Opinion ID: 2217179
Heading Depth: 1
Heading Rank: 5

Heading: ad valorem taxes related to cwip

Text: The next item of cost in dispute is the PUC's exclusion of $57,944 from company's cost of services, representing the amount of ad valorem taxes related to CWIP. Company sought to include ad valorem taxes on CWIP in its cost of services because of the bookkeeping burden of capitalizing small amounts. The PUC ruled, however, that such taxes had to be capitalized and made the deduction. Company does not dispute the PUC's ruling regarding method; however, it asserts that the amount deducted greatly exceeds the amount that should have been deducted. The figure was arrived at by one of the expert witnesses for cities, purportedly from information furnished by company. Company disputes his basis for computation and denominates it as guesswork. Company had estimated total ad valorem taxes of over 1.5 million. When broken down the valuations upon which the taxes were computed were found to contain some 2 million dollars plus in the CWIP category. Under the PUC's ruling such could not be included. Company does not dispute the method of computation but only the basic figure of 2 million dollars plus. Nowhere does company point to a more accurate figure; instead it refers to a de minimus amount. The figure appears to have been taken from company's computation for tax deduction. The PUC had the expert testimony upon which to base its decision, and we find that to be substantial evidence and will not overturn it.