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PETITION OF ELIZABETHTOWN WATER CO.

107 N.J. 440 (1987)

527 A.2d 354

IN THE MATTER OF THE PETITION OF ELIZABETHTOWN WATER COMPANY FOR AN INCREASE IN RATES. and IN THE MATTER OF THE ANALYSIS OF EARNINGS OF ELIZABETHTOWN WATER COMPANY. ELIZABETHTOWN WATER COMPANY, RESPONDENT AND CROSS-APPELLANT, v. NEW JERSEY BOARD OF PUBLIC UTILITIES, APPELLANT AND CROSS-RESPONDENT.

The Supreme Court of New Jersey.

Decided June 29, 1987.

Attorney(s) appearing for the Case

Bertram P. Goltz, Jr., Deputy Attorney General, argued the cause for appellant and cross-respondent (W. Cary Edwards, Attorney General of New Jersey, attorney; James J. Ciancia, Assistant Attorney General, of counsel).

Helene S. Wallenstein, Assistant Deputy Public Advocate, argued the cause for appellant and cross-respondent Public Advocate (Alfred A. Slocum, Public Advocate, attorney; Helene S. Wallenstein and Margery S. Golin, on the briefs).

Brendan T. Byrne and William R. Holzapfel argued the cause for respondent and cross-appellant (Carella, Byrne, Bain & Gilfillan, and LeBoeuf, Lamb, Leiby & MacRae, attorneys).

Richard B. McGlynn argued the cause for amicus curiae New Jersey Utilities Association, Inc. (Stryker, Tams & Dill, attorneys; Mark L. Mucci, on the brief).

The opinion of the Court was delivered by GARIBALDI, J.

The questions presented in this case are: (1) whether an order issued by the Board of Public Utilities (BPU) postponing the effective date of a rate increase granted to Elizabethtown Water Company (Elizabethtown or company) in order to offset the company's overearnings from prior years constitutes retroactive ratemaking, and, if so, (2) whether the BPU has the authority to engage in this kind of retroactive ratemaking...

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