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SPRING VAL WATER CO v. PSC

71 A.D.2d 55 (1979)

In the Matter of Spring Valley Water Company, Petitioner, v. Public Service Commission of the State of New York, Respondent

Appellate Division of the Supreme Court of the State of New York, Third Department.

November 29, 1979

Attorney(s) appearing for the Case

Onofrio F. Laurino and Carl H. Grossman and De Forest & Duer (Robert H. Mulreany of counsel), for petitioner.

Peter H. Schiff (Charles R. Gibson and Michael Flynn of counsel), for respondent.

MAHONEY, P. J., KANE, MAIN and HERLIHY, JJ., concur.

SWEENEY, J.

Petitioner, a wholly owned subsidiary of the Hackensack Water Company (Hackensack) applied to the Public Service Commission for a rate increase of approximately $4,502,650. Using the consolidated capital structure of the petitioner and Hackensack to determine a fair rate of return for petitioner, and using a discounted cash flow (hereinafter DCF) method of computing cost of equity capital, the commission...

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