Public gas utility filed application with the Public Utilities Commission of Ohio (PUCO) for a rate increase to cover costs of a pipeline extension. PUCO approved the rate increase and denied consumers’ application for a rehearing.
Consumers appealed.
The Supreme Court held that:
- As a matter of first impression, assessing whether property is “useful” for purposes of determining a public utility’s rate base requires finding that the property be beneficial in rendering service for the convenience of the public as of the date certain, and
- PUCO misapplied the used-and-useful test when it looked beyond the date certain and determined that utility’s investment in the pipeline extension was prudent rather than useful, as justification for rate increase.