upr000062 195

Estimate of the Lowest Increase in OrecsTrcvcnuc i&aTMfibt be mowed Las Vegas Landand Wafr Company’"* ——~ fey1 =3, Public Service CoraiiTaalon of 8wrady A critical review of tbs estimates in tbs report has been made for tbs purpose of determining shat 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 figured* that basis will be used as most adverse to the inter- ests of the Water Company and the one most favorable to the water users. The results expressed in rate of return and gross revsnus deficiency are set forth in TAbles I, XX and XXX at­tached. The adverse factors as herein adjusted for, may be stated as follows t A Adverse Pastors Resulting in a Reduction in Capital and Rate' Base 1 • hand Included at original eost instead of Present day price (#75,000 • #19,521) 2 • Loss in write-up under "Retirement Accounting* Production Company (page 52) Water Utility * * 5 * Exclusion of unrefunded construction Advances (#257,145 - #172,000) 4 * Exclusion of amortised plant in excess of normal depreciation on such plant (#100,485 * #18,487) Total Adverse oapital deductions B * Adverse Operating Expense Deduction Reduction # 56,579 15,858 91,616 65,145 141,996 #589,192 Administrative and General. Total Production Company # 8,624 2,156 Water Utility 45,500 4,050 Total Adverse Expense Deductions f—97208