man000177 234

EXPLORATORY CONFERENCE WITH UNION PACIFIC RR ENGINEER t WILLIAM REINHARDT. Los Angeles,-Wednesday May.24, 1950, 2:30 PM-4:20 PM. 1. Mr. Reinhardt said they were preparing a-rate.case-applying for an increase before the Public Service Com. of Nevada. M r . Wehe, who has had experience with the Hydraulic Eng. Dept, of the P.U.C. of California is working on it, and reasonably will be thru in about ten days. I asked when the case would be heard, as I understood a telephone rate case had the right-of-way with July 1st calendar rating. No answer. Some comment on the polit­ical situation in Nevada. Mr. Reinhardt said that the rate base for this hearing would not be the sale price.under Condemnation proceedings. It will be less for the rate case. The RR will claim a sale price based on REPRODUCTION COST NEW LESS DEPRECIATION. (After check­ing this with the California Public Utilities Commission, I must agree that Mr. Reinhardt has the law on his side there). The jurisdiction of the Nevada Commission over the affairs of the District were discussed. Such jurisdiction will not even be in evidence until we -go before them. After we possess the local utility, then the Nevada Commission will no longer have jurisdiction (This is yet to be definitely so stated) It was also brought out that if the Nevada Commission delays action on the rate hearing, the longer they wait the shorter the time for our application to purchase — and the futility of the work to establish a new rate schedule already looms up in the eyes of the Commissioners. 2. Turning then to the sale of the utility to the District, the following inventory items were discussed and the method of handling each (The R R Ts viewpoint being quoted) a . Real Estate. b . Transmission line pipes(between wells and reservoirs) c. Distribution system d . Gift pipe lines to subdivisions (Bonanza, for Inst.) e. Fire Hydrants f. Valves g. Right-of-ways, along transmission lines over RR land. h. Office building on 1st Street. i. Water Rights. j. Stock of the Land and Water Conpany k. Deeds from U.P.R.R. to cover their property. l. Real estate held out. (ranch land, etc.) m. Extensions being made and to be made soon. a. Real Estate. The UP will not want to sell all their land. Much was purchased in order to protect their own water rights, but these water rights are now protected by the State Engineer’s Office. Roughly, a triangular piece will be sold us. Then a rectangular piece, north side of the holdings, will not be sold. b. Transmission Lines. The UP will sell the transmission lines, and a right-of-way, say 20 feet wide, touching the pipe along Its edge. (Not a-straddle the pipe). c. Distribution Lines. The L&W Co owns these, and the Agreement sale will cover them, f100,000 has been invested recently in providing circulation around the town— no betterment of pressure or quantity of water. Better fire fighting pressures maybe.