Based on the authors' nearly 50 years of managing rate litigation before state utility commissions, they believe five common sense rules are far better than the given theory in explaining the outcome of such litigation. This article will summarize the theory and then discuss the five rules. 1. Rates will be set at cost of service or whatever it is perceived the market will bear, whichever is less. 2. When Rule 1, has been satisfied, regulators will do whatever reasonably can be done to assure the financial health of the utilities they regulate. 3. When a utility needs a rate increase, the sooner it is granted in full the lower its rates will be in the long run. 4. Customer intervenors act in their self-interest, not the public interest, and, therefore, acceding to their positions will often damage the public interest. 5. It is more difficult to make rates for a financially healthy than a financially sick utility.