(a) The rates and charges for the services rendered and required shall be reasonable and just to both the utility and the public. Every utility shall be entitled to such just and reasonable rates as will enable it at all times to fully perform its duties to the public and will, under honest, efficient and economical management, earn a fair net return on the reasonable value of its property devoted to the public service. For the purpose of fixing rates, such reasonable value of a public utility's property shall be deemed to be the original cost thereof, less the accrued depreciation, as of the most recent date available. In any determination of the commission as to what constitutes such a fair return, the commission shall give due consideration among other things to the requirements of the business with respect to the utility under consideration, and the necessity, under honest, efficient and economical management of such utility, of enlarging plants, facilities and equipment of the utility under consideration, in order to provide that portion of the public served thereby with adequate service.
(b) Notwithstanding subsection (a) or any other provision to the contrary, the commission retains its authority to consider and adopt alternative methods of regulation of a utility as defined in Section 37-1-30 to establish rates and regulations for services furnished by the utility that are fair, just, and reasonable to the public and that provide fair, just, and reasonable compensation to the utility for the services.
(1) For the purposes of this subsection, the phrase "alternative methods of regulation" means the regulation of utility rates and service regulations by methods other than a determination of net return on a predetermined rate base.
(2) After June 20, 1995, any proceeding to adopt an alternative method of regulation as defined in subdivision (1) shall be initiated by application of the utility seeking such alternative regulation, by the commission on its own motion, or by the Attorney General as provided in Section 37-1-16.
Structure Code of Alabama
Title 37 - Public Utilities and Public Transportation.
Chapter 1 - Public Service Commission.
Article 2 - Powers and Duties Generally.
Division 2 - Rates and Other Regulations.
Section 37-1-81 - Schedules of Rates or Service Regulations.
Section 37-1-82 - Production and Inspection of Books or Records, etc., of Utilities.
Section 37-1-84 - Filing and Contents of Complaint.
Section 37-1-85 - Time and Place of Hearing.
Section 37-1-86 - Notice and Process.
Section 37-1-87 - Intervention in Proceedings Before Commission.
Section 37-1-88 - Right of Party to Be Heard in Person or by Attorney.
Section 37-1-90 - Separate Hearings on Several Matters.
Section 37-1-92 - Depositions of Witnesses.
Section 37-1-93 - Fees of Witnesses.
Section 37-1-94 - Time Allowed Commission for Making Decision.
Section 37-1-95 - Order Requiring Discontinuance or Rectification of Violation.
Section 37-1-96 - Necessity for Hearing Prior to Order Affecting Rate or Service.
Section 37-1-97 - Order Fixing Reasonable Rate.
Section 37-1-98 - Certified Copies of Orders.
Section 37-1-99 - Rates and Orders of Commission Deemed Prima Facie Reasonable and Valid.
Section 37-1-100 - Effective Date of Orders.
Section 37-1-101 - Modification of Orders.
Section 37-1-102 - Record of Proceedings.
Section 37-1-103 - Substantial Compliance by Commission With Requirements of Title Sufficient.
Section 37-1-104 - Power of Circuit Court to Compel Compliance With Commission Orders, Etc.