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change in the rate base operating revenues or expenses of the Water Company used by the Commission on page 21 of its decision. Schedule II shows that additional revenue of $57,017.00 above that earned under the rates prescribed by the Commission will be required to provide the Water Company with a return of 6% in the test year 1951 on the inadequate rate base of $613,919.00 fixed by the Commission. Schedule No. Ill attached, shows how wholly insuffici­ent the rates prescribed by the'Commission are when the general principles announced by the Commission with respect to the Rail­road Company rate base are followed, but the Commission’s com­putations are corrected to reflect the proper amount of capital in the rate base. The Railroad Company rate base in Schedule III is based upon an average of the true Investment Cost and true Original Cost rate bases of the Railroad Company for the year 1951. The average rate base here used, as does the Commission’s average rate base, includes only 240 acres of land but it does differ from the Commission’s base by including rights of way at the present value of $3,000.00 and excluding water rights at $30,000.00. A rate of return of 6% on this rate base is used in computing the joint facility rent allowance. The rate base of the Water Company used in Schedule III is the same as that fixed by the Commission except that $3'0,000,00 for water rights is added thereto. Except for joint facility rents the operating expenses of the Water Company are those shown on page 21 of the opinion, A 6% rate of return to the Water Company is used. The computa- -53-