Telluride Power Co. v. Public Utilities Commission
District Court, D. Utah · 1934-08-30 · cited 3×
The case involved Telluride Power Co. challenging a Public Utilities Commission order that reduced its electric rates by 10 percent. The court decided to issue an injunction staying enforcement of the order pending final hearing. It reasoned that the prior rates had produced returns averaging only 3.95 percent over eleven years and never exceeding 6 percent, which was insufficient to avoid confiscation of the utility's property under the Fourteenth Amendment; further reductions would only worsen that outcome, as Supreme Court precedent requires rates to yield a reasonable return on property used in public service while remaining fair to customers.