Show I Witness Tells I Power Needs Need of an adequate power supply supply supply sup sup- ply possible only through a 61 expansion program during the next five years is essential to Utah's industrial development George M M. Gadsby president Utah Power and Light Co testified Wednesday before the state public service commission Mr Gadsby was the first witness testifying on the power company's petition to increase rates approximately approximately approximately annually The company's rate-increase rate petition petition petition pe pe- pe- pe stated that the utility is not at present earning the 6 which the P S C previously ruled was a fair rate of return Ask New Xe Rates Kates The utility asked ed that the new rates said to amount to about 60 cents a month for some 99 of residential electric service users become effective June 1 to make available about in new revenue before taxes tares this s year George R R. R Corey vice president and counsel for the utility company company company com com- pany made a preliminary statement statement statement state state- ment declaring our testimony will show that present rate schedules do not furnish reasonable rates of return or even 6 on invest est ment This is because of increased operating costs including labor materials and equipment replace replace- ments Cut Too Ton Deep Mr Gadsby opened his testimony by saying that the rate cut made by U UPS P S C in 1913 1943 was too deep The 1943 rate reduction amounted amount amount- ed to about It a year He reviewed extensively ely the physical properties of the company and noted the Interconnections with Copper Corp and Columbia Steel Sted Co as well as numerous municipal power plants throughout Utah for better belter transmission transmission transmission trans trans- mission of electrical energy In referring to the states state's in industrial industrial industrial in- in expansion the witness said it is a basic fact that industrial industrial indus indus- trial development de cannot tal take e place unless there be an adequate energy supply As we view it there can be no power importations to meet this development development development develop develop- ment in the next five years The need of higher rates also was linked with the necessity of the company issuing new securities to help finance its development program |