upr000283 195

\ All of the land, rights of way and water production facilities are part of the plant which is required to produce, transport and deliver water into the distribution systems of the TJater Com pany and the Railroad Company. The pipe lines and power lines which serve this joint use are partly on the water-bearing lands and partly on the rights of way which are located outside the water-bearing lands, but regardless of their location they are all in the capital base of the joint facilities. The water-bear ing lands upon which they are located are included in the rate base at a very conservative present cost of $100.-00 and the rights of way should be included at their present cost of $3,000.00. The Commission reduced the acreage of water-bearing land in the rate base but the location of the excluded land is unknown. If any power lines or pipe lines cross the excluded land, the value of additional rights of way should be included in the base. This points up again the necessity of having a definite decision on the land question. Additions in the year 1951. • Another serious defect in the rate base fixed by the Commission for the Railroad Company is that it excludes entirely Capital Costs already incurred in the year 1951 and those which will hereafter be incurred in that year. It must be borne in mind that the function of the Commission in this case is to fix rates for the future and not for the past. The year 1951 was “V -41-