upr000278 37

Estimate of the Lowest Increase in Gross' Revenue that Might be Allowed Las Vegas Land and Water Company Public Service Commission of Nevada. A critical review of the estimates in the report has been made for the purpose of determining what might be looked upon as the very minimum increase in gross revenue that the Commission could allow. Since the "Investment Basis" results in the minimum capital as well as the basis that follows the recorded book figures, that basis will be used as most adverse to the inter­ests of the Water Company and the one most water users. favorable to the The resultsNexpressed in rate of return and gross rteavcheendu.e deficiency are set forth in Tables I, II and III at­stated as Tfholel oawdsv;erse factors as herein adjusted for, may be A - ACdavpeirtsael Faancdt Roarts e ReBassuelting in a Reduction i: 1 - Land included at original cost instead present day price ($75,900 - $19,321) 2 - Loss in write-up under "Retirement Accounting" Production Company (page 32) Water Utility " " 3 - Exclusion of unrefunded construction Advances ($257,143 - $172,000) 4 - Exclusion of amortized plant in excess of normal depreciation on such plant ($160,483 - $18,487) Total Adverse capital deductions B - Adverse Operating Expense Deduction Administrative and General, Total Production Company $ 8,624 Water Utility 45,500 Total Adverse Expense Deductions n of Reduction $ 56,579 13,858 91,616 85,143 141,996 $389,192 f* 24,,105560 I 6,206