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I Total Gallons Used Railroad Use Gallons Las Vegas Land and Water Gallons Used Percent(3) (1 ) ~T&) (3) 1946 3,191,295,859 410,678,559 1947 2,780,617,300 87.13 3,494,358,308 305,682,205 3,188,676,103 91.25 1948 3,539,094,113 130,680,016 3,408,414,097 96.31 1949 3,638,899,921 97,546,903 3,541,353,018 97.32 Source; Annual reports to P. S. G. of Nevada. The sharp decline in railroad usage in 1948 and 1949 reflects the completion of Union Pacific’s program of dieselization of the Los Angeles & Salt Lake line. Prom the foregoing figures it is obvious that the water pro­duction operations are carried on essentially for the Water Utility (as opposed to railroad operations) irrespective of a division in ownership and operation between production and transmission on one hand and distribution on the other. 1 / 5. Rates Under the laws of Nevada charges made for water service by privately owned utilities in cities or towns of more than 4500 popula­tion must be on a flat rate basis, no meters being allowed. Thus, the Las Vegas Land and Water Company has no customers’ meters, and all water service is unmetered and is sold on a flat rate basis. More than 60 billing classifications are now in effect. 1/ The fact that the Production Company is an interstate railroad and as such is under the regulatory control of the Interstate Commerce Commission, and the Water Utility is regulated by the Public Service Commission of Nevada, results in certain dif­ferences in accounting practices that affect the character of the charges as recorded by the two companies. This situation is further pointed to under the chapter on rate base.