Public Utilities Reports Volume 1 (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 edition. Excerpt: ... and the protestants. The main contention xipon this application between the applicant and the protestants is upon the question of what constitutes the fair value of applicant's property for rate-making purposes, and especially what value, if any, shall be assigned to applicant's leaseholds or gas producing acreage. There is also involved the subsidiary question of whether or not Federal income, excess profits and war taxes shall be treated as operating expenses and what consideration shall be given the present price levels in the adjustment of applicant's rates, as well as certain other matters pertaining to the allocation or assignment of investment, earnings and expenses as between applicant's three branches of business, oil, gas and gasoline. This Commission, by its opinion on a former application of this company (Re United Fuel Gas Co. decided February 28, 1918, P.U.R.1918C, 193), set forth in some detail the previous history and activities of applicant; therefore, we shall herein limit ourselves to the statement of such facts, which, taken together with the facts set forth in that opinion, suffice for a proper understanding of the premises upon which our conclusions are based. In the former case, evidence was offered showing the book value or actual investment cost of applicant's properties to and including December 31, 1916, and upon that evidence we found the fair value of applicant's property to be $17,750,000. Since that time, as will hereinafter appear, applicant has made extensive additions to its plant and property, materially increasing its investment cost. As we have before stated, the books of applicant show that its investment in its gas properties as of March 31, 1919, including incomplete construction and apportionment...