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upr000278 61

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upr000278-061
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V unreasonable and confiscatory. However, as pointed out in the quotations above, every extension of service, which in itself is not immediately profitable, is not necessarily an unreasonable extension if there are reasonable prospects that the extension will become profitable in the future or the utility as a whole would be able to earn a fair return on its entire property. Where the reasonableness of an individual extension, which is itself un­profitable, is involved but where the utility as a whole can earn a reasonable return, the question of whether the order of the regulatory body is reasonable appears to be largely determined by balancing the needs of the public against the burden which the in­dividual extension places upon the utility as a whole. The precise question before us is not one of extension of service but enlargement of plant. There are two cases, both involving orders of the Public Utilities Commission of Idaho which deal with this precise question. Both of them very clearly state the principles involved in such cases and show that the general principles governing extensions of service are applicable to cases involving enlargement of plant. In the case of Murray v. Public Utilities Commission (Idaho) 150 Pac. 47, the Court reverses an order made by the Idaho Commission fixing rates to be charged by the Pocatello Water Company and requiring utility to make certain extensions to its system or plant. The order of the Commission requiring additions was as fol­lows : "It is hereby ordered that the petitioner begin with­out unreasonable delay, and continue without unreasonable interruption, the construction of a pipe line from Mink creek of sufficient size and capacity by which all of the presentasupply of said creek not now diverted by petitioner may be conveyed from said Mink creek to the reservoir or reservoirs of plaintiff’s system situated upon the ’bench* above the city of Pocatello so that the same may be com­pleted during the present year of 1914; the said pipe line to be 16-inch riveted steel from Mink creek to Gibson Jack creek, and from Gibson Jack creek to petitioner’s upper reservoir at a sufficient distance from the present pipe lines to be independent of them, and to be equipped with effective blow-off valves and automatic air relief,valves, and, when completed, to have an actual measured capacity of not less than 3*25 second feet from Mink creek to Gibson Jack creek, and an actual measured capacity of not less than 4*50 second feet from Gibson Jack creek to the upper reservoir.”