EXHIBIT B.-Surcharges (1956 actual, 1987 and 1938 estimated) as collected by the eNTIGUNGE ******* tty **yardstick" communities in Mississippi during the fiscal years 1936, 1937, 1938

FORMULA B-continued

1 Obtained from annual reports to Tennessee Valley Authority.
Formulas used in arriving at surcharges:

FORMULA A USED FOR AMORY ONLY

x plus .15x=all electric revenue except residential (including surcharges).
where x = all electric revenue except residential (excluding surcharges).
where .15x=surcharge.

Example:

Same as A only substitute 10 percent for 15 percent:

I plus .10x=all electric revenue except residential (including surcharges),
Example: (Pontotoc-1938):

20,376

Surcharge 2984

Or as a simplification of this formula merely divide the total revenue except residential
(including surcharge) by the figure 11.

Was computed by formula B, as it was not reported separately in annual report.
Surcharge removed Jan. 17, 1936, Tupelo.

Surcharge removed Aug. 1, 1936, Alcorn (surcharges for month of July 1936, estimated
at 12 of the 1935-36 total).

NOTE. It was necessary to resort to this method of obtaining the surcharges for 1937
and 1938 because the annual report form for 1938 did not reveal this information.

1938

EXHIBIT C.-Proration of Tennessee Valley Authority promotional expense for the years ending June 30, 1986, 1937, 1938, to “yardstick' communities in Mississippi

All others

1 In service only 111⁄2 months in 1936.
In service only 414 months in 1936.

This expense is prorated 75 percent to residential and 25 percent to all other customers.
Sources: 1936, Tennessee Valley Authority Annual Report, 1937 (p. 107); 1937, Ten-
nessee Valley Authority Annual Report, 1937 (p. 107); 1938, Tennessee Valley Authority
department of operations, monthly report, June 1938 (p. 57).

Sources: 1936, Tennessee Valley Authority department of electricity, monthly oper-
ating and construction report, June 1936 (p. 33); 1937, Tennessee Valley Authority depart
ment of electricity, monthly operating and construction report, June 1937 (p. 3); 1938,

Tennessee Valley Authority department of operations, monthly report, June 1938 (p. 24).

Source of average number of customers is as complied from Tennessee Valley Authority department of electricity monthly reports.

Basis for proration of sales-promotion expense:

1. 75 percent of the total is prorated on basis of average number of residential customers for the year.

2. 25 percent of the total is prorated on basis of average number of all other cus tomers for the year.

EXHIBIT D.-Cost per kilowatt-hour of producing power in Tennessee Valley Authority unified generating system

Sources: (a) See schedules D-1, D-2, D-3. (b) See schedule D-5. (c) 1936, Tennessee Valley Authority department of electricity monthly operating and construction report, June 1936 (p. 8). 1937, Tennessee Valley Authority department of electricity monthly operating and construction report, June 1937 (p. 6). 1938, Tennessee Valley Authority department of operations monthly report June 1938 (p.62). (d) 1936, same as (c) abo e. 1937, same as (c) above. 1938, arrived at by deducting power sold from power generated (no other source available).

SCHEDULE D-1.-Fixed charges on investment in Tennessee Valley Authority Unified power generating system, year ending June 30, 1936

1 See schedule D-4.

(A) $17,725, 460

(B)

1, 127, 993

(C)

18,853, 453

(D)

395, 029

$659, 871 10, 370

670, 241

354, 509

45, 120

11,851

411, 480

1,081, 721

1 Fixed charges on Wilson-Pickwick line were taken for 9 months only since the line was not completed until September 1935.

SCHEDULE D-2.—Fixed charges on investment in Tennessee Valley Authority unified power generating system, year ending June 30, 1937

Interest and depreciation on Wheeler and Norris Dams was taken only for that period during which esch was actually in operation. Wheeler operations began Apr. 1, 1937, and Norris operations began Oct. 1, 1935. SCHEDULE D-3.-Fixed charges on investment in Tennessee Valley Authority unified power generating system, year ending June 30, 1938

SCHEDULE D-3.-Fixed charges on investment in Tennessee Valley Authority unified power generating system, year ending June 30, 1938

SCHEDULE D-4.-Investment in unified power generating system

1 Norris Dam operations began Oct. 1, 1936. Fixed charges are applied only to that period during which generating facilities were actually in operation.

Wheeler Dam operations began Apr. 1. 1937. Fixed charges are applied only to that period during which generating facilities were actually in operation.

Wilson-Pickwick completed September 1935. Fixed charges are applied only to that period during which generating facilities were actually in operation.

Kilowatt-amperes.

Sources:

(a) "Investment of the Tennessee Valley Authority in Wilson, Norris, and Wheeler Projects," Doc. No. 709, 75th Cong., 3d sess., House of Representatives (p. 4).

(b) Same as (a) (p. 22).

(c) Independent offices appropriation bill for 1939 (pp. 987–989).