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<br /> <br /> Page | 14 <br />Cost of Services <br />Asset Value and Depreciation Allocation Summary <br /> <br />The allocation of operations and maintenance expenses generally followed the same <br />logic as the 2017 and 2019 studies. This is based on our understanding that the <br />operations of SPRWS have not changed materially from 2019. The allocation of <br />operating and maintenance expenses to base, maximum day and maximum hour is <br />shown in the table on the following page. The allocation of some expenses was done <br />based on the 2017 and 2019 study including: <br />• 49.50% of administration costs with the exception of safety and security were <br />allocated based on a time allocation of staff in that function <br />• 66.7% of safety and security costs were allocated based on a time allocation of <br />staff in that function <br />• Meter expenses were allocated based on an allocation of staff time and <br />resources <br />• 21.9% of Engineering Maps and Records costs were allocated based on a time <br />allocation of staff in that function <br />• 49.5% of GA employee fringe cost were allocated because they are part of <br />administration <br /> <br />In addition, engineering costs related to homeowner lead replacement loans and land <br />sales were not allocated as they do not benefit wholesale customers. <br /> <br />The operations and maintenance total expense allocations are shown on the following <br />pages. <br /> <br />Description Roseville Little Canada U of M Total <br />Plant Value (Present Worth Allocation)24,824,524$ 5,114,685$ 4,794,985$ 34,734,193$ <br />Return on Investment (5%)1,241,226$ 255,734$ 239,749$ 1,736,710$ <br />Current Depreciation 557,024$ 116,118$ 87,746$ 760,887$ <br />Total Capital Cost 1,798,250$ 371,852$ 327,495$ 2,497,597$