County of Los Angeles v. Southern Counties Gas Co.

I dissent.

It appears to me that the gas company formula, accepted by the majority, attempts to deduct every possible dollar of invested capital from the distribution system before they compute the value of the distribution system attributable to either public or private ways. In this manner they seek to base the county’s share on little more than pipe in the ground. This is a complete misconception of the Broughton Act and its interpretation by this court in the Dinuba case. (County of Tulare v. City of Dinuba, 188 Cal. 664 [206 P. 983].)

The Broughton Act provides that the utility “shall…