The used-and-useful test also is a hindsight requirement. The regulator asks
after the fact whether the investment worked out as might have been hoped. This
characteristic distinguishes the used-and-useful test from one that might be called
the foresight criterion, an example of which is the prudent-investment test. The
classic articulation of the prudent- investment test is often credited to Justice
Brandeis in his 1923 concurrence in Missouri ex rel. Southwestern Bell Tel. Co.
v. Pub. Sew. C~rnrn'n.'H~e wrote that a utility should receive from regulators
the opportunity to earn "a fair return on the amount prudently invested" to
provide ~ervice.'S~i milarly, in Duquesne, Justice Scalia, in his concurrence,
described prudent investment as the "capital reasonably expended to meet the
utility's legal obligation to assure adequate service."14 The prudent-investment
test has come to stand for the proposition that a utility may recover its
investment, through allowed rates, if its investment decision was prudent in light
of the information reasonably available to the utility when that decision was
made
The used-and-useful test also is a hindsight requirement. The regulator asksafter the fact whether the investment worked out as might have been hoped. Thischaracteristic distinguishes the used-and-useful test from one that might be calledthe foresight criterion, an example of which is the prudent-investment test. Theclassic articulation of the prudent- investment test is often credited to JusticeBrandeis in his 1923 concurrence in Missouri ex rel. Southwestern Bell Tel. Co.v. Pub. Sew. C~rnrn'n.'H~e wrote that a utility should receive from regulatorsthe opportunity to earn "a fair return on the amount prudently invested" toprovide ~ervice.'S~i milarly, in Duquesne, Justice Scalia, in his concurrence,described prudent investment as the "capital reasonably expended to meet theutility's legal obligation to assure adequate service."14 The prudent-investmenttest has come to stand for the proposition that a utility may recover itsinvestment, through allowed rates, if its investment decision was prudent in lightof the information reasonably available to the utility when that decision wasmade
การแปล กรุณารอสักครู่..
