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Transcription
Memo: It appears to me that the number of users that may be considered as sufficient to warrant the refund referred to in proposed Rule 9-C may be determined by one of the two following methods: 1. Based on an adequate return on the investment, as for example 6%. But under this method the cost of water would affect the return on investment, and the last public hearing reflected that the cost of water exceeded the revenues for the period considered. Same is true of 1941, 2. Based on a certain number of houses per block of water main extension. Assuming this coat to be $10GD per 400 ft. block, a minimum of 8 houses to the block would return 19.2$ gross on investment, not Including water cost. A. M. F.
