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m C omini s slonera a n d D i r e c t o r s of the n e w W a t e r D i s t r i c t present, was sy m p a t h e t i c to o u r position, and X anticipate w e will h a v e lit tie diffic u l t y In obtai n i n g some increase. It will, however, b e n e c e s s a r y that w e s u p p o r t our a p p l i c a t i o n w i t h , statements of cost o f L V L & W a n d R a i l r o a d w a t e r p r o d u c t i o n and d i s t r i b u t i o n f a c i lities a n d current opera t i n g e x p e n s e s • v a l u e b a s i s the N e v a d a Public Service C o m m i s s i o n w i l l consider acceptable, w i l l apprec i a t e if y o u w i l l d e v e l o p cost statements f o r u s e i n .rate h e a r i n g b e f o r e the C o m m i s s i o n a n d our guidance i n c o n n e c t i o n w i t h the p r o p o s e d a c q u i s i t i o n or c o n d e m n a t i o n of our w a t e r sy s t e m b y the L a s V e g a s W a t e r District, a n the fo l l o w ­i n g basis separately f o r the R a i l r o a d C o m p a n y o w n e d w a t e r - p r o d u c i n g facili t i e s a n d L V L & W C o • o w n e d d i s t r i b u t i o n system* 1 - The h i s t o r i c a l cost o f facilities, u s i n g a r e t i r e d a n d r e p l a c e b a s i s r a t h e r than betterment, l e s s depreciation. 2 - R e p r o d u c t i o n cost of facilities., less depreciation. 3 - The h i s t o r i c a l cost of our w a t e r - p r o d u c i n g lands a n d pre s e n t m a r k e t v a l u e thereof* I n e a c h instance, the v a l u e of the R a i l r o a d Shop Gr o u n d W e l l a n d p i p e lines, u s e d e x ­clusively b y the R a i l r o a d C o m p a n y a n d its lessees s h o u l d b e exoluded. * W i l l apprec i a t e if y o u w i l l also arrange for statement of expenditures b e i n g i n c u r r e d i n the m a i n t e n a n c e a n d o p e r a t i o n o f t h e w a t e r - p r o d u c i n g a n d d i s t r i b u t i o n facilities, depreciation, taxes, etc. s e p a r a t e d as b e t w e e n R a i l r o a d a n d L V L & W operations, t o g e t h e r w i t h a n e sti m a t e of f e d e r a l income taxes. The state­m e n t of R a i l r o a d expenditures sh o u l d l i k e w i s e exclude expense of m a i n t a i n i n g a n d operating facili t i e s a n d pipe lines u s e d e x c l u s i v e l y f o r r a i l r o a d operations. Orlg. J.-7334 - Las Vegas Valley W a t e r Distr i c t - P r o p . M u n i c i p a l Owner Copy, 1- 7 3 3 4 - W a t e r Rate Schedule & Regulations Copy, 1 - 7 3 3 4 - W a t e r ^ C o n s e r v a t i o n P r o g r a m A s w e a r e u n a b l e at this time to a n t i cipate w h a t Wm. R e i n h a r d t I d ship