upr000306 15

% c r P 9 April 4* 1950 Lincoln County Power District Ho# 1 Water Department Pioehe* Sevada Gentlemen s I have year bill dated 1 April I960, in the amount of $15*85 for use of 31*690 gallons of water during the month of March, 1950, at the rate of 50# per M gallons# For your ready reference* I am attaching a schedule showing payments made for water consumed by the Railroad at Pioehe commencing with the month of August, 1948* During the period from June 1* 1948 to August 9, 1948* payments amounting to $27,60 were made to the Pioehe water System as Receivers for Amalgamated Pioehe Mines and Staelters Corporation# These payments were based' on the rate of $3*00 per unit for 4 units. Prior to June 1* 1948* and since January 15* 1909* the Railroad was furnished water under reciprocal agreement entered into between the Kevada Utah Mines and Smelters Corporation, Ohio-Kentucky Consolidated Mining Company and Caliente & Pioehe Railroad Company? the Amalgamated Pioehe Mines and Smelters Corporation and Los Angeles & Salt Lake Rail­road Company being successors to those interests# At the time the Receiver took over the water system and increased its efficiency #> evidently in June, 1948 - the Railroad was agreeable to paying $12,00 per month for water fur­nished# However* effective August 1, 1948* a meter was installed to measure water used at the 4 connections by the Railroad, and since that time you will note water payments have increased ex­cessively, being rated at 50# per M gallons* The Railroad has never been presented with a schedule of rates approved by the Pub­lic Service Commission, nor has it been approached regarding the rights remaining the under Agreement dated January 15, 1909* or the mutual agreement that the Railroad would pay $12*00 per month for 4 units which was had with the Receiver for Amalgamated Pioehe Mines and Smelters Corporation# It is the Railroad*s position that amounts charged for water consumed since August 1948 are excessive* and that billing should have been for $12*00 per month, It may be that the mter is not functioning properly since we can find no explanation for excessive and varying amounts of water used shown on the attached schedule#