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I submit, as the Examiner discovered, that the allowance of this million and a half in the fee foundation is erroneous. Indeed it had not solely decided the associated fee to Phillips but had formulated the standards governing its price of return and calculated its allowable return thereunder. If utilized there it will have made a distinction in opposition to Phillips of some $8,000,000 in its 1954 charge base. Under this requirement if the next price of service did enhance and was not offset by elevated revenues the corporate may recoup itself with § 4 price will increase. The mandatory data may have been rapidly obtained from Phillips which, after all, had its whole revenues readily obtainable and, I'm sure, had its cost foundation for each § 4 improve likewise calculated. Increases by way of automatic escalator clauses-which effect the same result-are usually not permitted as a result of not based on any enhance in value of production. In addition, assuming, as I do not, that the 1954 price is correct the Commission shouldn't be permitted to increase that price and the 1954 revenue into subsequent years by 1958 and hold that they too are deficit years.

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