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I submit, as the Examiner discovered, that the allowance of this million and a half in the fee basis is erroneous. Indeed it had not solely determined the associated fee to Phillips but had formulated the standards governing its fee of return and calculated its allowable return thereunder. If utilized there it might have made a distinction against Phillips of some $8,000,000 in its 1954 rate base. Under this requirement if the next cost of service did enhance and was not offset by elevated revenues the corporate could recoup itself with § 4 price increases. The required information might have been shortly obtained from Phillips which, in fact, had its complete revenues readily obtainable and, I'm sure, had its cost foundation for each § 4 increase likewise calculated. Increases by computerized escalator clauses-which impact the identical end result-usually are not permitted as a result of not based mostly on any enhance in price of manufacturing. In addition, assuming, as I don't, that the 1954 value is correct the Commission shouldn't be permitted to extend that price and the 1954 revenue into subsequent years by way of 1958 and hold that they too are deficit years.

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