Opinion ID: 1140706
Heading Depth: 1
Heading Rank: 3

Heading: iiimaterial and supplies

Text: Mountain Bell asked that working capital and the cost of materials and supplies on hand be included in the rate base. The Commission permitted the inclusion of the average of materials and supplies in the amount of $1,722,288. It refused to grant any allowance for working capital for the reason that Mountain Bell's accrued taxes were a larger sum on an average basis than the amount of cash working capital needed, and that the reserve for taxes could be used as working capital. The protestants urged that the tax accruals were sufficient additionally to finance the cost of materials and supplies and therefore asked that materials and supplies also be eliminated from the rate base. Some public utilities commissions have excluded materials and supplies, as well as working capital, from the rate base when the tax accruals have been substantially in excess of these items. Ex parte Gulf States Utilities Co., 46 P.U.R.3d 294 (La.); Re Otter Tail Power Company, 49 P.U.R.3d 305 (N.D.); and Re The Orwell Telephone Company, 61 P.U.R.3d 460 (Ohio). In contrast other commissions, while excluding working capital, have permitted the inclusion of materials and supplies in the base. Re Southwestern Bell Telephone Company, 2 P.U.R.3d 1 (Ark.); Re Pacific Telephone & Telegraph Company, 53 P.U.R.3d 513 (Cal.); Re Pacific Telephone & Telegraph Company, 17 P.U. R.3d 434 (Ore.); and Re Northwestern Bell Telephone Company, 77 P.U.R.3d 215 (S.D.) In past rate orders Mountain Bell has been permitted to include materials and supplies in the base. Then and now the allowance of this item is within the Commission's judgment and discretion; it is beyond our purview. Duquesne Light Co. v. Pennsylvania Public Utility Commission, 176 Pa.Super. 568, 107 A.2d 745.