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4896-11-213 Case No. 1221 Los Angeles - auS* 2^, 1953 Mr. Wm. Reinhardt: cc: Mr. L.R. Maag Mr. Calvin M. Cory Referring to Mr. Maag's letters of July 9th and August 24th to you, copy to me, and your letter of August 26th to Mr. Maag, copy to me, relative to refrigeration equipment, ice making equipment and cooler system in Las Vegas: As I told you at the time we received the Opinion and Order of the Nevada Public Service Commission, in I & S Docket 142, Case 1221, I was unable to definitely determine just what the Chairman of the Commission was trying to say with respect to waiving outstanding overcharges and under­charges with respect to reimbursing certain customers. However, the Opinion and Order provides that the Water Company is authorized to refund any overcharges and waive any undercharges for this particular type of service. The Opinion also provides on Page 13 of the copy, which you have, that the Water Company is authorized to waive the collection of any outstanding undercharges which may be due for service prior to January 1, 1952, which would be applicable under certain rates "or any other rates set forth in prior tariffs". Lastly, the commission authorizes reimbursement to customers who have paid for service.under the 1951 schedule of rates. This refrigeration question is discussed in Section 9, Pages 25 and 26, of the contract between the railroads, the Water Company and the Water District, wherein it is provided that in view of the present status of refrigeration rates and charges, the District will not take over or pay for any bills collectible involving refrigeration rates nor shall such bills collectible be added to the purchase price unless the district shall consent thereto in escrow. The contract further provides on Page 26, that the Water Company shall assume any liability existing upon the sale date for refunds due customers under refrigeration etc. rates. AUG 31 1953 L. C. C.