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upr000063 122

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upr000063-122
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    N of rights of way is included in the Railroad Company rate base. A 6% return to each company is assumed. Schedule VI shows that the deficiency in revenue under the prescribed * 1 rates is $63,593.00. In other words, the deficiency under the former rates was $88,705*00. This is a very significant exhibit. It shows that if the Commission had followed the evidence in the case, instead of ignoring it, the Commission, following the general methods used in its opinion, would have been required to allow the proposed rates or rates sub­stantially the same as the proposed rates to go into effect. (See Exhibit A where the additional revenue under the pro- * posed rates is shown to be $90,813.00). The calculations which we have just discussed are the calculations which disclose the overall deficiency in the Commission’s decision. They show that the additional revenue authorized by the Commission’s decision is insigni­ficant compared with the further revenue which is still required to afford the Water Company a fair return and to afford the Railroad Company Joint Facility Rents computed at the same rate of return as is used for the Water Company. Depending upon the rates of return and the rate bases used, the existing deficiencies in revenue under the prescribed rates range from $63,593,00 a year to $86,858.00 per year. 72-