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V arrived at from the evidence before they are averaged. The Commission was right in recognizing that a proper rate base should give recognition to values higher than Invest­ment Cost. However, under present conditions full Original Cost is the very minimum basis which can be justified. Although the rates which the TJater Company proposed were not sufficient to provide a fair return on a rate base at Present Value, it is our belief that the present economic conditions justify a Commission in giving great weight to present values as compared to Original Cost. After all, Original Cost simply represents the bare bones cost to the utility of the property at the time it was first de­voted to public service and does not reflect any increase in plant value since that time. The Commission has discretion to fix a rate base in the zone between cost and present value. ?Je think that a fair and enlightened attitude on the part of any regulatory body today requires it to give weight to the upward spiral of prices which all of us face. Neither individuals nor corporations can successfully transact business today on the basis of yesterday*s price levels. In recognition of this fact, a number of Courts and Commissions have recently announced middle of the road courses in fixing rate bases which we strongly urge this Commission to adopt. The general tenor of these decisions is that in times of inflation like the present, a rate base should not be fixed on the basis of Original Cost because that would be the very lowest base which could be justified and that likewise, it should not be fixed alone on the basis of reproduction cost new -45-