determinations to adopt the actual capital structure, and to authorize the Company’s inclusion of the depreciated PennVest plant in the rate base, we conclude that an Company’s acquisition premium is not appropriate in this particular case. We note that the Company itself argued that, given the rejection of the requested premiums by the ALJ, the very “[a]t least, the ALJ should have used his discretion to lean more toward rate of return Columbia’s and capital structure positions due to its history of doing these good things . . CWC Exc. .” at 15. Exceptions recognize that the decision regarding whether or not to award Columbia’s a rate of return premium should be made after considering all of the issues in a given proceeding. On balance, we conclude that an acquisition premium is not appropriate in this particular proceeding. E. Revenues - Merchandising Sales and Jobbing Work 1. Positions of the Parties The OCA recommended adding $15,762 of revenue from Merchandising Sales and Jobbing Work to above-the-line operating revenue. This amount Columbia’s included the sale of billing data to the Lancaster Area Sewer Authority (Authority) and the Borough of Columbia (Borough); payment for assisting the Borough with turn-ons and funds received from the sale of meters (salvage); insurance proceeds for a damaged fence and compressor; and the sale of bulk water. I&E recommended increasing the operating revenue for ratemaking purposes by $9,932 for the sale of the billing Company’s data to the Borough and the Authority. Columbia accepted this adjustment of $9,932 to its operating revenue, but disagreed with the remaining $5,832 adjustment recommended by the OCA. Instead of including this revenue as operating revenue, the Company argued that it should be booked to depreciation reserve. CWC M.B. at 16-17.
determinations to adopt the Company’s actual capital structure, and to authorize the inclusion of the depreciated PennVest plant in the Company’s rate base, we conclude that an acquisition premium is not appropriate in this particular case. We note that the Company itself argued that, given the rejection of the requested premiums by the ALJ, “[a]t the very least, the ALJ should have used his discretion to lean more toward Columbia’s rate of return and capital structure positions due to its history of doing these good things . . .” CWC Exc. at 15. Columbia’s Exceptions recognize that the decision regarding whether or not to award a rate of return premium should be made after considering all of the issues in a given proceeding. On balance, we conclude that an acquisition premium is not appropriate in this particular proceeding. E. Revenues - Merchandising Sales and Jobbing Work 1. Positions of the Parties The OCA recommended adding $15,762 of revenue from Merchandising Sales and Jobbing Work to Columbia’s above-the-line operating revenue. This amount included the sale of billing data to the Lancaster Area Sewer Authority (Authority) and the Borough of Columbia (Borough); payment for assisting the Borough with turn-ons and funds received from the sale of meters (salvage); insurance proceeds for a damaged fence and compressor; and the sale of bulk water. I&E recommended increasing the Company’s operating revenue for ratemaking purposes by $9,932 for the sale of the billing data to the Borough and the Authority. Columbia accepted this adjustment of $9,932 to its operating revenue, but disagreed with the remaining $5,832 adjustment recommended by the OCA. Instead of including this revenue as operating revenue, the Company argued that it should be booked to depreciation reserve. CWC M.B. at 16-17.
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