upr000163 16

11 RESULTS OF OPERATION The revenue, expense and rate base figures are brought to­gether in Tables I-a, 1-b, II and III, where the net revenue available for return is computed and, in addition, the increase in the gross revenue from water sales to afford a return of 6$j£ is set forth. A review of these summary tables will show that, in all cases, Applicant Las Vegas Land and Water Company, failed to meet Its costs of operation, with no earnings available for a return on its plant facilities represented by the capital employed in rendering the water services to its customers. The Summary Results for the Estimated Year 1951 are: Investment Original Present Day Cost Cost Cost Gross Revenue §242,200 Total Expenses §242,200 §242,200 254,532 267,887 ,318,247 Net Revenue §(12,334) §(25,687) §(76,047) Rate Base §6M,3"00 |7HT730U |978",5'00 Required Return at 6t$> § 41,644 § 46,894 § 61,137 Federal Income Taxes. 26,552 31,208 43,838 Operating Expenses 254,534 267,887 :318,247 Required Gross Revenue Less - Gross Revenue, §322,730 §345,989 §423,222 Present Rates 242,200 242,200 242,200 Required Increase in Gross Revenue § 80,530 §103,789 §181,022 Thus it is seen that the required increase in water rates ranges from a minimum of §80,530 on the Investment Basis, to §181,022 on the Present Day Cost rate base. Further, that the Original Cost Basis calls for an increase in gross revenue of §103,789. Reference to the November report (Table M) and to the Letter of Transmittal under the Original Cost basis shows a developed Increase requirement of §94,307. The proposed rates in the November report (Table R) and submitted for filing with the Public Service Commission of Nevada, were estimated to yield an increase in the annual gross revenue of approximately this amount.