The Appraisal of Public Service Properties As a Basis for the Regulation of Rate
The Appraisal of Public Service Properties As a Basis for the Regulation of Rate
C E Carl Ewald Grunsky
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45 2. 33S 11. 111 13. 45 10 5. 3 58. 23 2. 329 10. 000 12. 33 15 7. 6 58. 18 2. 327 6. 667 8. 99 20 9. 9 58. 95 2. 358 5. 000 7. 36 25 12. 0 60. 08 2. 401 4. 000 6. 40 30 14. 1 61. 25 2. 450 3. 333 5. 78 35 16. 0 62. 53 2. 501 2. 857 5. 36 40 17. 9 63. 80 2. 552 2. 500 5. 05 45 19. 7 65. 10 2. 604 2. 222 4. 83 50 21. 5 66. 38 2. 655 2. UOO 4. 66 If, however, it can be shown that the investment has been cut down by excessive earnings or by a. Direct repayment of capital, as in the case of munici...pal or State aid by contribution of funds to the owner, then the interest rate should be applied only to the remaining investment. Method No. 4, Tables 8 and 11, is practically equivalent to a com- putation of the replacement requirement for inclusion in the earnings. When, however, a new plant of numerous parts is in question, all the expectancies of which are n years, it would be better to grade the replacement increment from nothing at the beginning to one-nth of the investment in the nth year.
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