OCR Text |
Show UPL Rate Increase Granted After Lengthy PSC Hearing The Public Service Com. mission of Utah issued lis decision, today, in the case involving the application o Utah I'nwer & Light Company Com-pany to increase its rates and charges in Utah by alxiul 12 V-i percent. The Commission authorized the Company la tsuhmit a new .schedule of rales and charges by March 3, 1972, providing for an in-wease in-wease Ln annual gross revenue rev-enue of not more than $G,4., 415 based on the volume of sales (kilowatt hours) dur-in dur-in the year ended December 31, 1971. The increase in 'gross revenue which the Commission authorized ' will represent an overall increase of 8.52 per cent. The rates which had been filed by Utah Power & Light and which were disallowed and rejected by the Commission would have produced an increase in revenue of $9,290,000, based on the 1971 kilowatt hour sales in Utah. The amount au thorized by the Commission Is ."JO . S per cent less than rc quested by Utah Power 8c Light. The order provides that a further public hearing will be held at which time the nev schedule of rates and charges will be subject to scrutiny. The Commission indicated that the hearing would be ' held about the middle of March. The Commission gave consideration con-sideration to the expenditures that have been made by Utah Power & Light in recent years for sales promotion and advertising ad-vertising purposes. The Commission Com-mission disallowed $322,039 of the 1971 sales promotion and advertising expenses. The Commission determined determin-ed that a rate of return of 7.9 per cent on the base would be fair and reasonable. The rate base which the Commission Commis-sion found to be appropriate for Utah operations for the year ended December 31. 1971, vim $T;5?,2)0f). . The hearing in thi'i ca; extended over a period of sev-eral sev-eral months during which there was H'i exhibits intro ducr-d and the transcript of the testimony covers V'A'i pages. During the course of the hearing there were numerous num-erous parties who appeared and made statements and .several professors from the University of Utah submitted studies that were helpful la the Commission. The Commission feels thai the increase granted js the minimum amount necessary for Utah Power & Light to continue to adequately srve its present customers and hi able to meet the future demands de-mands for power for its customers cus-tomers in Utah. The order granted the first increase ti Utah Power & Light Company in Utah since 19G3. |