Contel of Arkansas, Inc. v. Arkansas Public Service Commission

Elizabeth W. Danielson, Judge.

Appellant, Contel of Arkansas, Inc., a telephone utility serving approximately 75,000 Arkansas ratepayers, appeals from a decision of the Arkansas Public Service Commission, appellee, involving Contel’s application for a general rate increase. Contel contends the Commission erred in calculating its cost of equity by including in its parent corporation’s capital structure accrued common stock dividends payable as a zero-cost source of funds.1 Alternatively, Contel argues that the Commission’s use of a 105-day lag time during which Contel had the use of any…