upr000274 185

Investment in Facilities Original lines (both Railroad and LVL&tt) were eon~ strueted some 40 years ago, principally of redwood star© pipe, stoat of the Railroad lines being located chore ground. During late 1950*s and early 1940*8, the redwood stare lines were replaced with cast Iron, and incident to replacement only the betterment cost of material was capitalised, all labor, including cost of placing lines underground and the current price of redwood stave pipe being charged to expenses• This undoubtedly tends to reflect a low investment as compared with retired and replaced basis* Amortisation During the War Period, the LVLSWCo ? amortised ap­proximately #160,000 worth of new improvements which were con- J sidered essential to the war effort. The entire cost of suoh facilities rests in Investment Account. Subdivision Improvements During past several years, pursuant to Rule 9-A, we have constructed extensions to and within subdivisions under contracts with the subdividers, providing that Subdivider advance cost of the extension, subject to refund of 5<$ of the revenue derived from sale of water to consumers within the tract# The J amount of such deposits approximates 5210,000, and only a small portion lias been refunded to date. It is doubtful if more than 50$ of the total deposits will be refunded. The entire cost of the extensions has been capitalized. •1