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2. THE RATE RASE OF THE RAILROAD COMPANY AND THE JOINT FACILITY RENTS DETERMINED BY THE COMMISSION ARE INSUFFICIENT TO THE EVIDENCE.. AND CONTRARY The Plant Facilities. The present case is an example of the unfortunate re­sults which follow when a Commission disregards the fundamental principles which have "been announced in the foregoing decisions and many other Court decisions of similar import. By going out­side of the record in this case and disregarding the undlsouted evidence which was offered by the Water Company, the Commission has fixed a rate base for the water production properties of the Railroad Company which is entirely erroneous and which we are certain no Court will allow to stand. One of the important elements in this case is the amount which the Water Company is required to pay each year to the Rail­road Company for the services performed by the Railroad Company in producing, transmitting and delivering to the Water Company the water which the Water Company is permitted to appropriate and put to beneficial use under certificates of appropriation issued to the Water Company by the State of Nevada. We do not contend that the basic procedure adopted by the Commission for testing the reasonableness of the joint facility rents paid by the Water Company to the Railroad Company was improper. It is evident that the Commission believes that the Water Company is entitled to pay to the Railroad Company, and charge as an opera­ting expense, its proportion, based upon the total water con­sumption of the Water Company and the Railroad Company, of the -27-