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LAS VJjjGAS MORNING 4— if—53. UtiIity Company Lays Basis-Jor Future Boosts In Hearing BeforeT S C Costs of supplying water to Las Vegas consumers have increased so much in the past few years that the Las Vegas Land and Water Co. will have to seek additional increases over and above the 50 per cent water rate hike they are now asking. This was disclosed yesterday by testimony on behalf of the Union Pacific Railroad, owner of the water utility, at the open­ing session of a hearing on their petition for an increase in Las Vegas water rates- before the Nevada Public Service Commis­sion: Roy Wehe, San Francisco'con­sulting engineer, who prepared the cost survey on which pro­posed rate increases are based, told the commissioners he had informed Union Pacific officials additional rate increases will be necessary in the near future. Wehe’s testimony, supported by two voluminous reports rep­resenting the results of his cost and‘ rate survey, took all of yes terday’s session, and will prob •ably conclude today, after which water company and Union Pa­cific officials will give support­ing evidence to substantiate the company’s claims for an in­crease. Originally scheduled for two- days, the hearings are expected to last through tomorrow and possibly Friday, according to Commissioner Chairman Robert. Allen. City Atty. Howard Cannon has not yet had the opportunity either to interrogate the rail­road’s representatives or present the city's opposition . Wehe'.explained that the pro­posed'water rates as developed by the Las Vegas Land and Water Co., will yield an increase of approximately $90,000 of gross revenue for the: year, or an over­all increase of 42.5 percent. “Such an increase is viewed as not unreasonable,” Wehe de­clared, adding, “as the average billing for water' service in Las Vegas will still remain low as compared to most other cities.” He said also that the rate would still be “exceedingly low when the high'per-capita use of water is taken into considera­tion.” ; The increase to a residential consumer of average size will be from about $2 to $2.70 per month, he pointed out. “While some^JiLj&g^increases on a percentage basis are ma­terially higher for the commer­cial classifications, the dollar billing must still be looked upon as low, both from point of view as to the dollar amounts paid and from the standpoint of the gen- <C£talinued-^»it..aak g cv (Continued from Page 1).' erous volume of water used,” Wehe continued. The rate expert said that costs of service to consumers have in­creased so rapidly that revenues are failing to meet expenses. Wehe added flat there was no surplus left foalearnings on the capital invested ik] the water dis­tribution facilities. He warned that further in­creases in rates would be neces­sary to keep up with expansion, and “inflationary trends, of rising costs,” but advised the Union Pa­cific officials to consider the cur­rent increase at this time, and later appeal for an additional in­crease, “as conditions warrant.” Earlier in the hearing, Chair­man Allen refused to allow the city to make the issue of inade­quate summertime service, which was the basis of resisting the ac-, tion for higher rates. Allen ruled that the subject may be taken up at a later date. City Atty. Howard Cannon, how­ever, held that “adequacy of [service is M vital factor if the utility bellies itself entitled to more incoma” Allen agrelfc that' the PRC will consider the factor, but still de­clined to permit Cannon to raise the issue by placing into the rec­ord testimony regarding, the last two Las Vegas Rummers, when pressure was so inadequate that a serious fire hazard resulted.