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h i t 1 else ~ »?* A . ivi, JUN 1 1 1 9 4 ; , O F F I C E O f &M%:u t1VE ASSlS'i'AJ-Jane 10 th, 1942 1 7 JUN 1 1 19 4 2 ipSANGj£L£S/C&LiF Referring to Mr. Jeffers’ letter of May 25th, file 199* concerning undercharges for water furnished in Las Vegas, and haring particular reference to Mr. Jeffers' advice that you and X should approve any deviation froa regular schedule charges, and that such deviation must not produce discrimination. 1 spent two days in Las Vegas last week, and aaong other things reviewed In detail with Mr. Bracken the natter of allowance for vacancies In auto courts, apartment houses and hotels, having In mind the paragraph in the Commission’s rate schedule which reads as follows: "IT IS FURTHER ORDERED that the Las Vegas Land and Water Company make such appropriate vacancy allowance in monthly apartment houses, bungalow courts and auto camp services as shall be found to be unoccupied and that the monthly charge shall be modified accordingly, PROVIDED, however, that the minimum monthly charge shall not be less than Six Dollars ($6.00) per month for apartment houses, Four and fjQAOOths Dollars ($4.50) for bungalow courts or auto cabins where three (3) or more of these classes of service are maintained.* I submit the following comment: 1. While not specifically mentioned in the para- graph quoted above, hotels In the past have contended that their operation is similar to that in auto courts, and the Water Co. has made vacancy allowances for such facilities. I think this is proper. 2. A large number of hotels and auto courts are served by the Water Co., practically all of which eater to transients. Under present boom conditions these facilities are, in general, overcrowded froa Friday night to Monday morning, with a varying but substantial vacancy during the remainder of each week. To make • the required vacancy allowance on an actual basis for each individual facility would mean review of each concern's books, an operation the cost of which would, X believe, be prohibitive, and certainly would be most objectionable to the operators. To avoid the expense and objection, the Water Co. hae in the past determined 20% allowance as fairly representing the average vacancy throughout the year. There have, however, been ( 1)