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fta3Jl rotor® should bo allows the two companies for water~rl#it vain*. Koto Base? fhs capital, base figures upon which Ms§ two companies soak to earn a fair return are cot up on the asms three baaes that wore developed for the fi*ed capital estimates. flaed capital for the years 1949 and 1990 have been used from *hl®h has been deducted the depreciation reserve and/or the r * reserve requirement computed on the straight line basisj and an estimate of that peart of the advance# in aid of construction ((donations) )thet will be refunded! plus Waking Capital. fables 9, F and a, in the Append!*, show the development of the rate base estimates* fhese may be summarised for the year 1900, as followsi 9-original Cost 764,700 1.05 359,000 1.16 1,405,700 1,09 5-freseat-Day Costl044,400 1,41 369,300 1,67 1,907,000 1.48 In the development of these rate base figures, only recognised methods have been employed* these will now be briefly reviewed. the capital estimates have already been presented* Such capital bases have been reduced for depreciation that has accrued as represented by tiae retirement reserve or an estimate of that reserve. Depreciation Reserve Resatosmeate? bnder this heading will be discussed both the retirement reserve and the amortisation of defense plant capital. tn the development of the rate base estimates the average ?ve capital, fables 1, F & 3, in which the rate base figure# are