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SUMMARY OP OPERATIONS UNDER PRESENT RATES PRODUCTION FACILITIES AND WATER UTILITY OPERATED AS INTEGRATED WATER WORKS 1951 Estimated Investment Original Present Cost Cost Day Cost TOTAL OPERATING REVENUES $ 242,400 1 242,4001 242,400 OPERATING EXPENSES Production (38,100 x .9767) 37,212 37,212 37,212 Distribution 41,200 41,200 41,200 Administrative and General Expenses Production - Supervision 7,423 7,423 7,423 Management expense 3,003 3,003 3,003 Distribution - Las Vegas office 36,340 36,340 36,340 Rate case 4,600 4,600 4,600 i Management expense 9,600 9,600 9,600 Office rent 1,800 1,800 1,800 Subtotal - Admin. & General 62,766 62,766 62,766 Depreciation Expense Production facilities 10,783 14,539 21,395 Distribution facilities 12,252 17,369 22,414 Taxes - State, county and city Production 840 840 840 Distribution 22,165 22,165 22,165 Federal - Other than income (Distr.) 675 675 675 Income 20,119 15,947 10,354 Total Operating Expenses 1l 208,012 !1 212, VIS 1> Net Available for Return |1 34,388 6 29,687 i5 23,379 Rate Base - Production |3 716,300 '!j| 753,300 !.1,078,600 Distribution 673,100 757,100 985,000 Combined Rate Bases &T,389,400 11,510,400 $2,063,600 Rate of Return 2.47% 1.96% 1.13% REQUIRED GROSS OPERATING REVENUE Investment Original Present Cost Cost Day Cost Return at $ 86,837 S§ 94,400 | 128,975 Federal income tax 66,629 73,336 103,997 Operating expenses 187,893 196,766 208,667 Total - Required Gross Revenue $ 341,359 $ 364,502 $ 441,619 Gross Revenue (Present rates) 242,400 242,400 242,400 Required Increase - Amount 98,959 122,102 199,219 Per Cent 40.82 50.37 82.19 Note: Under assumed consolidated operation, the Federal income tax burden is greater and hence the required increase in revenue to yield a given return is likewise greater. The tax burden is greater for the reason that the surtax net income credit is applied twice (one to each property) when treated as separate companies, while under the consolidated operation, but one surtax credit is deductible.