Abstract
The Supreme Court of North Carolina ruled that legal fees that could have been avoided if a utility had carried out its responsibility to provide adequate water services could not be considered as operating expenses. Glendale Water Inc., a public utility in Wake County, North Carolina, had applied for a rate increase based on expenses that included legal fees the utility had spent in challenging a $13,000 penalty for failing to notify the state and affected customers of violations of the microbiological maximum contaminant level.
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