Show Utah Power Asks Increase In Rates President Says Utah Power Light company applied TueSt Tuesday tl to the Public Service Commission of Utah for permission to raise Its Utah electric elec talc service rates by approximately approximately 10 per cent The Increase in increase in In- crease would apply to all aU classes of customers E. E M M. Naughton president of the utility said this is the company's company's com com- pany's first request for a rate increase In 10 years lie He explained explain ed that the proposed Increase would amount to about 2 cents a day to the tho average domestic domestic do do- customer lie He asked the commission to set a hearing bearing on the matter at the earliest practicable practicable tI ble date The company's application al alleges ala al leges that present rates d do not now and will not in th the future yield a fair and reasonable rate of return upon its property devoted devoted devoted de de- de- de voted to public service It al alleges al aJ leges that a fair and reasonable rate of or return would be not less than 65 per cent The utility set forth that it has expanded its electric facilities facilities facil facil- since 1945 at an unprecedented unprecedented unprecedented rate to keep pace with the demand for electricity and sees an even greater expansion for the future which will mean the sale of securities In competition with other securities securIties securities on the open market In requesting a change to a amore amore amore more equitable method of ac ac- accruing crating money annually for depreciation depredation de de- de predation of Its property the concern set forth that its present pres ent method is not adequate to provide an allowance necessary to maintain the integrity of its investment and will WU impair its I ability to attract necessary cap cap- ital i to replace and expand its facilities to serve the public Mr Naughton said the utility has exercised every economy available to it but that operating operatIng operating ing costs have continued to rise and inflation has caught up to tous tous us UI so that we can no longer absorb absorb absorb ab ab- rising costs through the practice of operating economies Everything we buy to build new facilities and to operate and maintain present facilities has Increased from 20 per cent In some categories to 60 per cent in others since 1952 Tax levies interest rates wages and benefits ben ben- cuts all have gone up The consumers consumers consumers consumer's con sumers sumer's price index has risen more than 15 per cent in the past decade 1 This modest Increase Mr Naughton declared will permit to continue to provide the kind of electric service the regIon region region re re- re- re gion has been receiving and to which it Is entitled It will also help us to build for the future of this area whose general economy economy econ econ- omy is growing so rapidly The application requests that the rate increase become became effective effective effective tive with billings on and after May 2 2 In a separate application the utility seeks commission approval al to acquire the assets and as assume assume as as- sume the liabilities of the he Telluride Telluride Tel Tel- luride Power Company UP acquired all an the voting securIties securities securities of Telluride in May of 1958 and has been operating it as a wholly-owned wholly subsidiary since that time Acquisition of Telluride the application alleges will be Inthe Inthe in inthe the public interest in hi that it will eliminate duplication and pe permit permit per per- mit simplification o of operations and financing |