Topic:"Reasonableness Review" in M12451

nd must rely on the utility's application materials, the utility's responses to interrogatories, and the utility's witness testimony. Accordingly, the burden of proof established by General Statutes § 8 Conn. Agencies Regs. § 16-1-53 et se...

AI summary The standard of review for rate amendment applications is based on the preponderance of the evidence, requiring the utility to provide sufficient evidence that the requested rates are both sufficient and reflect prudent and efficient management, as outlined in General Statutes.

prove that the capital investment was prudent and reasonable. See General Statutes § 16-19e(a)(5) ("the level and structure of rates charged customers shall reflect prudent and efficient management"). The "used and useful" standard is a "b...

AI summary The text discusses the principle that utility rates must reflect prudent and efficient management, emphasizing the 'used and useful' standard for including property in the rate base. It references legal precedents and a regulatory decision that ratepayers should not be responsible for returns on plant that is not in-service.

a. Introduction The approved ROE is based on a similarly situated electric utility providing expert, efficient, and prudent management of the utility franchise; therefore, the Authority must consider whether to adjust the ROE for the Compa...

AI summary The Authority concludes that a 20 basis point reduction to the Company's allowed ROE is necessary due to its deficient performance in managing parts of its utility franchise, aiming to incentivize improvement and balance investor and consumer interests.

d. Non-Compliance with Other Authority Orders In addition to the foregoing adjustments, the Authority finds an additional five (5) basis points reduction is warranted to address other instances where the Company failed to comply with expre...

AI summary The Authority imposes an additional 5 basis points reduction due to the Company's non-compliance with regulatory orders. This follows a failure to adhere to state and federal laws and the Authority's direction, as highlighted in legal precedents. The Authority also sought comments on continuing ROE reductions and other factors affecting rate of return.

28 Q. HAVE YOU REVIEWED ALL THE INFORMATION PRESENTED BY THE 29 COMPANY IN SUPPORT OF ITS NET SALVAGE REQUEST? 30 A. Yes. The information provided is inadequate to support or demonstrate the 31 reasonableness of its request for an overall...

AI summary The respondent confirms having reviewed the information presented by the company in support of its net salvage request but finds it inadequate to demonstrate the reasonableness of the request, which involves a negative 21.8% net salvage for mass property.