Opinion ID: 2391146
Heading Depth: 1
Heading Rank: 5

Heading: Formulae.

Text: The Company contends that the Board completely ignored the allegedly substantial evidence introduced at the hearings in relation to reproduction cost of its plant. It appears from the record that the Company introduced evidence as to its average net investment (an historical cost rate base), as to cost of reproduction less existing depreciation (a reproduction cost new rate base), and expert testimony as to present fair value. The Board determined that the evidence indicated that the expert gave cost of reproduction a weighting of approximately 2/3 and actual (historical) cost a weighting of 1/3 in arriving at his opinion of fair value. It is necessary only to reiterate that the settled law of this State is that there are a number of formulae useful in determination of fair value of a utility's property for use as a rate base and that the Board is not and should not be bound by any simple formula or combination of formulae. Public Service Coordinated Transport v. State, supra (5 N.J., at p. 217); In re New Jersey Power & Light Co., supra (9 N.J., at p. 510). It follows that the Board's determination may not be set aside merely because it did not fully adopt any one of the specific formulae used by the Company in presenting its evidence on rate base.