Public Service Commission v. Wilmington Suburban Water Corp.

MOORE, Justice:

This appeal by the Public Service Commission (the Commission) presents an issue of first impression: whether the Commission’s assignment of a zero cost of capital to property contributed to a utility, thereby reducing the return allowed that utility on its rate base, circumvents the Public Utilities Act of 1974 [26 Del.C. § 101 et seq. (Supp.1982) (the Act)]. 1 Wilmington Suburban Water Corporation (WSWC), a regulated public utility, was denied a proposed water rate increase by the Commission because of the questioned zero cost assignment. Upon WSWC’s successful appeal to the…