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i$936 <br />Section 4. Subsection ~G} ~c} of Section 6 of ordinance <br />No. 18284 is hereby amended to read as follows: <br />Section 6. Rates for Installation and Services. <br />~ 6 } Rate Change Procedures. <br />~c} In all rate review proceedings, the issue <br />shall be whether the rates} under review produce a fair rate <br />of return on grantee's investment in the system serving the <br />franchise area and whether grantee is in compliance with the <br />terms of this ordinance. The rate of return shall be calcu-- <br />lated by dividing the following numerator by the denominator; <br />NUMERATOR shall be the sum of the net income after <br />federal taxes for each of the past three calendar years. <br />DENOMINATOR shall be the sum of the average assets far <br />each of the past three calendar years. Each year's "average <br />assets" will be determined by adding the net property, plant <br />and equipment plus working capital allowance at the beginning <br />of the year to the net property, plant and equipment plus <br />working capital allowance at the end of the year and then <br />dividing that sum by two. "Working capital allowance" is <br />calculated by subtracting from annual operating costs the sum <br />of annual depreciation and interest and then multiplying the <br />result by .12329. <br />The burden of establishing the reasonableness of a rate <br />change shall be upon the party requesting the rate change. <br />ordinance -~ 11 <br />