upr000062 275

si charged warn not mood* la lie place lives corr©spendIng to those employed la the calculation* on the Water Utility were followed, These on the Original Cost baa© yielded an average dopreelated rat© of approximately 1*79$, or an equivalent average life of about 86 yeara* For the Water Utility with a somewhat different ©opposition of plant facilities, the average life Is not greatly different, namely 82 years. This results in an average depreciation rate of about 1#92$* On the book*, the composite life is about 64 years, and for a property that has had such extensive additions during the last few years, and with a dollar age of about 8 years, an expectancy of 45 yeare or more ie viewed as sufficiently optimistic at this tine in discounting the future. For further detail and discussion, please refer to the ip Water Utility makes main extensions to new customer* and to new subdivision* in accordance with a definite policy as provided in It* rule* and relaxation* {Buies 9 and ift), which have been approved by the Public Service Comission* In substance, the Water Company makes free extensions when such do net exceed 8© feet, exclusive of the service pipe* Beyond such distance, applicant for service must advance the estimated ooet of the extension. The monies so advanced are refunded at the rate of 80$ of the monthly water bill ever a period of 10 yeare • If not fully repaid within the 10-year period, the remaining balance becomes a donation to the Water Company. The water utility at all times has legal title to the extension and must operate, maintain, said replace such extension at Company coat * Appendix and to Tables 1 : Advances in Aid of Construction