(a) The rates and charges for the services rendered and required shall be reasonable and just to both the utility and the public. Every utility shall be entitled to such just and reasonable rates as will enable it at all times to fully perform its duties to the public and will, under honest, efficient and economical management, earn a fair net return on the reasonable value of its property devoted to the public service. For the purpose of fixing rates, such reasonable value of a public utility’s property shall be deemed to be the original cost thereof, less the accrued depreciation, as of the most recent date available. In any determination of the commission as to what constitutes such a fair return, the commission shall give due consideration among other things to the requirements of the business with respect to the utility under consideration, and the necessity, under honest, efficient and economical management of such utility, of enlarging plants, facilities and equipment of the utility under consideration, in order to provide that portion of the public served thereby with adequate service.
(b) Notwithstanding subsection (a) or any other provision to the contrary, the commission retains its authority to consider and adopt alternative methods of regulation of a utility as defined in Section 37-1-30 to establish rates and regulations for services furnished by the utility that are fair, just, and reasonable to the public and that provide fair, just, and reasonable compensation to the utility for the services.
(1) For the purposes of this subsection, the phrase “alternative methods of regulation” means the regulation of utility rates and service regulations by methods other than a determination of net return on a predetermined rate base.
(2) After June 20, 1995, any proceeding to adopt an alternative method of regulation as defined in subdivision (1) shall be initiated by application of the utility seeking such alternative regulation, by the commission on its own motion, or by the Attorney General as provided in Section 37-1-16.
(Acts 1920, No. 37, p. 38; Code 1923, §9770; Code 1940, T. 48, §52; Acts 1949, No. 89, p. 113; Acts 1971, 1st Ex. Sess., No. 97, p. 171, §1; Acts 1978, No. 850, p. 1273, §1; Acts 1995, No. 95-210, p. 340, §1.)
Notes of Decisions
Cont'l Tel. Co. v. ALA. PUB. Serv. Comm'n, 479 So. 2d 1195 (Ala. 1985).
· cites it 7× “Alabama requires Continental to use an original cost rate base when applying for a rate increase, § 37-1-80. The allowance by the Commission of a certain amount of revenue dollars, after adjustment for tax effect, when applied to the dollar amount of the original cost rate base,…”
Ala. Power Co. v. Ala. Pub. Serv. Comm'n, 390 So. 2d 1017 (Ala. 1980).
· cites it 6× “APCO argues in its appeal that its property is being confiscated in violation of the Fifth and Fourteenth Amendments of the Constitution of the United States, Sections 6 and 13 of the Constitution of the State of Alabama of 1901, and § 37-1-80 of the Code of 1975, because it is…”
Cont'l Tel. Co. v. ALA. PUB. SERV. COM'N, 427 So. 2d 981 (Ala. 1982).
· cites it 4× “Although Continental has likely recovered a portion of the cost of this property through cost of service, present and future ratepayers, by the terms of § 37-1-80, cannot be required to pay rates on property no longer devoted to public service.”
Ala. Metallurgical Corp. v. ALA. PUB. SER. COM'N, 441 So. 2d 565 (Ala. 1983).
“Lastly, we must consider the issue whether Rates RSE and CNP are just and reasonable and are supported by proper evidence as is required by § 37-1-80, Code 1975. We find that every material aspect of Rates RSE and CNP have foundation in the evidence of record before the…”
Taffet v. S. Co., 967 F.2d 1483 (11th Cir. 1992).
“§ 37-1-83; if the PSC, upon investigation of the complaint, determines that the rate is indeed excessive or unfair, it must set a reasonable rate — one that is fair to both public and utility — to be followed in the future, id.”
Graddick v. Alabama Pub. Serv. Comm'n, 441 So. 2d 586 (Ala. 1983).
“Section 37-1-81 reads as follows: “(a) Whenever a utility desires to put in operation a new rate or service regulation or to change any existing rate or service regulation, it shall file with the commission a new schedule embodying the same, not less than 30 days prior to the…”
South Cent. Bell Tel. Co. v. Holmes, 689 So. 2d 786 (Ala. 1996).
“” These duties include general supervision, § 37-1-32, and fixing rates, § 37-1-80 et seq. The APSC regulates coin telephone service as a public utility service.”
Union Springs Tel. Co. v. Alabama Pub. Serv. Comm'n, 437 So. 2d 485 (Ala. 1983).
· cites it 2× “Ala. Code 1975, § 37-1-80. Operating expenses are calculated on the basis of a test period, which is usually the most recent twelvemonth period for which there are complete expense data, adjusted for known and measurable changes occurring outside the test year.”
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