State ex rel. Utilities Commission v. Thornburg

FRYE, Justice.

The questions presented on this appeal are: (1) whether the Commission erred as a matter of law by authorizing a utility to amortize cancellation costs as operating expenses for ratemaking purposes; and (2) whether the Commission’s treatment of cancellation costs in prior orders is res judicata as to issue one. We answer both issues in the negative and affirm the Commission’s order.

I

This is an appeal from an order of the Commission in a general rate case involving Carolina Power and Light Company (CP&L). CP&L is a public utility organized and existing under the laws of North…