Opinion ID: 1140706
Heading Depth: 1
Heading Rank: 2

Heading: iiplant under construction

Text: The protestants object to the inclusion within the rate base of funds invested by Mountain Bell in plant under construction. The principal ground for this objection is that these portions of the plant are not producing revenue. They further object to the capitalization of interest at the rate of 5% on funds invested in plant under construction so that at the end of the year the aggregate of this interest will become a part of the rate base. Historically, Mountain Bell has been permitted to include plant under construction funds as a part of the rate base, although in this proceeding the Commission's staff recommended that such outlays be eliminated. The recommendation was rejected by the Commission. Also historically, Mountain Bell has credited income with an amount equal to the interest charged during construction. The crediting of income with this interest to a substantial extent offsets amounts realized from the rate of return on the capitalized interest. State public utilities commissions have reached varying conclusions with respect to inclusion of plant under construction and interest thereon in the bases. For example, see Re Northwestern Bell Telephone Company, 77 P.U.R.3d 215 (S.D.); Re Pacific Telephone and Telegraph, 53 P.U.R.3d 513 (Calif.); and Re Southern Bell Telephone and Telegraph Company, 66 P.U.R.3d 1 (Fla.). The Federal Communications Commission in substance has approved an accounting procedure similar to that approved by the Commission for Mountain Bell. Re American Telephone and Telegraph Company, 71 P.U.R.3d 273. Our attention has been called to no case, and we have been unable to find any case, in which a court has overruled the decision of a commission with respect to these matters. We regard the whole plant under construction issue as one within the province of the Commission and we believe that any change in the Commission's order in this respect would be an unwarranted interference with the function of the Commission. In other words, we would be setting ourselves up as the Commission if we reversed as to this matter. Airport Limousine Service, Inc. v. Cabs, Inc., Colo., 447 P.2d 978.