upr000278 179

30 i l l - Present-Day Costs - represent original cost in place at date installed and increased by the ratio of that original cost to the cost as represented by the average price level for the three-year period 1947 to 1949 in­clusive* Land has been Included at present-day costs as under the original cost item* Tables A, B, C and B» in the Appendix, present in summary form the development of the capital accounts* These summary tables show the following fixed capital amounts for the year 1949* Production Water Facilities Utility Classification (LA&SLRRCo.) (LVL&WCo.) Total Amount I - Investment Cost: Land Improvements Water Rights Total i 34»9$6 765,397 30.000 1 - 712,045 # 34,986 1,477,442 30.000 F 630,333 * 712,045 9 1 ,542,428 II- Original Cost I*andL Improvements Water Rights Total # 75,900 779,254 30.000 805,525 1 75,900 1,584,779 30,000 F— m ; m 9 805,523 9 1 ,696,679 III- Present-Day Cost: Land Improvements Water Rights Total i 75 ,9 0 0 1 ,120,900 30.000 1 - 1,076,788 1 75,900 2,197,688 30,000 F }r;226rS00 11,076,788 #2,303,588 The significance of the above capital figures may now be briefly reviewed. Land: There is a total of 1230,74 acres of land classified by the (Footnote continued from page 29) This method is in contrast to that employed by the Public Service Commission of Hevada which is evidently that of the national Asso­ciation of Railroad and Utility Commissioners and provides for the full capital change (increase or decrease) upon the replacement of a plant unit, whether, th ere is a betterment or not. Under the latter method, which is spoken of as "retirement accounting", there will generally be an increase in the capital charges through re­placement of plant if there has been a general rise in the price index.