upr000283 212

'$240,583,68 from the Investment Cost of the properties of the Water Company as of December 31, 1950, the Commission has deducted not only the accrued depreciation on those facilities but also the entire capital cost of facilities which were con­structed during the last World War and which were amortized for income tax purposes by charges made to operating expenses in the years 1942 to 1945 as a result of which the Water Com­pany suffered substantial deficits or failed to earn a fair return during those years. The full capital cost of these fa­cilities should not have been deducted because the physical properties which were so amortized are still used and will be useful in rendering service to the public for many years to come. Furthermore, the cost of these facilities has not been recovered from, the ratepayers because in years in which the said facilities were amortized the Water Company suffered net deficits or deficient earnings, whereas, in each of the four years it should have been permitted to receive from the rate­payer the amount of the deficit plus a fair return upon its capital. To the extent that it failed to do so, the rate­payer has never been called upon to defray any part of the cost of these facilities and the effect of the Commission's decision is to assure that the ratepayers shall never repay the cost of such facilities and to charge the owners of the ’Water Company with the entire cost thereof. Not only has the ratepayer not contributed in the past to the cost of such facilities but the ratepayer has actually benefited and will