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motminG sun Vol. 1, No. 224. LAS VEGAS, NEVADA, WEDNESDAY, APR. 4, 1951. Five Cents Per Copy Further W ater Rate Raises To Be Sought U tility C om pany Lays Basis for Future Boosts In Hearing Before P S C Costs of supplying water to Las Vegas consumers have increased so much in the past few years that the Las Vegas Land and Water Co. will have to seek additional increases over and above the 50 per cent water rate hike they are — — ---------------------. . _ — | now asking. This was disclosed yesterday by testimony on behalf of the Union Pacific Railroad, owner of the water utility, at the open­ing session of a hearing on their petition for an increase in Las Vegas' water rates before the Nevada Public Service Commis­sion. Roy-Wehe, San Francisco con­sulting engineer, who prepared the cost survey on which pro­posed rate increases are based, told the commissioners he had informed Union Pacific officials additional rate increases will be necessary in the near future. Wehe’s testimony, supported by two voluminous reports rep­resenting the results of his cost and rate survey, took all of yes­terday’s session, and will prob­ably conclude today, after which water company and Union Pa­cific officials will give support­ing evidence to substantiate the company’s claims for an in­crease- Originally scheduled for two-days, the hearings are expected to last through tomorrow and ipossibl^ ii^kiday,.. according.^ to Commissioner Chairman Robert Allen. City Atty. Howard Cannon has not yet had the opportunity either ,to interrogate the rail­road’s representatives or present the city’s opposition. Wehe explained that the pro­posed water rates as developed by the Las Vegas Land and Water Co., will yield an increase of approximately $90,000 of . gross revenue for the year, or an over­all increase of 42.5 percent. "Such an increase is viewed as not unreasonable,” Wehe de­clared, adding, "as the average billing for water service in Las Vegas will still remain low as compared to most other cities.” He said also that the rate would still be "exceedingly low when the high per-capita use Of water is taken into considera­tion.” The increase to a residential consumer of average size will be from about $2 to $2.70 per month, he pointed out. “While some of the increases on a percentage basis are ma­terially higher for the commer cial classifications, the, dollar billing must still be looked upon as low, both from point of view as to the dollar amounts paid and from the standpoint of the gen (Continued on Page 2) _ ! Water Hearing ] (Continued from rare 1) l erous volume of water used,” | \Vehe continued. The rate expert said that costs Of service to consumers have in­creased so rapidly that: revenues are failing to meet expenses. Wehe added that there was no surplus left for earnings on the capital invested in the water dis­tribution facilities. He warned that further in­creases. in rates would be neces­sary to keep up with expansion, and “inflationary trends of rising costs,” but advised the Union Pa­cific officials to consider the cur­rent increase at this time, and later appeal for an additional in­crease, “as conditions' warrant.” Earlier in the hearing, Chair­man Allen refused to allow the city to make the issue of inade­quate summertime service, which Was the basis of resisting the ac­tion for higher rates, Allen ruled that - the subject may be taken up at a later date. City Atty. Howard Cannon, how­ever, held that “adequacy of service is a vital factor if the utility believes itself entitled to more income.” Allen agreed that the PRC will consider the factor, but still der dined to permit Cannon to r^i$e the issue by placing into the re<& ord testimony regarding the l$$t two Las Vegas summers, whhn pressure was so inadequate that a serious fire hazard resulted. Wafer Hearing Continuation Seen Indications were today that the current hearing of the Ne­vada public service commission in this city would be continued for at least another day, with the Las Ve'gas Land and Water company’s ‘first witness domina­ting the testimony all day Tues­day and th»s morning. However, City Attorney How­ard Cannon was expected to cross-examine the water utility’s witness, Roy A, Wehe, consult­ing engineer, as the sessions re­sumed this afternoon. Wehe was called to the stand yesterday morning to explain de­tails of two reports concerning operation of the land and water company during 1950 and 1951. He has gone over the exhausi tive figures in the two reports item by item and it was expected that the water company would call still another engineer to the ! witness st a n d this afternoon j after Wehe’s cross-examinationr,- Th'e fireworks in the hearing jwere expected to start- when Cannon presented the city’s case and local citizens and.organiza- (Continued on Page Two)'