upr000279 82

#2 Mr. Win. Reinhardt Present Rates Investment Cost Original Present (a) (b) Cost Day Cost Net Revenue Rate Base Rate of Return Revenues Expenses $242,200 $242,200- $242,200 $242,200 260,097 254,534 267,887 318,247 “TIV, 8S7)~T1‘2‘, 3 3 4 rW ) “ {y 6 »047) 666,300 666,300 978,200 ( ) Red figures Summary of Defiolencies in Return Investment Cost Original Present (a) Cost Day Cost Estimated'Gross Revenue Needed $328,293 $322,730 $345,989 $423,222 Estimated Gross Revenue (a) With 1230.74 acres of land considered In computing Joint Facility Rents (b) With 679.24 acres of land considered in computing Joint Facility Rents It is thus seen that the estimated gross revenue deficiency ranges from $80,530 on the Investment Basis to $181,022 on the Present Day Cost estimates, with $103,789 on the Original Cost. The latter figure compares with $94,307 developed In the November 1st study. tween the two studies is occasioned in large measure by a resumption In the inflationary trend of rising costs of operation which the whole nation is experiencing. ed rates to yield an increase in customer billing of approximately $94,486 a year. Such rates have also been filed with the Commission. increased, as shown in this supplemental study, and will probably continue to increase beyond what is herein estimated, the question naturally arises as to whether further increases in rates be sought at this time. decide., after weighing all factors, it is my recommendation that consideration be given to immediately securing the increase initial” ly sought and at a later date obtain such added amount as conditions then warrant.. under Present Rates Deficiency in Gross Revenue Per Cent Increase Needed 242,200 242,200 242,200 242,200 86,093 80,530 103,789 181,022 35.55 33.25 42.85 74.74 This further Increase in the revenue requirement as be In the November 1st report, Table R sets forth the propos Inasmuch as costs of supplying water service have further While a decision on this matter is one for management to