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Show At the hearing scheduled to commence on January 21, 1975 following presentation of the applicant's case in chief, all interested parties then will have an opportunity to cross-examine the applicant's appli-cant's witnesses and to submit sub-mit evidence in their own behalf. be-half. By order of the Commissi011- Dated at Salt Lake City, U tah, this 3rd day of January, 1975. Ronald E. Casper, Secretary BEFORE THE PUBLIC SERVICE COMMISSION OF UTAH CASE NO. 7088 NOTICE OF HEARING In the Matter of the Application Applica-tion of UTAH POWER & LIGHT COMPANY for Approval Ap-proval of its Proposed Electric Rate Schedules and Electric Service Regulations. The applicant proposes to recover the $3,407,000 through a surcharge until said amount is fully recovered recov-ered after which the rates will be reduced to eliminate said surcharge. (e) That applicant's earnings earn-ings without the additional revenues referred to above are insufficient to maintain applicant's financial integrity integ-rity and to allow applicant to pay the increased costs referred re-ferred to above and render adequate service to its customers. cus-tomers. The applicant alleges further fur-ther that the increased revenues rev-enues requested will be sufficient suf-ficient only to offset the increased in-creased expenses and costs outlined above and will not produce earnings on equity capital in excess of the rate heretofore allowed by the Commission. The applicant proposes to make the increased in-creased rates and charges effective February 1, 1975. The applicant proposes to spread the increased revenues rev-enues among the various classifications of service on a generally uniform basis percentagewise. The applicant is hereby ordered to file with the Commission Com-mission not later than January Jan-uary 14, 1975, in written form, all of its proposed testimony and exhibits and provide a copy thereof to any party requesting it. crease of nearly $76,000,000 over the rate base arrived at by the Commission in its Report Re-port and Order issued August 13, 1974, in Case No. 6978, involving the rates and earn -ings of Utah Power & Light Company. (b) That the applicant has experienced an increase in its embedded cost of debt and preferred stock allocable allo-cable to electric service in the State of Utah which requires re-quires additional revenue of $2,934,000. (0 That the price of coal, which applicant uses for fuel in most of its electric generating gen-erating plants, has been increased in-creased following the recent wage settlements negotiated by the United Mine Workers with applicant's coal suppliers, sup-pliers, and price increases allocable to applicant's business busi-ness in Utah will require additional ad-ditional revenue of $1,653, -000. (d) That applicant's Naughton No. 3 generating unit located in Wyoming is damaged and will be out of service for approximately a six month period and until the late spring of 1975; that the cost of repairs of such unit will approximate the sum of $1,000,000 for which . applicant is insured except for the sum of $250,000; that because said unit is out of service, applicant must purchase pur-chase power from other sources to supplement its own generation to satisfy the requirements of its customers; custom-ers; and that the additional expense allocable to its Utah operations as a result of the foregoing will approximate $3,407,000 in the year 1975. Notice is hereby given that the above -entitled application applica-tion of Utah Power & Light Company will be heard before be-fore the Public Service Commission Com-mission of Utah, at the Salt Lake City Public Library, Lecture Hall (3rd Floor), 209 East 5th South, Salt Lake City, Utah, commencing at 9;00 a.m. on January 21. 1215.. By this application Utah Power & Light Company seeks authority to increase it s rates and charges for electric service in the State of Utah so as to produce additional ad-ditional gross revenues of $20,262,000 annually based on the volume of sales during dur-ing 1974 adjusted to 1975 conditions. The applicant alleges that the increase in revenues stated above is necessary for the following reasons; (a) That its rate base for year end 1974, based on ten months actual and two months estimated, allocable to electric service in the State of Utah is $567,878,000 which requires additional revenue of $12,268,000. The rate base figure of $567,-878.000 $567,-878.000 represents an in- |