upr000278 147

1 m m m m m m m m m m m w m m m m m z m m n m m m m m & fm m u m w m am company JZT ? -J- M-tR o 1>l><1T10n / tbs investigation mads m m that covered in this report involves * comprehensive analysis of the operations of the water utility of the & Vegas Land and Water Company* It wee made primarily for the purpose of determining what increase in %&m gross revenue of the lists* Utility was necessary in order that the cost of operation he returned and that a fair return he realised on the property ihdt la used and useful in providing water service to the public Sn the City of has Vegas, State of Pcvada* In staking such analyais and testa as to the level of earnings reasonably required to yield a fair rate of return, three generally accepted capital bases have been used, namely that ef t I f Recorded Costs XX * Original Costs 111 * Preavftt Pay Costs Under each of the eapitil bases, full deductions for depreciation have boon made. In addition, in order to translate the'revenue increase retired, a proposed now sot of flat water rates has been develop* ed and is set forth in the appropriate chapter dealing with that subject* Because the operations of the Hater Utility are U n i t e d to the retail distribution of water and not the production of J l/ water, all water is purchased wholesale from the Union Pacific % J t m Vegas hand end Hater Company will sometimes heroins referred to as "Hater Utility"* -forward from. hereinafter be /°04ft