Public Utility Valuation for Purposes of Rate Control

By John Bauer; Nathaniel Gold et al. | Go to book overview

CHAPTER XIII
GOING CONCERN VALUE

THE elements of valuation discussed up to this point consist of specific items of property or rights. Structures and equipment, land, intangibles and working capital all represent separate units or kinds of property. We now come to an element of value that does not represent a unit or class of property or right, but a characteristic of the entire property, or rather of the operating business as a whole. It may be recognized in valuation either by adding to the itemized property appraisal a separate amount, or by being embodied in the assignment of values to the properties in their entirety.

This element is termed "going concern value," "going value" or "going concern." It represents recognition by appraisers that the utility is a concern with an established business, an operating organization, connected customers, and in position to obtain a fair return if reasonable rates are fixed. Such a property is in a different position from a new one which possesses structures, equipment and rights and is ready to proceed with operation, but is without a seasoned operating organization and established business demonstrated as selfsustaining at reasonable rates. The one is a going concern; the other consists merely of "bare bones" of physical properties and of naked rights. Where a utility has been established and with reasonable rates is in a self-sustaining position, and has an efficient operating organization, it must be valued as a going concern, and not merely as physical items and undeveloped rights.

That the final determination of fair value must be on the basis of a going concern has been definitely decided by the Supreme Court and universally accepted in valuation procedure. The conception, moreover, is sound from the economic

-301-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Public Utility Valuation for Purposes of Rate Control
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 477

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.