Recovery of Investment Allowed

Abstract

The Court of Appeals of New York concluded that a public service commission had not abused its discretion in allowing a utility full recovery for an investment in an abandoned storage facility. The public service commission had approved a rate increase for Consolidated Edison, allowing the utility to write off the investment as an extraordinary expense to be amortized over eight years. An appellate division had confirmed the public service commission determination but, in an appeal, the state attorney had argued that the commission's policy of using the prudent investment approach was faulty.