Opinion ID: 577178
Heading Depth: 3
Heading Rank: 4

Heading: Duplicative Facilities

Text: 52 Petitioners also argue that the waste of duplicate facilities justified a denial of the application. The apparent concern with duplicate facilities is that regulated industries charging cost-based rates have little economic disincentive to avoid waste and may easily pass on unnecessary costs to the consuming public--costs that could have been avoided by an appropriate regulatory strategy. See Kansas Power & Light Co. v. FERC, 891 F.2d 939, 943 (D.C.Cir.1989). However, the Commission found, upon sufficient evidence, that Norpac and Weyerhaeuser would bear the cost of construction, not utility rate payers. As to the $35,000 of Northwest's costs attributable to construction of the meter station, the Commission found that this would have an insignificant effect on its ratepayers. 51 F.E.R.C. at 61,913.