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upr000274 74

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upr000274-074
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\ facilities in the rate base. He stated that he did not think it would be proper to include any further deprecia­tion of such facilities in the operating expense charges, and Messrso Hulsizer and Barnes agreed. D. REVENUES I - Miscellaneous Revenues There was no particular discussion of this item, and it is our understanding that this information will be furnishedo II - Refunds for Advances for Main Extensions Although this item does not refer to capitalization of main extensions financed by advances from subdivid­ers, it brought up considerable discussion concerning the inclusion of advances in the rate base. Messrs. Hulsizer and Barnes said they did not see why the ad­vances should be excluded from the rate base. Mr. Wehe pointed out that this was a very troublesome question, and that it had been the uniform practice of commis­sions in this area, particularly the California Commis­sion, to exclude from the rate base unrefunded advances. He also advised them that Commissioner Allard in our recent informal conference had expressed himself quite definitely on this subject. He advised them that we were working up some data to justify including at least a part of the advances in the rate base. Mr. Hulsizer said that since such facilities were owned by the Com­pany and used to provide water service, we were entitled to earn a return on them. He pointed out that in a condemnation case or a sale we would be entitled to the value of the facilities whether they were constructed at our cost or donated. We agreed with him that that was the rule in condemnations, although the value of facilities used for rate making purposes it not neces­sarily the same as the value for condemnation. Mr. Hul­sizer expressed the view that we should keep in mind the possible sale or condemnation of our property and not to take any position in the rate case that would adversely affect our position in such proceedings. We agreed with him that that was an important consideration and that we had it in mind. Other Miscellaneous Matters Discussed; I. Mr. Wehe said that he would like to have a general