Abstract
In 1990, the Denver Water Board adopted a split‐allocation method for setting rates. Capital costs were allocated on an incremental‐growth basis and operation, repair, and replacement costs on a current use basis. A 1992 modification required that all capital investment in water facilities be proportionally split between in‐city and extraterritorial service based on 35 years of historical growth and 35 years of prospective growth. The trial court, appellate court and state supreme court upheld the rate‐making method.
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