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Las Vegas Morning Sun-August 28, I9 5 I W ater Company Granted 10 Per Cent Rate Boost Comn£ S o S L « d g;„ 37, i UP)~ Tt Pub,ic Service and Water Co to in n r ld M er perm ,ttm §: the Las Vegas Land 10 per cent? * Se its water rates in the Las Vegas area by The order Snf 1 tPLn _ __b—_ewc o*m**e*,s-» ce_ ififce?uctuivvee &ept. 1. The company had sought ; to increase water rates by an J average of 42 per cent. I In addition, the commission warned the people of Las Vegas and the water company that “aft-er a somewhat thorough investi- ! gation of the water resources of the Las Vegas Valley,” it had concluded that the peak of avail able water supply had been reached. Las Vegans were warned that they must not waste water in the future unless the growth of the city is restricted. Any future new supply of wa­ter, the commission pointed out, must be from a source other pATlen said that the company! plad,-FMcJ.d its water production facihtiej|as worth $751,643 while trhaelu ceo n0ffe sthsoio nia csiaIiidt yi t ofne lta ar afatiJr making base was $460,061. I He said that the company had been using a four per-cent figure! ,n determining depreciation fopt | ? ----- w*'- v>winiuta»iun p a t the commission felt a two using the $618,919 figure for tl distributing facilitv DC! £J hoed fr said the commission was told th< company services 9081 customer; at present and that the estimate* per capita return to the company is $26.67. The company’ s pei capita return in 1949 was $25.8; and in 1950, $26.66, according tc Allen. Allen said the commission r ^ '-'JutiiuiBsion ieit percent figure was ample. L Aden saM ® e commission had I Becided the water company’s distribution system was worth (5618,919 for a rate-making base, although the company placed the value at $850,842. Allen said the .ompany had used present-day :osts in determining the figure ,, ‘ <* source other ,ubult- that the commission felt in-tnan the artesian basin and will, Hated prices should not be used of course, cost each user a much fin setting a value. Original cost larger fee than is how exacted/°Hthe system was $612 844 from him.” The commission estimated that The commission warned that the artesian supply is in danger of diminishing, and recommended no further drilling of wells. Commission Chairman Robert A. Allen, who announced the de-, cision, said the agency felt the company was entitled to a six per cent earning on its invest- ;ment. He pointed out that in reaching the decision, which fol­lowed lengthy discussions and hearings in Las Vegas, the, com­mission took into consideration two factors: Cl) the value of the 5 company’s water production and 1 1. . Phe va*ue ° f the company’s i distribution lines. I the annual income for the com­pany for 1951 under the present schedule would reach- $242,200. Allen said the commission felt that about $25,000 was needed f t new revenue to give the, com­pany a six per cent return'. He n o nguie JLUI If] | facility as a base fe: j that the company was entitle |l t° $25,112 in new revenue an jj fhat an overall average increas inn rates of 10 per cent would pre I vide the company with, annua [.revenue of $267,312. } Sample rate increases for La, I patrons pf the compam I were listed by Allen as: Bakery, now paying $2.0( aSskkeedd ^$n5n.0*0 16 m'oWnathtelry caonmd PatihBe $*-™20 ipsesrio tlm oanPtPhr.°ved a rate o; Apartment house, (each in dividual apartment) noy paying Hi month’ the company sked $2.50 and the commission granted $1.65. Motel, per unit without toilet or bath, now paying $1.00 month­ly, the company sought $1.50 and tne commission granted $1.10. Residence, five rooms or less no,w Paying $1-50, the company asked $2.10 and the commission allowed, $1.65. Office, building, 10 rooms or less now paying $2.00, asked $D,UU and was granted $3.00. The commission pointed ou t! some rate increases were more than ten per cent but that others I were less but an average of j about ten per cent was main-’ tamed throughout. Schools will pay the same $10 rate monthly in the luture as: they now pay, it was explained, j