Sunbelt Utilities v. Public Utility Commission

BARROW, Justice.

This is a direct appeal raising a question of first impression in Texas on the issue of contributions in aid of construction in utility rate base making. 1 The principal question presented is whether the Commission properly excluded the developer’s cost of the utility system from the rate base because the rate payers had already paid for this system as a part of the purchase price of their lots. We agree that these costs were properly excluded as contributions in aid of construction. Accordingly, we affirm the judgment of the district court which upheld the Commission’s order.

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