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Mr. I. Cm Rensrick Rate Spread (continued) Further Increases: *•2** To the 1312,882 must be added $5,500 tor miscellaneous revenues other than from sale of water, that was a part of the 1951 estimate. This gives $318,382 for 1951. This will yield 4.3$ on the Historical Cost basis after paying the full return of to the Production Company. If operations are integrated, the over-all return becomes approximately 5*3$. Jh® $318,382 will provide an increase of $76,182, compared to the $94,486 originally developed as the increase from the proposed rates in Table R of Exhibit A. The loss is due essentially to the present proposed lower rates for the Motel Service. A review of several of the commercial accounts, such a bottling workj ice cream manufacturers? laundries, hotels shows that the rates new charged and those proposed are low. Outside of the hotels, the amount of added revenue that could be secured would not be great in the aggregate, A general increase would probably cause much adverse sentiment and possibly concerted opposition* An increase in the hotel rates would bring in some additional revenue - but not a great deal - as the charge for toilet and bath facilities are within a nickel of the residential. The charge for each additional room couid be increased a dime - raising an added $59.00 per month. Likewise, the minimum for the first 10 rooms could be raised - but no money is involved and we run into high percentage increases over present rates. In order to secure any amount of additional revenue, we must look to the residential group. The following schedule of further increases would pick up about $16,213 annually: Residential No. Units U) Romes 5903 (2) Motels 63 (3) 873 (4) 39 (5) Restore 2# on the yards Total Increase Per Month 20# 20# 05# 10# Annual Increase 134,167 151 524 1,324 On the historical basis, the Las Vegas Land and Water Company would net about 5.4$ and, on an integrated basis, both Companies sharing equally, the return would be 5.8$. On the Investment Basis, with reduced land acreage, the resulting over-all return would be 6.5$, or better.