Valuation of company property
Sec. 26. (a) On or before June 1st of each year, the department of
local government finance shall determine the just value of the
property of each public utility company. Except for railroad car
companies, the department of local government finance shall
determine that just value by first determining the approximate unit
value of each public utility company. The value of the distributable
property of a public utility company, other than a railroad car
company, equals the remainder of:
(1) the unit value of the company; minus
(2) the value of the company's fixed property.
The value of the distributable property of a railroad car company
equals the value of all of the company's distributable property
multiplied by the adjustment factor provided under section 12 of this
chapter.
(b) In order to determine the unit value of a public utility
company, the department of local government finance may consider:
(1) book value;
(2) cost of replacement or reproduction, less depreciation;
(3) cost of establishing and developing the business;
(4) amount and market value or sales price of outstanding
securities;
(5) valuations determined by another governmental agency or
indicated by a judicial decision, including but not limited to
determinations made for rate making purposes;
(6) statistics and reports prepared or filed by the company;
(7) statistics and reports prepared by another governmental
agency or by a private organization if the organization is
considered reliable by investors and investment dealers;
(8) earnings capitalized at a reasonable rate; and
(9) any other information which the department considers
relevant.
(Formerly: Acts 1975, P.L.47, SEC.1.) As amended by Acts 1981,
P.L.66, SEC.6; Acts 1982, P.L.43, SEC.3; P.L.59-1985, SEC.5;
P.L.90-2002, SEC.77.
Last modified: May 28, 2006