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PUBLIC SERV. COM'N v. WILMINGTON SUB. WATER

467 A.2d 446 (1983)

PUBLIC SERVICE COMMISSION OF the STATE OF DELAWARE, Defendant-Appellant, v. WILMINGTON SUBURBAN WATER CORPORATION, Plaintiff-Appellee.

Supreme Court of Delaware.

Decided September 26, 1983.

Attorney(s) appearing for the Case

George C. Hering, III, and Clarkson P. Collins, Jr., (argued), Morris, James, Hitchens & Williams, Wilmington, for defendant-appellant.

H. James Conaway, Jr., Young, Conaway, Stargatt & Taylor, Wilmington, and William J. Lebuhn (argued), General Waterworks Management & Service Co. (Corporate Counsel), Bryn Mawr, Pa., for plaintiff-appellee.

Before McNEILLY and MOORE, JJ., BROWN, Chancellor.

MOORE, Justice:

This appeal by the Public Service Commission (the Commission) presents an issue of first impression: whether the Commission's assignment of a zero cost of capital to property contributed to a utility, thereby reducing the return allowed that utility on its rate base, circumvents the Public Utilities Act of 1974 [26 Del.C. § 101 et seq. (Supp.1982) (the Act)].1 Wilmington Suburban Water Corporation (WSWC), a...

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