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upr000163 38

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upr000163-038
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    University of Nevada, Las Vegas. Libraries

    \ REPORT OF RESULTS OF OPERATION WATER .DISTRIBUTION SYSTEM LAS VEGAS LAND AND WATER COMPANY 1 1 . INTRODUCTION The investigation made and that covered in this report in­volves a comprehensive analysis of the operations of the water utility m of the Las Vegas Hand and Water Company. It was made primarily for the purpose of determining what increase in the gross revenue of the Water Utility was necessary in order that the cost of operation he returned and that a fair return be realized on the property that is used and useful in providing water service to the public in the City of Las Vegas, State of Nevada. In making such analysis and tests as to the level of earnings reasonably required to yield a fair rate of return, three generally accepted capital bases have been used, namely that of: I - Recorded Costs II - Original Costs III - Present-Day Costs Under each of the capital bases, full deductions for de­preciation have been made. In addition, in order to translate the revenue increase re­quired, a proposed new set of flat water rates has been developed and is set forth in the appropriate chapter dealing with that subject. Because the operations of the Water Utility are limited to the retail distribution of water and not the production of water, and H because all water is produced by the Union Pacific Railroad Company, that company’s operations are likewise studied and analyzed, the results being complementary to this report on the Water Utility’s operation. 1/ Las Vegas Land and Water Company will sometimes hereinafter be referred to as ”Water Utility”. 2/ Union Pacific Railroad Company will sometimes be spoken of as ”Production Company”. The water production properties are owned by the Los Angeles & Salt Lake Railroad Company but operated by the Union Pacific Railroad Co.