The Public Utilities Commission, in determining the allowance for materials or services to be included in costs of operations for rate-making purposes, may disallow any unreasonable profit made in the sale of materials to or service supplied for any public utility by any firm or corporation owned or controlled directly or indirectly by such utility or any affiliate, subsidiary, parent company, associate or any corporation whose controlling stockholders are also controlling stockholders of such utility. The burden of proof shall be on the public utility to prove that no unreasonable profit is involved.
S.D. Codified Laws § 49-34A-19.2
Disallowance for rate purposes of unreasonable profits of affiliates in sales or services to utility
Applied in 2 court decisions — leading case In re Montana-Dakota Utilities Co. for Authority to Establish Increased Rates for Electric Service (1979)
Most recently applied in Application of Mont.-Dak. Util. Co., Etc. (April 1979)
Source: SDCL, § 49-34A-19 as added by SL 1976, ch 296, § 18.
Official source: South Dakota Legislature. Reproduced from public-domain South Dakota statutes; confirm against the official source for the current text. Not legal advice.