State v. Zephyr Cove Water Co.

*635OPINION

This appeal is from a judgment of the district court that vacated an order of the Public Service Commission regarding the Zephyr Cove Water Company and fixed a new rate of return as determined by the district judge.

THE FACTS

On January 28, 1972, respondent Zephyr Cove Water Company (hereafter Utility) applied to the Public Service Commission of Nevada (hereafter Commission) for a general rate increase. The application was supported by evidence of net worth derived from the Utility’s books, and projected expenses for 1972, showing a substantial net loss at current rates and representing…