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% Is given to the rate of return on that base. (April Tr. 80) There is no doubt that the rate of return and the rate base are interdependent. Both must be high enough to provide in the end satisfactory earnings to the utility. Mr. Wehe testi­fied at some length as to the considerations which led him to the conclusion that not less than 6-1/4% would be a fair and reasonable rate of return if the Original Cost rate base were used. (April Tr. 115 to 122) We are not going to repeat his discussion here, but we do wish to point out that to compen­sate the Water Company for the risks which he mentioned, and to enable appropriate payments to be made upon the capital structure which, he discussed with a small retention to add to corporate surplus, additional revenues not less than those which would be provided by the rates proposed by the Water Company will be required. Such revenues cannot be derived by the application of a rate of return of 6% to a rate base at less than true Original Cost. If consideration were given to present values which are higher than the Original Cost, a 6% rate might provide a satisfactory level of earning. However, the evidence in this case conclusively proves that a 6-1/4% rate of return is not greater than is required to provide satisfactory earnings upon the true Original Cost rate base. Ve urge the Commission to fix rates which will provide revenue at least equal to a 6-1/4% return on this rate base. - 6 1 -