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Show POWER COMPANY BUYS MUNICIPAL PLANT AT KANAB Purchase Price of Distribution Distribu-tion System and Town's Equity in Engines $11,000 Power Rates to be Lowered The municipal diesel power plant at Kanab was sold to the Southern Utah Power company on March 14, according to recent re-cent announcement. This is the first plant acquired by the power company outside of Washington and Iron counties, and it is expected ex-pected that the company will build their lines to serve the balance bal-ance of Kane county and, Fre-donia,. Fre-donia,. Ariz., in the near future. The Kanab plant was purchased purchas-ed in June, 1929, the town having hav-ing previously been served by an old steam plant. The town board built a distribution system for $11,000, taking the money from a sinking fund, and purchased the engines' for something more than $32,000 on the installment plan, whereby the town was to pay $452 a month to be taken from the revenues of the plant. Although the rates placed in effect ef-fect were very high the residential resi-dential rate having a $3 minimum mini-mum which included 20 kilowatt hours, and the balance at 16 cents per kilowatt hour, there has never been sufficient revenue reve-nue from the plant to meet the EWttily payments. The rates were later reduced somewhat due to the inability of the customers to pay. Late last year the company which sold the engines notified the town they would have to bring the contract up to date or the coin- any would repossess the equipment. equip-ment. The town board then called call-ed a meeting of citizens to decide de-cide what to do, and the people voted 62 to 8 to call a special election to deal with the disposal dis-posal of the plant. The election was called early in January and the result was 3 to 1 in favor of selling the plant. Bids were then called for to be opened on January 2 5, and the Southern Utah Power company bid $11,-000.00 $11,-000.00 for the distribution system sys-tem and the town's equity in the diesel plant. When the power company took over the plant they lowered the residential minimum to $1.50 with a top rate of 12c per klio-watt klio-watt hour. Other rates were reduced re-duced in proportion. It is understood un-derstood that .the power company com-pany will use the present plant temporarily until financial conditions con-ditions improve to a point that the company can build a line from its present transmission, system to connect with the distribution" dis-tribution" ss."- Kanab, at fc Ute83 a' Plant will s"mT- use y service |