PENNSYLVANIA
PUBLIC UTILITY COMMISSION
Harrisburg, PA. 17120
Public Meeting held September 29, 1988
Commissioners Present:
Bill Shane, Chairman
William H. Smith, Vice Chairman
Linda C. Taliaferro
Joseph Rhodes, Jr.
Frank Fischl
Affiliated Interest Agreement between Oneida
Water Company and VLCC, LTD., d/b/a Valley G-880113
Construction Company
OPINION AND ORDER
BY THE COMMISSION:
On August 31 1988, the Oneida Water Company ("Oneida")
and VLCC, LTD. ("VLCC"), d/b/a Valley Construction Company
("Valley") filed an Affiliated Interest Agreement pertaining
to construction, maintenance, equipment, and engineering services
and expertise provided by Valley for Oneida. Charges shall be
based upon time records, invoices, or other data, as applicable.
Costs will consist of labor, goods or material, plus a reasonable
allowance for overhead, administrative cost, and profit.
Oneida is a public utility providing water distribution
services or availability within portions of Black Creek and Hazle
Townships in Luzerne County, and East Union and North Union Town-
ships in Schuylkill County, Pennsylvania. VLCC is a Pennsylvania
corporation which has specific expertise in the business of con-
struction and engineering. All of the issued and outstanding
capital stock of both VLCC and Oneida is owned by C.B.G. Limited,
a Pennsylvania Limited Partnership.
Investigation and analysis of this Affiliated Interest
Agreement indicates that the terms and conditions appear to be
reasonable and consistent with the public interest. However,
approval of this Agreement does not constitute a determination
that the associated costs are reasonable or prudent for purposes
of determining just and reasonable rates.
It appears that the Affiliated Interest Agreements
is reasonable and consistent with the public interest; THEREFORE,
IT IS ORDERED:
That the Affiliated Interest Agreement between the
Oneida Water Company and VLCC, LTD. is hereby adrroved.
BY THE COMMISSION
/s/
Jerry Rich
Secretary
(SEAL)
ORDER ADOPTED: September 29, 1988
ORDER ENTERED: September 29, 1988
|
|