capital to reflect the availability of accrued interest on long-term debt

Text: The division seeks review of the commission's determination not to reduce the allowance for working capital accorded the company by reason of cash-flow advantages allegedly conferred upon the company on account of its ability to invest funds collected from rate payers prior to the dates of periodic payment of interest on long-term debt. The commission rejected this contention based upon our holding in Michaelson v. New England Telephone & Telegraph Co., R.I., 404 A.2d 799, 805 (1979), wherein we, in reliance on Rhode Island Consumers' Council v. Smith, 113 R.I. 384, 394, 322 A.2d 17, 23 (1974), held as a matter of law that accrued interest expense could not be considered in reduction of working capital. The arguments advanced by the division do not persuade us to reject the concepts upon which our determination in Michaelson was based.