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  5. 634 P.2d 192 (1981)
 

CITY OF HELENA v. MONTANA DEPT., ETC.

Nos. 79-54, 81-24.

634 P.2d 192 (1981)

The CITY OF HELENA, Montana, Petitioner and Appellant, v. MONTANA DEPARTMENT OF PUBLIC SERVICE REGULATION et al., Respondents. CITY OF BILLINGS, a municipal corporation, Petitioner and Appellant, v. MONTANA DEPARTMENT OF PUBLIC SERVICE et al., Respondents, and Montana Public Consumer Counsel, Intervenors.

Supreme Court of Montana.

Decided September 21, 1981.

Attorney(s) appearing for the Case

Calton Law Firm, Billings, Calvin Calton argued, Billings, Rod Hamman argued, Billings, Hull & Sherlock, Helena, for petitioner and appellant.

Crowley Law Firm, Billings, Thomas M. Kelley argued, Billings, Robert F.W. Smith argued, P.S.C., Helena, for respondent.

James Paine argued, Consumer Counsel, Helena, for intervenors.

David V. Gliko, City Atty., Great Falls, for amicus curiae.

MORRISON, Justice.

On March 31, 1977, the City of Helena filed an application for a rate increase for the water utility service owned by the City. Part of the requested rate increase was for amortization of an existing operating deficit in the water services fund. The amount of the deficit was $311,360.51.

A hearing on this application was held before the Public Service Commission (PSC) June 21, 1977. On April 3, 1978, the PSC issued order no. 4335(a), which...

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