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SUNBELT UTILITIES v. PUBLIC UTILITY COMMISSION

No. B-8252.

589 S.W.2d 392 (1979)

SUNBELT UTILITIES, Appellant, v. PUBLIC UTILITY COMMISSION of Texas, Appellee.

Supreme Court of Texas.

Rehearing Denied December 12, 1979.

Attorney(s) appearing for the Case

David Claflin, Austin, Kronzer, Abraham & Watkins, W. James Kronzer, Houston, for appellant.

Mark White, Atty. Gen., Joyce Beasley, Asst. Atty. Gen., Austin, for appellee.

BARROW, Justice.

This is a direct appeal raising a question of first impression in Texas on the issue of contributions in aid of construction in utility rate base making.1 The principal question presented is whether the Commission properly excluded the developer's cost of the utility system from the rate base because the rate payers had already paid for this system as a part of the purchase price of their lots. We agree that these

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