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Show Study shows private power could save By BRUCE LEE Record Editor A private study showing that the CP National electric system could be operated as a public utility at a savings over a private company was released Friday night at the Southwest Utah Cooperative Power Federation elections elec-tions banquet. The study was done by Wamsley Engineering Company of Salt Lake City, but was not commissioned by the SUCPF in any way, said Carl Palmer, SUCPF president. "We feel that the system has excellent ex-cellent potential operated as a public utility to pay off bonding and provide reliable service at rates comparable with other municipal power companies and REAs in the area," the report said. Figures in the report were based on what Palmer called a "worst case analysis." Four basic assumptions were made. First, the figures assumed that the system would cost $21 million. That is roughly the figure that Utah Power & Light has offered to pay for the system, but SUCPF officials feel it can be purchased for less. Second, the report was figured on a bonding rate of 13 percent over thirty years. However, most municipal revenue bonds are not floated at that high of a rate. Third, the report assumed that CPN will be granted the full 31 percent rate increase it has filed for before the Utah Public Service Commission. This 31 percent increase would be passed onto the consumers if the system were to go municipal or to be sold to Utah Power & Light. Fourth, the figures were based on immediately putting $7 million dollars into the system for upgrading. Using these figures and the CPN annual report lor 1980, the report said that the system would have a net income in-come of $710,314 per year. This could be turned back to the various entities in the SUCPF or rates could be lowered somewhat. The figures also showed that a $297,072 "in lieu of tax reimbursement" could be made to the political entities, thus assuring them that they would not lose needed tax monies. Also included in the figures is $1,717,486 for annual operation and maintenance and $4,700,000 lor debt service. |