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will be made (not included) wherein the operations will be merged* There should be no changes in the end results. The increase in gross revenue from water sales to yield rates of return of 6# and 6-3/4# are: The year 1949 la merely set forth, for basis of comparison, inasmuch as the estimated results for the year 1950 should be eon-trolling. A return of 6# Is set up as showing the very minimum that might be obtained. It is believed that a 6-3/4# should be requested in the Application. DISCUSSION: Capital Base: The accompanying Table A sets forth the development of the rate base estimates. As will be seen, the "Recorded" figures repre­sents the Investment as per books; "Adjusted" reflects the increase due to "Betterment" adjustment. The "Original Cost-1950" is the same as the "Adjusted 1949" figures,' increased by one-half of the estimated net additions to plant for 1950 plus an adjustment for land. Of the 1230-odd acres of land, 400 have been included as opera­tive and at a present market value of $330 per acre. The last estimate, namely that headed "R.C.N.", is the Omaha Office*s estimate of the present day replacement cost, with land in­cluded as noted above. 1949 1950 Return Recorded Ad justed recr:.gost-— w :g’:#: — — — lm Mil Ml .? 6# # 28,400 $ 40,385 14.3# 20.3# I I A I W M * d-£. A A A Pc. of Present Revenue 6-3/4# Pc. of Present Revenue 31.6# 40.2# All of these Capital bases have been depreciated inasmuch as the straight line method is used in accounting and for setting up the