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continue to benefit from the fact that such facilities were amortized in the years mentioned because no further deprecia­tion on such facilities has been charged in the operating expenses or will in the future be charged in the operating '?V expenses pf the Water Company. If the undepreciated portion I of the defense facilities is allowed to remain in the rate base, this benefit will continue to accrue to the ratepayer and also the Water Company will be allowed to earn a fair return upon the undepreciated cost of such facilities which are actually used in serving its customers, which it right­fully should be allowed to do. The action taken by the Commission is contrary to the customary practice which has been adopted by regulatory | commissions with respect to such defense plant facilities * which were amortized by public utilities for income tax pur­poses during the last war. Witness Wehe referred to two decisions of the California Railroad Commission within his personal knowledge involving the San Diego Gas and Electric Company and the Pacific Gas and Electric Company wherein rate increases were granted and wherein the California Com­mission made no deduction from the rate bases because of the fact that defense plant facilities had been fully amortized ? in wartime years even though neither one of said companies had suffered deficits, as had the Water Company here, in the § years in which such amortization charges were made. In view of the foregoing, we submit that the Com- V -59-