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Mr. Wm. Reinhardt 4 December 4, 1951 "The com m ission s h a l l th ereu p on a s c e r t a in w h eth er i t i s a d v is a b le in th e p u b lic i n t e r e s t t h a t such c o n t r a c t be ex e c u te d and, i f th e com­m is s io n s h a l l a p p rove such c o n t r a c t , th en such p e rs o n , company, c o r p o r a t io n o r a s s o c ia t io n s h a l l have th e r i g h t t o fu r n is h , s e l l , produce and d e l i v e r such l i g h t , h e a t, power o r w a te r in a cco rd a n ce w ith th e term s o f such c o n t r a c t , and s h a ll n o t th e r e b y become a p u b lic u t i l i t y w it h in th e m eaning o f t h i s a c t , n or s h a l l i t be s u b je c t t o th e j u r i s d i c t i o n o f th e com m issio n .w The R a ilr o a d f i r s t engaged in p ro d u c in g w a te r a t Las V egas f o r use in i t s own o p e r a t io n s and th e s u p p ly in g o f w a te r t o th e C it y o f Las Vegas was o n ly i n c i d e n t a l . F o r many y e a r s th e R a ilr o a d I t s e l f used th e bu lk o f th e w a te r w h ich i t p rod u ced . T h is h a s . e n t i r e l y ch anged, and th e Wa­t e r Company how d i s t r i b u t e s f o r d o m e s tic consum ption a t Las V egas a lm o st 98% o f th e w a t e r produced by th e R a ilr o a d Com­pany. The b a la n ce i s tak en by th e R a ilr o a d Company and, a lth o u g h I do n o t have th e e x a c t f i g u r e s b e fo r e me, i t i s my u n d e rs ta n d in g t h a t p r a c t i c a l l y a l l o f th e w a te r tak en by th e R a ilr o a d Company i s s o ld by i t to s e v e r a l in d u s t r i­a l consumers in th e C it y . I t can thus be seen t h a t th e R a ilr o a d Company i s no lo n g e r m e re ly d is p o s in g o f s u rp lu s w a te r n o t r e q u ir e d in i t s o p e r a t io n s . P r a c t i c a l l y i t s e n t i r e p ro d u c tio n goes d i r e c t l y i n t o d o m e s tic o r i n d u s t r i a l u s e . T h ere i s con­s id e r a b le a u t h o r it y in d e c id e d o a ses to th e e f f e c t t h a t a p erson o r c o r p o r a t io n , w ith o u t b e in g d e c la r e d a p u b lic u-t i l l t y , can s e l l w a te r o r o t h e r p ro d u c ts o r d i n a r i l y d is t r ib u t e d by p u b lic u t i l i t i e s w hich a re s u rp lu s p r o d u c ts . The th e o r y beh in d th e s e oa ses i s th a t th e s e l l e r makes no fir m commit­ment t o i t s p u rch a sers t o c o n tin u e t o su p p ly them w it h th e w a te r o r o t h e r p ro d u c ts and t h a t i t t h e r e f o r e d o es n ot ded­i c a t e the s u rp lu s p ro d u c t n o t r e q u ir e d in i t s own o p e r a ­t io n s t o th e p u b lic u s e . S e c t io n 6133 o f th e Hevada Com­p i l e d Laws i s a s t a t u t o r y r e c o g n it io n o f t h is p r i n c i p l e . The R a ilr o a d has n e v e r com p lied w ith S e c t io n 6133 by o b t a in in g th e a p p ro v a l o f th e P u b lic S e r v ic e Commission