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Mr. William Reinhardt Mr. Edward C. Renwick Mr. W. H. Johnson MEMORANDUM HO. 2 TO: Mr. 1. E. Bennett FROM: Mr. Soy A. We he File Ho. 80-5 Subject: LAS VEGAS MSB AND WATER OOMPMY. In order that you and Mr. Reinhardt may know the present status of the Study on the Las Vegas Land and Water Company, as well as to what the figures point to, a summary estimate of the tentative Results of Operation are hereinafter summarized. Further, sueh preliminary estimate was desired by yourself in order to prepare for the discussion with Commissioner J. G. Allard in San Francisco on Wednesday, March 1st. Likewise, while the final estimates will differ from the figure presented now, this will afford an opportunity to set forth some of the more important differences that result from the appli­cation of certain rate-making principles that should be discussed so that policies may be decided upon as to the methods to be followed in setting up the Study that will be used in preparing the Applica­tion as well as the exhibit in the rate proceeding before the Gem-mission. STATUS OF WORK: Sufficient study and investigation has been made to afford a general understanding as to the undertaking, as well as to the prob­able operating results of the Water Company that may be expected. More specifically, fixed capital, revenue and operating ex­penses have been studied and analyzed, to the extent that time and