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Show REPORT AND TENTATIVE ORDER Ca.se No. 2504 Before the Public Service Commission of Utah IN THE MATTER OF THE PETITION PE-TITION AND COMPLAINT OF MAYOR D. C. WATSON. FOR AND ON BEHALF OF THE INHABITANTS IN-HABITANTS OF THE CITY OF ST. GEORGE AND OF THE CITY OF ST. GEORGE, Complaint, vs. SOUTHERN UTAH POWER COMPANY, a corporation, Defendant. BY THE COMMISSION: On the 23rd day of October, 1941, Mayor D. C. Watson, for and on behalf of the inhabitants of the City of St. George, and of the City of St. George, State of Utah, filed a petition and complaint com-plaint with the Public Service Commission of Utah based upon an alleged threat of discontinuance discontinu-ance of light and power service to the City of St. George by the Southern Utah Power Company, as of midnight, October 25, 1941, the expiration date of the present franchise granted the defendant, Southern Utah Power Company, by the City of St. George. i ne commission oraera t n e matter handled under summary procedure according to its rules. From the investigation made by the Commission, and from the records rec-ords and files in this case, which are made a part hereof by reference, refer-ence, the Commission finds: 1. That Mayor D. C. Watson is a resident of the City of St. George, a user of electrical energy from the defendant, Southern Utah Power Company, and that he is the duly elected, qualified quali-fied and acting Mayor of the City of St. George, a municipal corporation. corpor-ation. 2. That the defendant, Southern South-ern Utah Power Company, is a corporation existing under and by virtue of the laws of the State of Utah, with its principal place of business in Cedar City, Iron County, State of Utah, and that Reid H. Gardner is the president and manager of said defendant corporation. 3. That said petition is made for and on behalf of the residents of the City of St. George, and for the City of St. George as a municipal corporation. 4. That on the 6th day of May, 1941, the qualified electors of the City of St. George, at a special election, authorized and instructed the Mayor and City Council of the City of St. George to issue bonds in the sum of $300,000.00, and to acquire and erect a municipal-owned plant and a distribution distribu-tion system. 5. That on the 26th day of May, 1941, at a special election called for that purpose, the qualified quali-fied electors of the City of St. George voted against renewing or granting to the defendant, the Southern Utah Power Company, a franchise for the distribution and sale of electrical energy within the City of St. George. 6. That within approximately thirty days after the City Council of the City of St. George were authorized to acquire a munici-cipally-owned power plant and distribution dis-tribution system, bids were called for as provided by law and contracts con-tracts awarded to the lowest bidder bid-der for the construction of a municipally-owned power plant. 7. That the City of St. George withheld the awarding of the bids for the construction of a distribution distribu-tion system, and endeavored to negotiate ne-gotiate with the defendant, the Southern Utah Power Company, for the purchase of its system. That the City of St. George offered of-fered to purchase the distribution system of the defendant, but the defendant rejected said offer and refused to sell its distribution system for less than $53,000.00, which, in the judgment of the City Council in view of the cost of a new system was not a fair and reasonable offer. 8. That the contract for the building of a distribution system has now been awarded, and the distribution system is now in process proc-ess of construction. 9. That it is the best information informa-tion and belief of the complainant that the municipally-owned power plant and the distribution system will be completed and ready for operation and ready to deliver to the City of St. George and inhabitants inhabi-tants thereof the necessary electrical elec-trical energy to satisfy their demands de-mands within three months from the expiration of the present franchise fran-chise of the Southern Utah Power company. 10. That the present franchise of the defendant, the Southern Utah Power Company, authorizing authoriz-ing them to use the streets and city property, of the City of St. George to construct and maintain the distribution system for the delivery of electrical energy to the inhabitants of said city expires ex-pires at midnight on October 25, 1941. 11. That the City of St. George tendered to the defendant, the Southern Utah Power Company, a new franchise for a period of six months, a copy of which is at- i plaint of complainant, and made a part of the records and files herein. 12. That the defendant, the Southern Utah Power Company, rejected the proffered franchise and rendered to the City of St. George a franchise acceptable to Southern Utah Power Company, which is also attached to complaint's com-plaint's petition and complaint and made a part of the records and files herein. 13. That the City of St. George, because of terms of said franchise fran-chise so tendered to it by the Southern Utah Power Company failing to include certain provisions provis-ions necessary for the protection of the City of St. George and inhabitants in-habitants thereof, rejected said franchise, notified the Southern Utah Power Company of their action, ac-tion, and requested said Southern Utah Power Company to continue to serve the inhabitants of the City of St. George and the City of St. George under the old franchise fran-chise until a new franchise was negotiated satisfactory to both parties. 14. That the City of St. George tendered to the defendant the right to maintain its present distribution distribu-tion system within and upon the streets of the City of St. George under the conditions of the existing exist-ing franchise until such time as the municinallv-owned Dower Dlant and distribution system of the City of St. George is ready to serve the inhabitants of said city. 15. That on October 17, 1941, the Public Service Commission received re-ceived for its files a letter from said Reid H. Gardner, president and manager of the Southern Utah Power Company, to which was attached a copy of a letter to the Mayor and City Council of St. George, Utah, outlining objection objec-tion to a franchise drawn by the City of St. George, and also a copy of a franchise which the defendant de-fendant company had drawn and agreed to accept. 16. That, in brief, it appears that neither party to the dispute will accept the other's proposed ordinance on the major ground that each proposed franchise does not offer proper protection for the other. From the foregoing facts the Commission concludes that there is a public necessity and convenience conveni-ence to the City of St. George, and inhabitants thereof, to continue con-tinue to receive the present service serv-ice of the Southern Utah Power Company until the municipally-owned municipally-owned plant of the City of St. George is completed and ready for operation. - The Commission further concludes con-cludes that if the City of St. George and the inhabitants thereof there-of are deprived of the present service of the defendant prior to the time that the municipally-owned municipally-owned power plant of the City of St. George is completed, the health, safety and convenience of the inhabitants thereof will be threatened and greatly endangered. endanger-ed. NOW, THEREFORE, IT IS HEREBY ORDERED, That the defendant, Southern Utah Power Company, continue to serve the inhabitants of the City of St. George with electric light and power in accordance with the rates published in its schedules on file with the Public Service Commission Com-mission of Utah for a period of six months from the date hereof. IT IS FURTHER ORDERED, That the Commission expressly retain jurisdictioin of this matter until the municipal power plant and distribution system of the City of St. George is completed and in operation. IT IS FURTHER ORDERED, that a copy of this order be served upon the City of St. George and the Southern Utah Power Company, Com-pany, and that notices containing the substance of this order be published in a newspaper having general circulation in Washington County, Utah, for two issues, and unless protest is filed with this Commission on or before November Novem-ber 14, 1941, by some interested party, this order will become of full force and effect on said date. Dated at Salt Lake City, Utah, October 24, 1941. GEORGE S. BALLIF, DONALD HACKING, OSCAR W. CARLSON, Attest: Commissioners. CHAS. A. ESSER, Secretary. BEFORE the PUBLIC SERVICE COMMISSION OF UTAH STATE OF UTAH ) ) ss. County of Salt Lake ) I hereby certify that the foregoing fore-going consisting of five pages numbered 1 to 5 inclusive, is a true and correct copy of the original or-iginal Report and Tentative Order in Case No. 2504 in the foregoing entitled matter or cause, now of record or on file in the office of the Public Service Commission of Utah. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of said Commission Commis-sion this 24th day of October, 1941. CHAS. A. ESSER, Secretary of Commission. (SEAL) |