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Show UP&L Seeking Rate Increase Before Public Service Com. Utah Power & Light Co. Tuesday applied to the Public Pub-lic Seivice Commission of Utah for permission to raise its electric rates in Utah. The increase would apply to all classes of customers, cus-tomers, averaging 12.5 percent, per-cent, with a maximum increase in-crease to any one class of customer of 13.6 per cent. The company is asking the increase be effective with all meter readings on and after September 10, 1971. E. Allan Hunter, president presi-dent of the utility, said this is the company's first request re-quest for a rate increase since the last increase was granted eight years ago. "However," Mr. Hunter said, "while the company has taken advantage of every ev-ery economy available to it, -its costs have continued to rise and the inflationary spiral has reached the point where it has no alternative alter-native but to request an in-' crease in electric rates and revenue at this time." Citing increasing costs of materials, supplies, lab or, and cost of money, Mr. Hunter said, "The rate increase, in-crease, if granted, would be the first since January 1963, when an increase amounting am-ounting to 7.1 per cent was approved. That was the only rate increase the company com-pany had received in the last 18 years, and only the second one in the last 50 years. Since the 1963 increase, in-crease, the Consumer Price Index (cost of living) has increased more than 30 per cent; employee wages, under un-der union negotiated contracts, con-tracts, have Increased about 50 per cent; and the cost of long-term bond money has doubled." Another element of rising costs has been . the . more expensive construction of generating plants and transmission trans-mission lines, to meet the requirements of government govern-ment regulation and make our facilities compatible with the desired environment. environ-ment. The company's investment in electric utility facilities has increased to over one- half billion dollars, an increase in-crease of nearly 75 per cent in just eight years. Mr. Hunter explained, "This unprecedented growth in investment has been necessary nec-essary to supply the growth iin electric requirements of the territory Utah Power and Light Co. serves; and I expect an even greater expansion ex-pansion in the future." The utility president pointed . out that in the five years ending with 1975, the company com-pany plans an expansion program costing upwards of ?275 million to keep up with its customers' electric requirements. The utility, which serves some 254,700 customers in Utah, estimates that the increase in-crease in rates will produce additional annual reveune of approximately $8,341,-000. $8,341,-000. The application also points out that about one-half one-half of the additional revenue reve-nue would be paid out in increased State and Federal Feder-al income taxes, leaving the Hetnainder to meet higher costs and to maintain the integrity of its invested capital. ca-pital. The increase requested, reques-ted, Mr. Hunter declared, will permit Utah Power & Light Co. to continue to provide the kind of electric service its customers have been receiving and have ev- ery right to expect. |