In any decision establishing rates for an electrical or gas corporation reflecting the reasonable and prudent costs of the new construction of any addition to or extension of the corporation’s plant, when the commission has found and determined that the addition or extension is used and useful, the commission shall consider a method for the recovery of these costs which would be constant in real economic terms over the useful life of the facilities, so that ratepayers in a given year will not pay for the benefits received in other years.
Cal. Pub. Util. Code § 454.8
Rates
Known as the Public Utilities Act
The act spans §§ 201–2120 (1,026 sections).
Applied in 1 court decision — leading case Toward Utility Rate Normalization v. Public Utilities Commission (1988)
Most recently applied in Toward Utility Rate Normalization v. Public Utilities Commission (March 1988)
Added by Stats. 1985, Ch. 926, Sec. 1.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.