City and County of San Francisco v. Public Util. Com.

Opinion

PETERS, J.

These are consolidated proceedings to review Decision No. 77984 of the Public Utilities Commission of the State of California. The decision provides that the Pacific Telephone and Telegraph Company (Pacific) may use accelerated depreciation with the normalization method of accounting as defined in subsection (Z)(2)(B) of section 167 of the Internal Revenue Code and that, if it elects to do so, the commission, for rate making purposes, will compute Pacific’s tax expense on the basis of straight line depreciation for the purpose of establishing its cost of service and will give…