upr000276 289

Following a conference held in Mr. Molamee's o f fic e on February 20, we have compiled fig u re s showing the cost o f water a t la s Vegas as d elivered through the 16” meter to the la s Vegas land and Water Company with the r e s u lt as shown on attached statem ent. In th is cost we have included in te r e s t a t 8$ on the valu ation o f ;joint water f a c i l i t i e s as o f January 1 , 1931. Shis valuation is used fo r the reason th a t a l l of the f a c i l i t i e s were in serv ice during the e n tire year of 1930. In previous sim ila r statem ents in te r e s t a t &$> has been included, but i t was the opinion of those present a t the conference above re fe rre d to th at the ra te o f 6$ was more in accord with p revailin g in te r e s t ra te s in Nevada t e r r it o r y . For ra te making purposes i t w ill be necessary to add to th is cost o f water a l l co st re su ltin g from the la s Vegas land and l a t e r Company’ s d is trib u tio n system which w ill be compiled by Mr. Bracken. In preparing th is statement i t was decided to use the general ledger balance o f $81,278.05 fo r the value of the 1VX&W water system instead o f the amount o f $102,332 as determined by the Valuation Department and furnished in i t s l e t t e r o f June 12, 1929. fo th is fig u re should be added $650 to cover the 760 lin e a l fe e t o f 4 ” red­wood pipe aoquired under Work Order 152. In addition to the above valuation of pipe lin e s and appurtenances some value should be applied to the water rig h ts owned by the la s Vegas land and Water Company which was e s t i ­mated a t §200,475 by our V aluation Department in Mr. Perkins l e t t e r o f August 28, 1929. I t was also considered advisable to use an In te r e s t ra te o f 8$ on the valuation of f a c i l i t i e s in compiling the cost of d is tr ib u tio n . I t is my understanding th at Mr. Bracken w ill include in h is statem ent of oost incurred by the 1V1&W d is trib u tin g system item o f $650 for the 4 ” redwood pipe aoquired under Work Order 152; a lso Include the value fo r water r ig h ts men­tioned above. E n el. R. 1 . Adamson,. co-Mr. F. S. Mclamee, f Mr. Walter Jrigc 9315-3-W -B raLcask enV.e gas, Nev. Water S_ ysftLem (LVL&W Co. 3opy 9215-3-W - Las Vegas, NevC H. 8. Sale of water and electricity bjrEB 2(s 1931 LA&SLRR Co to LVL&W Co.