<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 49-34A-19 - Costs and revenue considered in determining rates--Acquisition cost of property as alternative--Projected income and expenses. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2070695Normal { text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2070695SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070695CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2070695Normal-000000 { text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2070695DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } p.s2070695Normal-000001 { margin-left: 0.70in; text-indent: -0.45in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-right: 0; margin-bottom: .001pt; } p.s2070695Normal-000002 { text-indent: 0.25in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-top: 0; margin-left: 0; margin-right: 0; margin-bottom: .001pt; } span.s2070695DefaultParagraphFont-000003 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070695000004 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070695SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070695SCL-000005 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2070695Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=49-34A-19"><span class="s2070695SENU">49-34A-19</span></a><span xml:space="preserve" class="s2070695SENU">. </span><span class="s2070695CL">Costs and revenue considered in determining rates--Acquisition cost of property as alternative--Projected income and expenses.</span></p><p dir="ltr" class="s2070695Normal-000000"><span class="s2070695DefaultParagraphFont">In determining the rate base upon which the utility is to be allowed to earn a fair rate of return, the Public Utilities Commission shall use the depreciated original cost of the property. However, the commission may alternatively use the full acquisition cost of any property acquired by the utility after the property was first devoted to public use. Full acquisition cost of such property shall be used if:</span></p><p dir="ltr" class="s2070695Normal-000001"><span class="s2070695DefaultParagraphFont">(1)    The utility makes application prior to acquisition;</span></p><p dir="ltr" class="s2070695Normal-000001"><span class="s2070695DefaultParagraphFont">(2)    The commission holds a hearing;</span></p><p dir="ltr" class="s2070695Normal-000001"><span class="s2070695DefaultParagraphFont">(3)    The commission finds that the cost of acquisition is prudently incurred; and</span></p><p dir="ltr" class="s2070695Normal-000001"><span class="s2070695DefaultParagraphFont">(4)    The commission finds that the acquisition will provide benefits to the utility's customers.</span></p><p dir="ltr" class="s2070695Normal-000002"><span class="s2070695DefaultParagraphFont">In determining the revenue requirement the commission shall consider revenue, expenses, cost of capital and any other factors or evidence material and relevant thereto. The commission may take into consideration the reasonable income and expenses that will be forthcoming in a period of twenty</span><span class="s2070695DefaultParagraphFont-000003">-</span><span class="s2070695DefaultParagraphFont">four months in advance of the test year.</span></p><p dir="ltr" class="s2070695Normal"><span xml:space="preserve" class="s2070695000004"> </span></p><p dir="ltr" class="s2070695Normal"><span class="s2070695SCL">Source:</span><span xml:space="preserve" class="s2070695SCL-000005"> SL 1975, ch 283, § 12; SL 1976, ch 296, § 18; SL 1982, ch 330; SL 1990, ch 375.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 49-34A-19 - Costs and revenue considered in determining rates--Acquisition cost of property as alternative--Projected income and expenses. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2070696Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2070696SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070696CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2070696Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2070696DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070696000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070696SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070696SCL-000002 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s2070696Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=49-34A-19.1"><span class="s2070696SENU">49-34A-19.1</span></a><span xml:space="preserve" class="s2070696SENU">. </span><span class="s2070696CL">Separate accounts required for nonutility business--Profits and losses considered by commission.</span></p><p dir="ltr" class="s2070696Normal-000000"><span class="s2070696DefaultParagraphFont">Each public utility engaged directly or indirectly in any other business than that of the production, transmission or furnishing of gas or electricity to the public shall, if required by the commission, keep and render separately to the commission the accounts of all such other businesses, in which case all the provisions of this chapter shall apply to the books, accounts, papers, and records of such other business and all profits and losses may be taken into consideration by the commission if deemed relevant to the general fiscal condition of the public utility.</span></p><p dir="ltr" class="s2070696Normal"><span xml:space="preserve" class="s2070696000001"> </span></p><p dir="ltr" class="s2070696Normal"><span class="s2070696SCL">Source:</span><span xml:space="preserve" class="s2070696SCL-000002"> SDCL, § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=49-34A-19"><span class="s2070696SCL-000002">49-34A-19</span></a><span xml:space="preserve" class="s2070696SCL-000002"> as added by SL 1976, ch 296, § 18; SL 1991, ch 386, § 2.</span></p></div></body></html><br /><hr><br /><html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 49-34A-19 - Costs and revenue considered in determining rates--Acquisition cost of property as alternative--Projected income and expenses. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2070697Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2070697SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070697CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2070697Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2070697DefaultParagraphFont { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070697DefaultParagraphFont-000001 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070697000002 { font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s2070697SCL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2070697SCL-000003 { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } body { text-decoration-skip-ink: none; } </style></head><body><div><p dir="ltr" class="s2070697Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=49-34A-19.2"><span class="s2070697SENU">49-34A-19.2</span></a><span xml:space="preserve" class="s2070697SENU">. </span><span class="s2070697CL">Disallowance for rate purposes of unreasonable profits of affiliates in sales or services to utility.</span></p><p dir="ltr" class="s2070697Normal-000000"><span class="s2070697DefaultParagraphFont">The Public Utilities Commission, in determining the allowance for materials or services to be included in costs of operations for rate</span><span class="s2070697DefaultParagraphFont-000001">-</span><span class="s2070697DefaultParagraphFont">making purposes, may disallow any unreasonable profit made in the sale of materials to or service supplied for any public utility by any firm or corporation owned or controlled directly or indirectly by such utility or any affiliate, subsidiary, parent company, associate or any corporation whose controlling stockholders are also controlling stockholders of such utility. The burden of proof shall be on the public utility to prove that no unreasonable profit is involved.</span></p><p dir="ltr" class="s2070697Normal"><span xml:space="preserve" class="s2070697000002"> </span></p><p dir="ltr" class="s2070697Normal"><span class="s2070697SCL">Source:</span><span xml:space="preserve" class="s2070697SCL-000003"> SDCL, § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=49-34A-19"><span class="s2070697SCL-000003">49-34A-19</span></a><span xml:space="preserve" class="s2070697SCL-000003"> as added by SL 1976, ch 296, § 18.</span></p></div></body></html>