(A) The city, in the exercise of its power under this subchapter to determine just and reasonable rates for public utilities, shall give due consideration to the public need for adequate, efficient, and reasonable natural gas service and to the need of the utility for revenue sufficient to enable it to meet the cost of furnishing the service; including adequate provisions for depreciation of its utility property used and useful in rendering service to the public, and to earn a fair and reasonable return upon the investment in such property.
(B) Cost of service shall include operating expenses and a fair and reasonable return on rate base, less appropriate credits.
(C) In determining a fair and reasonable return on the rate base of a utility, a rate of return percentage shall be employed that is representative of the utility’s weighted average cost of capital, including, but not limited to, long-term debt, preferred stock, and common equity capital.
(D) The rate base of the utility shall consist of the utility’s property, used and useful in providing utility service, including the applicable investment in utility plant, less accumulated depreciation and amortization allowance for working capital, such other items as may be reasonably included, and reasonable allocations of common property, less such investment as may be reasonably attributed to other than investor-supplied capital, unless such deduction is otherwise prohibited by law.
(E) Operating expenses shall consist of expenses prudently incurred to provide natural gas service, including a reasonable allocation of common expenses.
(F) In determining the cost of service, the city shall give effect to all costs and allocations upstream of the city’s border station of the utility as reflected in the rate schedules approved by the Federal Energy Regulatory Commission or its successor.
(Prior Code, § 3-1211)
Statutory reference:
Related provisions, see Neb. RS 19-4612