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feet of water for the year. During the year 1948, the company pro­poses to make additions to its present water system in the amount of $21,950.00, Property to be retired will amount to approximately $5,600,00 or a net increase to the capital investment account of $16,350,00. CONCLUSIONS The points to be determined in this pro­ceeding are: the rate of return to the company on the value of the prqperty devoted to the public in rendering utility service, and the reasonableness of the rates charged for said service. The electric plant was purchased on July 31, 1944, at a cost of $194,649.15. Additions and betterments made since date of acquisition -until December 31, 1947, amounted to $156,872,85. Property withdrawn from service during the same period totalled $33,492.56, leaving a net cost of plant of $318,029.44. After deducting the total accrued deprecia­tion amounting to $39,926.19, the net value of the electric plant is $278,103.25. By adding to the latter amount the sums of $15,872.66 for materials and supplies and $8,978.92 for working capital, we obtain a total of $302,954.83 as the net rate base for rate-making purposes. The utility received a rate of return on its net rate base of 7.88$ in 1945; 9.16$ in 1946 and 7.73$ in 1947. The company proposes to spend $28,315.00 for new extensions and betterments during the year 1948, Construction of a line into Paradise Valley is to commence in 1949, the total cost of which is estimated at $1^0,000.00. Taking into consideration these additions to the capital account, the company will realize a rate of return of approximately 6,16$. The water department was bought at a cost of $127,311.94. Improvements to the plant from July 31, 1944, to December 31, 1947, amounted to $36,144.18. Property retired totalled $16,318,02. De­preciation taken during the 3 5/12 years amounts to $11,398,20, making the net value of the plant $135,739.90. -8-