AN ANALYSIS OF MISSOURI'S UTILITY EARNINGS AND RATE BASE FORMULA--A REJOINDER.
The article presents an analysis of Missouri's utility earnings and rate base formulae. The matter of General Order No. 38A of the Missouri Public Service Commission relating to its rate making policies and practices needs further interpretation and review in answer to an analysis. Although concluding that the Missouri rate base and earnings formula is definitely a step in the right direction, because, at present, it permits a needed increase in permitted earnings of utilities. The Commission's order merits a more pragmatic and less hypothetical treatment in order to set forth the issues in the case. It is also believed that the formula is definitely a step in the right direction, not because it recognizes the need for increased earnings, but because it more actually reflects the facts relative to depreciation accountability. The purpose of this paper is to outline briefly some of the economic and accounting principles that were observed by the Missouri Commission in order to arrive at their announced policy relating to the establishment of the utility rate base in future proceedings.
- DOI
- 10.2308/tar-7061449
- Volume
- 30 (3)
- Pages
- 485-492
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref