In this title, “just and reasonable rate” means a rate that: does not violate any provision of this article; fully considers and is consistent with the public good; and except for rates of a common carrier, will result in an operating income to the public service company that yields, after reasonable deduction for depreciation and other necessary and proper expenses and reserves, a reasonable return on the fair value of the public service company’s property used and useful in providing service to the public.

This section does not apply to small rural electric cooperatives. The Commission shall have the power to set a just and reasonable rate of a public service company, as a maximum rate, minimum rate, or both. The Commission shall issue an order, including the rate set under subsection (b) of this section. The Commission shall serve the order on each affected public service company.

In setting just and reasonable rates under this title, the Commission may not discourage the use of employee stock ownership plans by public service companies by denying to the public service companies the full benefits of investment tax credits provided in connection with these plans by the Internal Revenue Code. A public service company may not charge off lobbying expenses against its ratepayers.