Virginia-American Water Co. v. State Corp. Commission

Holding

Virginia-American Water Company noted an appeal of right from a final order of the State Corporation Commission fixing 8.35% as a fair and reasonable rate of return to be earned by the company. It alleges that the Commission erred in using as the basis for its decision the consolidated capital structure and cost of money of the American Water Works Company, Inc., which owns the common stock of Virginia-American. The Commission contends that the sole question to be resolved is whether the 8.35% rate of return allowed Virginia-American is a fair and reasonable rate or is shown to be confiscatory or unreasonable and unjust.