Babbit v. Public Utilities Commission

The main issue before this court is raised by appellants’ third proposition of law, wherein it is contended that the commission’s ££* 8 * failure to include zero-cost components in applicant’s capital structure is against the weight of the evidence, unlawful, and capricious. ’ ’

The “zero-cost components” which appellants argue should have been considered in the cost of capital computation are the accumulated deferred federal income tax account and the accumulated deferred investment tax credit *85account. Although other factors may be involved, the -accumulated deferred income tax account exists…