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\ mentioned. Schedule V attached shows the results which will be experienced by the Water Company in the test year 19^1 if a A rate of return of 6% is used in calculating the Joint I’acili- , ty Rents paid to the Railroad Company and in measuring a fair return to the Water Company on both the Original Cost basis and the average of Investment Cost and Original Cost bases. This schedule shows that if the Original Cost basis and a 6$ return are used as the test, the Water Company in the test year 1951 will suffer a net deficit of $4,402.00 and that added revenues of $79>734.00 will be required over and above the revenue from the prescribed rates in order to afford the Water Company a 6$ return on the Original Cost basis. The schedule also shows that if the average base above men­tioned is used together with a 6% rate of return, the Water Company in the test year 1951 will earn under the prescribed rates a net revenue of $1,598,00 or a rate of return on such average base of only .2 of 1$. The schedule shows that in order for the Water Company to earn a 6$ return on this aver­age base, additional revenues of $68,446.00 will be required over and above the revenue earned under the prescribed rates. Schedule VI follows substantially the basic prin­ciples which the Commission followed in constructing rate bases, but it corrects the errors which the Commission made in estimating operating expenses and in excluding capital from the rate bases. The value of only 240 acres of land and -71-