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upr000283 162

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upr000283-162
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    % inadequate and contrary to the evidence as above stated, and should be at least §138,181.00 higher. 2. The 6% rate of return allowed the Water Company is insufficient and should be at least 6-1/4$. 3. The operating expense allowances of the Water Company are too low to the extent of §56,725.00 (Sched­ule IV p. 1). A portion of the deficiency in the oper­ating expenses of the Water Company is created by the deficiency and error of §36,654.00 in the joint facility rents allowance made by the Commission. This in turn results from the deficiency and error of more than §311,000.00 in the Railroad Company rate base fixed by the Commission, the failure of the Commission to use a 6-1/4$ rate of return in lieu of a 6% return, and the errors made by the Commission in computing the deprecia­tion and income tax charges reflected in the joint facility allowance. 4. The Commission made a mathematical error of §11,118.00 in computing the revenue required to pay the Water Company the return which the Commission intended to allow it after federal income tax payments. I, ? SUMMARY OF R5SULTS The overall results of the Commissions decision can be summarized as follows: 1. The rates prescribed by the Commission should -8-