Emporium Water Co. v. Pennsylvania Public Utility Commission

OPINION BY

Judge COHN JUBELIRER.

In this case we determine whether Emporium Water Company (Utility) should be allowed to use a “hypothetical capital structure” in calculating the utility’s proper rate of return. Utility appeals from the Order of the Pennsylvania Public Utility Commission (PUC), issued December 28, 2006 (December Order), which, inter alia, concluded that Utility could not use a hypothetieal capital structure, but must use the Utility’s “actual capital structure”. 1

Utility is a private Pennsylvania corporation that serves approximately 1,466 customers in and around the Borough of…