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Show Area municipal power still possible ; n PjlUj Ujr .Jf V ' UT1UT1E S COM PANYfc ' 1 . i BOOK STC&ck ?gf f 1 I I & TT uu u J By BRUCE LEE Record Asst. Editor Municipal power in southwest Utah still has three chances: the Southwest Utah Cooperative Power Federation could gain the CP National electric system by condemnation, by the Public Service Commission not allowing the sale of the properties to Utah Power & Light, or by duplication of the system by municipalities. According to Carl Palmer, president of the SUCPF, all three are still very viable and possible. The information was given during a series of meetings involving the SUCPF and the Southwest Power Agency Oct. 2. During the afternoon and evening, the SUCPF attorneys and bond counsel met with the Cedar City Council to shore up support and explain where monies for the proposed purchase would be obtained. The boards of "directors of the federation and the agency met to discuss technicalities in the operation and maintenance of the system if they should acquire it, and they, and others, then reported to the general membership of the federation. The boards of directors of the federation and the agency stated they hope that the properties can be obtained ob-tained through one of the first two methods, condemnation or sale if the UP&L sale is refused, rather than through duplication of the system. In outlining the current status of the condemnation suit, SUCPF Attorney George Fadel said, "You have an opportunity op-portunity here that will never come again, and it's, ripe." Fadel also reviewed the history of the condemnation suit, which was filed in fifth and sixth district courts after CP National signed a letter of intent to sell to UP&L. That suit was dismissed by Sixth District Court Judge Don V. Tibbs on Sept. 8. The federation almost immediately im-mediately filed an appeal to the Utah State Supreme Court. Action on the appeal is pending, and Fadel stated that he is pushing through the case as quickly as possible. Fadel told the Cedar City Council that the dismissal was the best thing that could have happened. Now the case is before the Supreme Court quickly, and "we're in an excellent position here to find out do we or don't we, to find out our rights." "Up to this point, there's been a lot of bluffing," he continued, noting further that if the Supreme Court granted the municipalities involved the right to condemn, the future proceedings in the court would consist only of setting a price on the system. If the Supreme Court disallows the condemnation, the next hope for the federation and the agency is that the Public Service Commission won't approve the sale of CPN properties to UP&L. If the sale were not approved, the SPA would again begin negotiating with CPN to purchase it and set up a municipal system. Assistant Attorney General James Barker, who is representing before the PSC the mayors of the southwest Utah cities who would like to purchase the system, told the group of mayors, city councils and power boards that he was preparing final arguments to convince the PSC that the federation and agency could purchase and operate a power system in the area. But to do that, he stated, the mayors and councilmen would need to help, "so that there's no question that we don't have a bunch of sheep here who don't know what the hell is going on." First, Barker asked that a copy of a proposed plan of administration and operation of the system be once again reviewed by all city councils until it is apparent that they not only have a plan, but that they understand it. (For a more detailed explanation of this plan, see the related story on this page.) This action is to be entered in the minutes; and a certified copy of the minutes from each town sent to Barker to place in evidence before the PSC. "UP&L is trying to create the illusion that the people down here don't know what they're doing because they don't know the plan," said Barker. This would prove that they do know it in as much detail as possible at this time. Second, Barker asked that Frank Robinson, bond counsel from the New York law firm of Brown, Wood, Ivey, Mitchell & Petty, again write a letter to each city council explaining the method of " financing the proposed purchase of the electric system. Again, this method should be reviewed by the councils until they understand it completely, then a certified cer-tified copy should be sent to Barker, also to be offered as evidence to the PSC. In related business, members of Brown, Wood, Ivey, Mitchell & Petty met with the Cedar City Council, with the boards of directors of the federation and the agency and with power boards from the various communities in an effort to more clearly explain the financing procedure and to shore up support of the future sale of municipal bonds to purchase the system. The bond counsel would arrange for the selling of up to $25 million in bonds through Goldman-Sachs of New York, the managing underwriter. Through these bonds, the SPA would buy the power system and sign various contracts with the cities, Rural Electrification Elec-trification Associations and rural areas for power supplies, transmission costs, operation and maintenance and repayment of the bonds. In other business, the new coordinator coor-dinator of the SUCPF, Joy Frei, was introduced to members. Mrs. Frei will be working out of a St. George City office. Her office and salary has been donated by St. George City. She will be in the office from 9 a.m. to 1 p.m. weekdays. The phone number is 628-2170. The California-Pacific Utilities sign in Cedar City (the company is now CP National) will eventually come down. But what sign is to replace it is still in question. It could be Utah Power & Light, or a sign representing a locally-owned locally-owned municipal system. Negotiations and court and PSC hearings are continuing in the hotly-contested hotly-contested issue. |