                                 CODE OF VIRGINIA

TEMPORARY REDUCTION OF RATES (§ 56-242)

Whenever the Commission, pending an investigation had upon its own motion, or
upon complaint, is of the opinion and so finds after an examination of any
report or reports, annual or otherwise, filed with the Commission by any public
utility, together with any other facts or information which the Commission may
acquire or receive from an investigation of the books, records, or papers, or
from an inspection of the property of such public utility, that the net income
of such public utility, after reasonable deductions for depreciation and other
proper and necessary reserves, is in excess of the amount required for a
reasonable return upon the value of such public utility&#8217;s property, used
and useful in rendering its service to the public, and if the Commission is of
the opinion and so finds in such cause that a hearing to determine all of the
issues involved in a final determination of rates of service will require more
than ninety days of elapsed time, the Commission may, in case of such emergency,
enter a temporary order, after not less than ten days&#8217; notice to such
public utility of its contemplated action and affording to it reasonable
opportunity to introduce evidence and to be heard thereon, fixing a temporary
schedule of rates, which order shall be forthwith binding upon such public
utility. But the Commission&#8217;s power to order reductions in rates and
charges of any public utility by means of such a temporary order, is limited to
reductions which will absorb not more than the amount found by the Commission to
be in excess of the amount of income, as determined by the Commission, necessary
to provide a reasonable return on the value of the property of such public
utility as found by the Commission as aforesaid.

HISTORY: 1934, p. 365; Michie Code 1942, § 4071a.