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% 1 - F op the common 5/8” water meter, an installation cost of $50.00 for material and labor has been estimated with higher costs for the larger size meters. On this basis an over-all capital ex­penditure of $250,000 is developed. 2 - For commercial expense of reading the meters and making out the billing, a gross allowance of $2 .0 0 per meter has been used, and the over-all amount resulting therefrom has been adjusted downward to give credit for existing commercial expense costs. The following tabulation gives the summary result and shows the following under present level of revenuesj With Federal Income Tax Gross Revenue 58$ $ 214,000 $ 45$ , 214,000 Operating Expenses 249,874 259,645 Net Available for Return |— $ Rate Base Depreciated $1,109,000 $1 T,14059,,0-60'403.: ( ) Red figure Revenue Deficiency to Yield 6 l$ Gross Revenue $ 148,785 $ 172,964 Per Cent Increase Required 69.5$ 80.8$ Thus, the installation of meters, while probably conserving up to 50$ of the water now consumed, will increase the gross revenue requirements over present operations between $45,000 and $50,000 a year, depending on the federal Income tax rate that may be in effect. This is equal to between $5.40 to $6.00 per year per customer on the average. This comparison is with present operations after an in-crease in revenue of approximately $102,000 to $124,000 annually. The yearly cost per customer, on the average, from present level earnings would fall between $18.00 and $21.00. The present 2