upr000279 95

11 RESULTS OF OPERATION The revenue, expense and. rate base figures are brought to­gether in Tables I-a, I-b, II and III, where the net revenue available for return is computed and, in addition, the increase in the gross revenue from water sales to afford a return of 6 ^ is set forth. A review of these summary tables will show that, in all cases, Applicant Las Vegas Land and Water Company, failed to meet its costs of operation, with no earnings available for a return on its plant facilities represented by the capital employed in rendering the water services to its customers. The Summary Results for the Estimated Year 1951 are: Investment Original Cost Present Day Cost Cost Gross Revenue Total Expenses Net Revenue Rate Base Required Return at Federal Income Taxes. Operating Expenses Required Gross Revenue Less - Gross Revenue, Present Rates Required Increase in Gross Revenue #242,200 #242,200 254,552 267,887 (12,334) #(25,687) 666,300 #7315',"3 O'O # 4216,,654542 254,554 £522,750 242,200 \ 4361,,829048 267,887 £345,989 242,200 80,530 £103,789 #242,200 .318,247 #(76,047) #9757200 $ 6413,,185378 318,247 $423,222 242,200 $181,022 Thus it is seen that the required increase in water rates ranges from a minimum of #80,550 on the Investment Basis, to $181,022 on the Present Day Cost rate base. Further, that the Original Cost Basis calls for an increase in gross revenue of $103,789. Reference to the November report (Table M) and to the Letter of Transmittal under the Original Cost basis shows a developed increase requirement of $94,507. The proposed rates in the November report (Table R) and submitted for filing with the Public Service Commission of Nevada, were estimated to yield an increase in the annual gross revenue of approximately this amount.