; f! x u' V ...... , o : :.L--;-s -J l i .... I i ' 'v c ' ! ' , ' ' f 1 s " MEMBERS OF THE Vernal Lion's Club donate $1,800 to the Uintah County Hospital fund. UP&L propose program to reduce future costs Utah Power & Light Co. Friday said it has proposed to the Utah Public Service Commission a two-point jogram designed to reduce electricity StS. i He utility's proposal includes radical changes in the pricing of electricity and a financing program on home improvements designed to conserve energy. Both the pricing concept and energy conservation program were offered to he commission in preliminary form. The utility said the two-point program jlso will be submitted to regulatory commissions in Idaho and Wyoming. The new pricing concept provides Hat new customers and growth customers be required to pay the price electricity at the cost of the next immediately required plant. For example, a new customer con-uected con-uected between now and mid-1983 toddpay fixed costs corresponding to costs for UP&L's proposed Hunter 3rd : Mt. A new customer connected bet-ran bet-ran mid-1983 and mid-1985 would be required to pay fixed costs associated : tithe utilitiy's proposed Hunter ,4th ' ML Present customers with increased 1 olowatt-hour use over a base period mild be billed for the excess kilowatt : bbs at new plant costs. The initial i ase period would probably be 1981. ' late Increases f or preserttrustomers 'mild be based on just higher (rating, maintenance, replacement ; id fuel costs. UP&L President Harry Hell pointed up that current pricing : if electricity is below the cost of newly totalled capacity because the cost for iler capacity is less expensive. Under resent pricing the cost for new is bped together with the old for an wage price. He added, under this proposal we are asking the new nistomer to pay the costs needed to we him. Under the new UP&L conservation Dedication of the new facility is May 17. program all customers would benefit because of potential reduced energy consumption. If adopted by the commission, com-mission, the utility would provide interest-free financing for home improvements im-provements designed to conserve energy. The interest-free loans would cover the cost of installation of the improvements im-provements by an approved contractor. Payback alternatives would include: 1. No payback required on the loan until such time as ownership of the house is transferred. 2. Monthly payback over a given time. 3. Single payment after a given time. These home improvements would include the installation of insulation in homes, the addition of storm doors and storm or insulated windows and other weatherization improvements. Also included are solar installations either for supplemental hot water heating or for home heating. UP&L said the homeowner would be required to file an instrument in the office of the County recorder showing a lien on the house for the amount of the loan so the loan would be assured at the time ownership of the house is tran-ferred. tran-ferred. UP&L proposes to include loan amounts under this program in the rate base and all amounts received in repayment would be a reduction in rate base. Regarding the new pricing concept, Harry Blundell said that soaring inflation in-flation has indeed had a profound negative effect on the company's earnings, causing the need for frequent rate increases. The days of cheap and abundant electricity are over. He added, the most dramatic examples are higher fuel, operating, labor, construction and soaring financing costs. In addition, he said, there is the increasing requirements for the company to invest more money in non-revenue-producing pollution control items. He pointed up the increased costs of new capacities. In 1971, he said, we built generating units for $161 per kilowatt of capacity. In 1983, the cost will approach $1,000. Regarding the conservation program, Blundell commented that many people have mistakenly assumed that utilities are biased against conservation con-servation and against the development.! of alternative energy resources. The truth is that UP&L recognizes conservation con-servation and alternative resource development to be an integral part of energy supply.