Energy and Utilities Law Commons^™

Public Utility Valuation For Rate Making Purposes

Michigan Law Review

Ever since Munn v. Illinois (1876) 94 U. S. 113, which first decided that the charges to be made for services rendered by public utilities were to be subject to governmental regulation, the courts have been confronted with a problem, so elusive and indefinite, that over five decades of litigation and wrangling have failed to provide a satisfactory solution. The so called "rule" of Smyth v. Ames (1898) 169 U. S. 466, specifying the elements to be considered in ascertaining the value of public utilities for the purpose of rate-making, has only served to submerge the problem further in its …