reproduction cost

reproduction cost
A relevant factor in determining the present value of a public utility plant for rate making purposes. According to one view, the cost of construction of a plant identical with the plant appraised; according to another view, the cost of construction of a plant of equal efficiency, capacity, and durability. According to still another view, neither the cost of reproducing the existing plant or system nor the cost replacing an existing system or plant by an equivalent one is final as determining the new or present value of a public service property, but both may be of evidential effect in determining the actual fair value thereof. 43 Am J1st Pub Util § 113.

Ballentine's law dictionary. . 1998.

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