Opinion ID: 1106788
Heading Depth: 1
Heading Rank: 10

Heading: Reproduction Costs.

Text: In the specification of errors Southern Bell contends that the Commission erred in excluding the testimony and exhibits relating to present day reproduction cost less depreciation. Louisiana has never adopted the reproduction cost new less depreciation theory of rate making. Estimates of reproduction cost new less depreciation are too conjectural to have probative value. Similar evidence was rejected for this reason by the Federal Power Commission in Colorado Interstate Gas Co. v. Federal Power Commission, 324 U.S. 581, 65 S.Ct. 829, 89 L.Ed. 1206, and in the Hope case, supra. Since the Commission has adopted a new formula based on the prudent investment theory, we see no error in excluding evidence relative to another formula which has never been adopted in Louisiana.