Laserfiche WebLink
1 31, 1978. Page 1 of 2 shows that the average rate base invest - <br />2 ment for water operations during the test year was $208,000.00. <br />3 That investment was made up of the following components. <br />4 Utility plant and service of $341,000.00, which represents the <br />5 total original cost of all assets included in the water <br />6 operation. This is reduced by the accumulated depreciation on <br />7 that investment of $124,000.00. Contributions in aid of <br />8 construction reduces the rate base by $17,000.00. This <br />9 represents those dollars paid by the customers at the time <br />10 they initially connect to the system. These connection charges <br />11 help defray the cost of connecting new customers to the system <br />12 and contribute to lower monthly rates by reducing the earnings <br />13 base of the utility. The authority for the current level of <br />14 connection charges is contained in Resolution No. 77-95�, passed <br />15 by this Commission on September 21, 1977. The net effect of <br />16 two other minor components is to increase rate base by $8,000.00. <br />17 Column 2 of that same exhibit contains adjustments that are made <br />18 to the original cost of plant for that portion of the plant <br />19 considered to be held for the future use of customers. These <br />20 figures are derived from the used and useful analysis that <br />21 Mr. Vaughn previously provided testimony on. Adjustment A of <br />22 $153,000.00 is included to provide for one-half of the addition <br />23 to the water treatment plant which was completed in October, <br />24 but closed to plant in service subsequent to December 31, 1978. <br />25 The adjustment to utility plant in service of $113,000.00 is <br />26 the result of the used and useful analysis which can be found <br />27 on page 3 of Exhibit "4-A". Adjustments C, D, and E also relate <br />-5- <br />A.. <br />DEC 111979 B00% 4 Pay 2n� <br />