State Ex Rel. North Carolina Utilities Commission v. Westco Telephone Co.

The questions posed for determination on this appeal are as follows: (1) Did the court below err in affirming the finding and conclusion of the Commission that the fair value of the property of Westco used and useful in rendering service to the public as of 31 December 1963, was $4,120,000? (2) Did the court commit error in affirming the finding and conclusion of the Commission that a fair and reasonable rate of return was 3.8%, and that such rate would produce $156,560 in net operating income?

Ordinarily the fair value of a utility’s property is found to be less than the reconstruction cost…