upr000270 121

% The second increment, namely the completion of Plan No. 2, would he accomplished by the construction at the end of the 8th year of a 40” pipe line, approximately 75,000 feet in length, to Lake Mead, where an intake structure would be built, and necessary pumping units and booster stations would be installed along the line. The added construction cost that would be incurred is given at $4,289,000, making the over-all cost of both Plan Nos. 1 and 2 $7,411,000 (pages 81-82). It is estimated that Plan No. 2 will pro­vide an adequate water supply for a period of 50 years. The results of this computation as to revenues required to support the project are set forth in attached Tables No. 5 and No. 4. These results show a revenue deficiency of approximately $1,076,000 for the initial year of operation, and $1 ,1 1 0 ,0 0 0 for the year 1970. While the plan results in a lesser percentage loss as more complete use is made of the project, yet the requirements in gross revenue increases must be looked upon as impractical and would call for higher customer rates than could reasonably be assessed and paid. Because of the very substantial increases in rates that would be required under either plan, it has not been deemed necessary to make more refined estimates. Upward revision of estimated gross revenues could be made on the basis of increases in the service area. Also, some decreases in estimated cost could possibly be justified after a closely detailed study, altho it must be kept in mind that since the date of the Greeley and Hansen Report (October 1949) construction costs have increased. 5 -