The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1920-05-18
To the Honorable Mayor and Council
men of the City of Winncmucca,
Winnemucca, Nevada.

men OF the C1ty OF WlHHcluuccd,
Winnemucca, Nevada.
Gentlemen:-We beg leave to sub
NIT the following report on the con-
ditions, as we found them. of the
water utility of Winnemucca Water
and Light Company. We were COM
missioned by your honorable board
to make survey of the books of the
above-named company with Mr.. Broili
engineer for lle public service COM
mission of Nevada, with the idea of
arriving at some understanding
whereby a fair and equitable rate
would be made the city for hydrant
service. In order to make this survey
we had access to the sworn reports
of the company made to the public
service commission for the past eight
and one-half years; and, as every
statement made in these reports is
made under oath, we have assumed
them to be correct and have based
our finding thereon. We have aimed
to be utterly impartial, to see that
the city is not charged an exhorbi-
| tant rate; and, also to see, that the
Water and Light Company is per-
mitted to earn fair returns on the
money they have invested. Mr..
Broili advised that the public service
commission has ruled that eleven
per cent-eight per cent as fair re-
turns, and three per cent for de-
preciation-is fair returns. This we
considered fair and so proceeded with
the investigation
Attached to this report is a sum-
mary of receipts and disbursements.
covering a period of eight and one
half years-June so, 1911 to an in
cluding December 81, 1919. This sum-
mary covers the water utility only
and shows gross profits for this pc
riod of $43, 1886. Each year shows
very substantial profit, excepting
the years 1918 and 1919. 1t will be
noted that the income increased each
year as did the expense, particularly
the latter during the years 1917. 1918
and 1919. The charge made against
the water utility in favor of the
electric utility for electric current
furnished" was the item of greatest
increase. In the year 1917 the charge
was $3,54290; in 1918, $10.31409 and
in 1919, $11,72422. These seeming ex-
horbitant charges account for the
promptly took exceptions to these
very material increases in the ex-
pense and Mr.. Gilman, superintend-
ent, explained that prior to 1918 there
was no way to measure the current
used to pump water-he installed
meters in 191S-so now has COM
plete check on same. We had no way
Of checking his figures, but we did
check cost of fuel oil, lubricating oil
and general expense that makes up
the total cost of producing the cur
of fuel oil were used and thirty cars
in 1919 at an average cost. including
freight, of 5000 per car. In 1918 the
total cost to produce electric current
was $23,9S451; water utility proper
ton, s10,314O9, or approximately
forty-three per cent; in 1919 total
cost was s25.6277S; water utility
proportion $11,724,22, or approx
mately forty-five per cent. When it
is considered this service covers only
the pumping of water for domestic
in the charge against the water utility
is rather staggering to the lay mind.
Mr.. Broili explained that the present
pump consumes about seventy-five
kilowatt per hour; and from figures
we checked from book kept by the
electrician in charge, the pump is
run on an average of $500 hours per
year. In 1918 the cost to produce
current. as figured by the company,
was 404 cents per kilowatt and the
water utility was charged 81 cents
per kilowatt. This pump. we were in
formed, handled about 400 gallons of
water per minute. A new pump is to
be installed as soon as possible,
which will use from thirty to thirty
| five kilowatt per hour. handle about
200 gallons of water per minute and
run approximately 5000 hours per
year to furnish the same amount of
water we are getting now. Mr.. Broi-
Ii figured it would cost four cents a
kilowatt or s1.40 per hour to run the
new pump. According to these figures
the new pump should cost the water
utility about $4,000 per year. as
against $11.724.22 in 1919.
At the present time the equipment