Opinion ID: 1908433
Heading Depth: 1
Heading Rank: 1

Heading: the ratemaking process.

Text: [¶ 6] The purpose of Maine's public utilities regulatory system is to assure safe, reasonable and adequate service at rates which are just and reasonable to customers and public utilities. 35-A M.R.S.A. § 101 (1988). In the usual proceedings for approval of schedules for prospective rate increases pursuant to 35-A M.R.S.A. §§ 301-312 (1988 & Supp.1997), the Commission has the power to approve rates which are just and reasonable, and [e]very unjust or unreasonable charge for public utility service is prohibited and declared unlawful. 35-A M.R.S.A. § 301(3), (4) (1988 & Supp.1997). The statute is explicit that [i]n determining just and reasonable rates, the commission: A. Shall provide such revenues to the utility as may be required to perform its public service and to attract necessary capital on just and reasonable terms; and . . . B. Shall, to a level within the Commission's discretion, consider whether the utility is operating as efficiently as possible and is utilizing sound management practices. . . . 35-A M.R.S.A. § 301(4) (1988 & Supp.1997). The just and reasonable rate is determined by the Commission after consideration of the utility's appropriate rate of return, `designed to provide sufficient revenue to cover the Company's total cost of service. Such costs include both the operating expenses of the utility and an adequate return on the investment in property and equipment serving the public.' Maine Pub. Advocate v. Public Utils. Comm'n, 476 A.2d 178, 179 (Me.1984) (quoting Central Me. Power Co. v. Pub. Utils. Comm'n, 455 A.2d 34, 38 (Me. 1983)); see also Camden & Rockland Water Co. v. Maine Pub. Utils. Comm'n, 432 A.2d 1284, 1286 (Me.1981).