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Transcription
provide approximately $25,112.00 additional revenue in the test year 1951. However, they will provide only approximately $8,370.00 additional revenue in the actual calendar year 1951, and if operating expenses continue to increase faster than revenues as they have in the past three years, the prescribed rates will not provide an increase in net revenues of $25,112.00 before income taxes in the full calendar year of 1952. In fact, the rapidly increasing operating expenses may entirely wipe out in 1952 the net affect of the prescribed increase. The relative increase in operating expenses over a three-year period is shown in the following table. WATER COMPANY Year Revenues Operation & Maintenance General & Adm. Expense Amount - Percentage of 1949 Amount - Percentage of 1949 1949 $202,390 (Ex. A. Table L) (Actual) 100 $61,869 (Ex. A. Table L) (Actual- Adjusted) 100 1950 $222,145 (Ex. B. Table la) (Actual) 109 $89,254 (Ex. B. Table la) (Actual) 144 1951 $242,400 (Ex. A Table L) (Estimated) 119 $93,540 (Ex. Q) (Estimated) 151 Your petitioner knows that this tendency is contin-
