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Las Vega* - March 29, 1950 W 2 3 -6 Mr, Wa. Reinhardt: ( oo Mr, S. S. Bennett In connection with proposed application for increase in water rates: In discussing this subject with Mr* Wehe and looking over the file covering our previous rate Increase in 1931, it was felt that it would be desirable to break down our accounts by classifications showing how much revenue is produced by each class of service. This has taken some time, but Is now available and Is attached in triplicate, Judging by the procedure of the Commission in the previous hearing, they will probably ask us to suggest speolfio increases for each class of servioo in order that those may be oonsidered in their relation to the total revenues that may be produced and the percentage of return on investment, wt have therefore shown, in red on attached analysis, the suggested increase for s&oh classification now shown in our rate schedule. It is not expected that these will be approved in tote, but we must have a basis from which to negotiate, and these will probably serve as well as any. The house rate is increase?only 50 cents per month, but that is the source from which we derive more revenue than from any other classification. The proposed rate of $2,50 compares favorably with the Reno rate of #2.75, Sly #2,50 and Elko #3.00, and will probably encounter little resistance. After the house rate is once established and accepted, it is important that other rates be oonelstent therewith in order to permit a clear and unquestionable application of the rates in the future, as it is sometimes difficult to draw a fine line between a large o&bln and a small house. The next highest source cf revenues is produced by apartments, which is in practically the same category as a house, and should bear a Similar rats. Cabins are next, and should have some differential from the house rate, but not too wide, for the reason explained above. Unfortunately, this is the olasslfloation under which auto courts and motels are rated, and we can expect some organized realstanoe from this souree, We may be able to trade some oonoessiOn in the rate, in exchange for elimination of the present vacancy allowance granted motels and auto courts, although 1 understand the Motel