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Memo to Mr. Campbell: July 7, 1951 Pro and Con of proposition to restrict further water services until summer is over. Estimate of the Situation: The City Commissioners have filed a complaint vs L&W Co alleging water supply is insufficient, storage inadequate, and general service in summer poor. Hearing was held in Sept, 1950' by PSC. Reinhardt called for a truce pending the application of pumps to some of the wells to see if the well supply could be thereby increased. On Jan 1 Reinhardt advised the City Commissioners that the installation of pumps had increased the amount of water available for the City by something like 2 MCE) (as I recall) The complaint was not withdrawn by the City, as Pecoole (as I recall) would not agree. The complaint case is still on unfinished business with the PSC, The Land and Water Company filed an application in January for a rate increase. After hearings, a decision was indicated by Chairman Allen as probable in July. This might involve an increase of up to the 40$ asked by the company. Maybe only 33$. Allen will cut the 40$ down. PRO the proposition then: If the rate case is decided, and an increase allowed, the District would later have to raise rates not over twice in order to carry the debt burden and other expense. This is in our favor. The admission of a shortage of water would help us sell the bond issue to the voters if the election is held this summer, A delay might be advisable until the rate case is decided, then ask for curtailment of further service connections this summer. In the face of such a temporary ruling, Chairman of PSC might not to decide a rate case by allowing the increase. AGAINST the propositidfi: The purchase price agreed upon for the local utility will necessarily draw criticism from City Commissioners- all the more so if they can prove an over valuation to system. Peccole has complained as to insufficient storage, insufficient water, etc. An order stopping further service connections would be fuel for him(?). Recommendation: D elay a c tio n u n t i l r a t e ca se i s s e tt l e d