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DEC 111979 BOOK 42 PAGE 25 <br />the total adjusted flow against the design capacity of the <br />plant, we established that the sewage treatment plant was <br />43% used and useful and that the remaining 57% would be held <br />for future use. � <br />As we now look at the sewage collection system, the following <br />concepts were used to establish the used and useful portions <br />for rate base. <br />All force mains will be considered used and useful. <br />The collection of mains will be considered on the basis of <br />housing density with adjustment for the marginal reserve <br />factor. <br />To establish the dollar amount for the sewer mains we used <br />the weighted historical cost for the various size mains. <br />Housing density analysis is made by comparing the number of <br />actual connections with the number of potential connections, <br />for the test year we had 278 actual connections and 481 <br />potential connections. This gives us a housing density <br />percentage of 57.80. Now, when we apply the marginal reserve <br />of 5.6% we have established a used and useful portion of the <br />collection mains of -61.1% with the remaining 38.9% to be <br />considered held for future use. <br />The actual dollar values for the used and useful analysis <br />are contained in Exhibit 4 (a). <br />10. Now, Mr. Vaughn with regard to the overall operation of <br />the utility office and plant: <br />a. (Q.) Have the plant and the facilities of the utility been <br />maintained and operated by certified operators? <br />(A.) Yes, both the water and sewer plants have been <br />maintained and operated by certified operators, as <br />outlined by the Department of Environmental Regulation. <br />