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_______________________________________________________________________ 1 OPERATING EXPENSES Operating Expenses of the Las Vegas Land and Water Company will be presented under the following headings; 1 - Operation and Maintenance 2 - Administrative and General 3 - Joint Facility Rents 4 - Depreciation 5 - Taxes Direct Expenses The direct expenses in the operation of the distributing system (Las Vegas Land and Water Company) are included under the first two items. Joint Facility Rents cover the payment for the water furn­ished by the Production Company (Union Pacific Railroad Company). The handling of these expenses is identical with that of the original report. For the direct operating expenses of the Distributing Company (Items 1 and 2) the following tabulation summarizes the figures for 1950 Actual and 1951 Estimated from Table I-a of this report and from Table L, Sheet 1, in the Appendix to the November report. ________1950 1951 Estimated Actual Estimated Operation and Maintenance $25,000 $37,658 $36,000 Administrative and General .45,500 51,616 44,500 Total $70,300 $89,254 $80,300 The principal reason for the rise in the Operation and Main­tenance expense was the increase in payroll wages for crews engaged in installing new services, and for repair work. There was likewise incurred a cost of $2,950 in payroll for checking and policing the use of water in the interest of water con­servation. To be conservative, the 1950 expenditures have been reduced approximately 5% for the 1951 estimate. With continuing higher prices and rapid plant expansion, 1951 costs will probably be higher rather than lower.