upr000163 14

9 % FIXED CAPITAL AND RATE BASE The development of the Rate Base estimates are herein set out in detail in Tables Vll-a, VII-b, VIII and IX. The corresponding tables in the November 1st Report are E, F and G. In summary totals, the rate base figures are; Water Production Company (UPRRCo.):-^/ 1950 1950 1951 Estimated Recorded Estimated Investment; Ta) With 1230.74 acres of Land $ 709,300 $ 705,300 $ 734,800 (b) With 679.42 acres of Land - 690,100 719,400 Original Cost: (a) With 679.42 acres of Land 734,700 730,600 756,400 Present Day Cost; (a) With 679.42 acres of Land 1,013,300 1,035,000 1,082,400 Water Utility (L.V.L.& W.Co.) Investment; $ 579,700 $ 568,100 $ 666,300 Original Cost 666,800 657,100 750,300 Present Day Cost 854,900 869,500 978,200 1/ Portion allocated to Water Utility operation It will be observed that two different land acreages are used under the Investment Basis for the Production Company. Reference to the November report (Pages 31 and 32) will show there are 1230.74 acres of Land carried on the books of the Production Company. In the orig­inal estimate, this was included at the recorded book cost of $34,986 under the Investment Basis. On the other two bases, where land was included at ’’present day cost”, it was concluded that but 679.42 acres was used and useful in the production of water. This latter acreage was included at $100 per acre. Under the Investment Basis, sub-(a), in this Supplemental Report, the figures are the same as in the original report - namely, on the full acreage at recorded costs. Under Basis sub-(b), the acreage has been reduced to 679.42 and priced out at the average of the recorded book figures of $28.34 per acre. The 1951 estimate reflects the estimated capital plant ad­ditions and the deduction for the increase in the depreciation reserve