upr000064 90

(b) It would, be helpful to know and possibly hove testimony from a local banker as to the rate# of interest charged various typee of loans in Laa Vagaa# and those to bo compared or related to similar rates for loans node In California* While X do not know, X store or lose assume that the loan rate might be 1/4 to 1/8$ higher In Nevada* fhia would be helpful In supporting the higher rate of return in comparable utilities received in California, msccaaxot? While no computation has yet been made on the revised basis for I960 and 1981, using Xnveatwient Cost, it is dear that the - gross revenue deficiency urder this latter basis will be less than order the Original Cost basis* Likewise# aider the Present-day Cost basis# the revenue deficiency will# of course# be substantially in excess of the Original Cost basis# and as well as the $90#0Q0 that is being re­quested. 1’hls pattern# of enures, conforms to the figure# originally developed in the Sovember report# but we do have for w» may hove) the problem of having our original cost estimate ae to the revenue deficiency required ae less then that Which was requested in the smeart of #90,000. Mr* Renwiek suggested that it might be well to have made a computation on the investment basis with land included at the reduced acreage - the same as that included ttrdor the other two bases. X presume# however# in this latter Instance# it should be set up on the basis of book costs at the re­duced acreage. We will have such a figure available, It is further thought desirable that the ffeveatber report be made available be both the City of las Vegas and the levada $oB3Kii#alon by harsh 15th# and that the supplemental report be mads available at a later date# but before the hearing# in order that both parties have available the material that the Company will present at the bearing# in order to afford time for study. If this is not done# I am sure a continuance will be asked. It will probably be asked in any event# but certain­ly Applicant will be in a better position to resist such re­quest if the material is made available ahead of time. It would likewise be desirable that such reports be given in person so that necessary explanations may be made. Similarly, ' that tha Company have available prepared statement for the Frees in order that the Frees will have available at least one release and la underetartdingly written with reference to the facts# m * m* He# Reinhardt Mr* $* C# fiMMtisk Nr* f# 1* Johnson m* 1# X*. Bsrtelssel