Popowsky v. Pennsylvania Public Utility Commission

The majority opinion upsets the “rate bargain” between Pennsylvania Power & Light Company (PP & L) and its ratepayers by making the ratepayers pay for something that they already paid for and giving PP & L a 31 million dollar windfall. Not only does it breach the rate bargain, the majority throws ratemaking into a complete turmoil. For example, as PP & L’s counsel admits, if interest rates go down resulting in a higher than anticipated rate of return to the utility, ratepayers can seek recovery of excess rates of return in future rate cases. Under the majority’s analysis, nothing is ever…