City of North Las Vegas v. Public Service Commission
| Decision Date | 13 June 1967 |
| Docket Number | No. 5232,5232 |
| Citation | 83 Nev. 278,429 P.2d 66 |
| Parties | The CITY OF NORTH LAS VEGAS, Nevada, a Municipal Corporation, Appellant, v. The PUBLIC SERVICE COMMISSION of Nevada, Desert Water District, a Quasi-Municipal Corporation in Clark County, Nevada, and Suburban Water Company, Inc., a Nevada Corporation, Respondents. |
| Court | Nevada Supreme Court |
John P. Fadgen, City Atty., North Las Vegas, for appellant.
Harvey Dickerson, Atty. Gen., John J. Sheehan, Deputy Atty. Gen., Carson City, George E. Franklin, Jr., Dist. Atty., and John A. Porter, Deputy Dist. Atty., Edwin J. Dotson, Las Vegas, for respondents.
The Public Service Commission approved the transfer of a certificate of public convenience and necessity for a water system from Suburban Water Company, Inc., to Desert Water District and denied an application for transfer of the same certificate to the City of North Las Vegas. North Las Vegas sought review in the district court, which upheld both orders of the Public Service Commission, and this appeal ensued.
At the time of the argument we announced informally our decision from the bench because of the onset of hot weather and the urgent need to assure water to the users affected. We affirmed the ruling of the court below, holding there was substantial evidence to support the finding of the Public Service Commission and rejecting the constitutional challenge to NRS 704.410. We now render our formal opinion in the matter.
Suburban Water Company, a small public utility, serves an area, adjacent to but outside the limits of North Las Vegas. It has about 384 users and produces, as well as distributes, water for domestic and community purposes. Suburban was ordered by the Public Service Commission to make certain capital improvements in its system. Rather than comply, it decided to dispose of its system. North Las Vegas sought to acquire the system and the certificate but was met with many protests, principally from users within the system. North Las Vegas contended the area could best be served by it, though outside its corporate limits, because it had an adequate source of water, storage facilities and could extend its distribution system into the area and serve the users with efficiency and dependability and would avoid duplication. The monthly charge then in effect would be raised $1.50, making a new flat monthly rate of approximately $7.34 for the average user.
During this time a committee of protesting users formed a water district pursuant to NRS Chapter 311, known as Desert Water District. The District not only opposed the transfer to North Las Vegas but sought to purchase the system and transfer of the certificate to itself. It offered financial, improvement and operating plans to the Commission.
The main objections to North Las Vegas taking over the system seemed to center on future arbitrary rate increases to users; inability of users to effectively complain about operation of the system and rates because being outside the city they have no political voice or influence; absence of any supervision or control by the Public Service Commission if operated by the city (NRS 704.340), and that North Las Vegas was seeking the system and certificate as means of ultimately extending its corporate boundaries into the area. The city's application was opposed openly by Clark County.
The Commission, pursuant to NRS 704.370 and 704.410, denied acquisition of the system and transfer of the certificate to North Las Vegas. The Commission approved the purchase by Desert Water District and transfer of the certificate, authorized borrowing of $100,000 for acquisition, repair and improvement of the system, and ordered an interim flat-rate charge of $5.00 per month until a permanent rate could be established based upon experience. The certificate...
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