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Show could Lonor roioo UPBL if loo cost ponor obtained A report by the United States General Accounting Office has concluded that Utah Power & light Co. would be able to "substantially reduce" Its rates for residential and Irrigation customers If the company Is successful in obtaining a share of low -- cost power from federal dams. The report was prepared for the House of Representatives subcommittee on Waterand Power Resources. Congressmen on the subcommittee requested the study after hearing conflicting views regarding a lawsuit UP&L has filed In an effort to obtain low cost government power for Its customers. UP&L serves 75 percent of the people In Utah and a part of southwest Wyoming, as well. But the government's Western Area .Power Administration will sell low --cost power generated at federal dams only to the 25 percent of citizens who are served by government-owne- d On October 19, the UJS. had lost. In fact, UP&L has always for Utah will hear the government's motion for summary Judgment in the case. A trial date could be set after mat hearing. -- utilities. In- tended to distribute any allocation of government power only to residential and Irrigation customers. This would substantially Increase the amount of benefit per customer. Also, the GAO report confirms that it Is reasonable to assume UP&L will be able to sell at least some of the generating capacity mat would be made surplus by receiving a share Government-owneof federal "power. d utilites who lose shares of power would not need to build new power plants, but could pur. chase power from other sources since there would still be the same amount of generatlngcapacityavall-sbl- e region wide. "We believe the GAO's reDort confirms the reasonableness of our complaint,'' said Frank N. Davis, president and chief executive officer of UP&L. "We believe there is a serious inequity in the West, where a privileged minority enjoys all of the benefits at the expense of the majority. We will coninue our effort to win fair treatment for people In the communities we serve." UP&L has committed that it would pass all of the benefits of a federal power allocation directly to custo- has repeatedly challenged this practice over the years. The company claims it is unfair that power Is sold only to a select few, even though all taxpayers funded the construction of the federal dams. Last fall, UP&L and about 150 cities and counties filed a federal lawsuit aimed at forcing a more fair allocation of the federal power. Groups that currently receive exUP&L would not earn a mers clusive access to the federal power reacted harshly to the lawsuit. In a profit. The company believes a fair share of the low cost power could March 6, 1987, news release by the lower rates for residential and IrriColorado River EnergyDlstrlbutors gation customers by 20 percent or Association (CREDA), government-owne- d power advocates said "If more. UP&L is allowed to rob us of this 'tlearly, that is a substantial benefit for 75 percent of the people low-co- st embedded resource, the In Utah," Mr. Davis said. outcome will be 'all pain, no gain.' Company officials also dismissed We stand to suffer dramatic rate of massive rate increapredictions increases, while UP&L rate payers ses for the existing preferred custowill hardly notice the difference In. mers of the federal government. their bills." They could soften the impact of rate But the GAO report confirms that Increases by passing the benefits of UP& L customers would receive subtheir remaining low-co- st federal stantial rate decreases if they repower allocation directly to consuceive a share of low-copower. mers through rates, as UP&L proThe government --owned power advoposes to do. Currently, many municates relied on an absolute worst -case scenario when making their cipal electric systems mark up the cost of their federal power and use prediction that they would suffer the profits to bolster other city budwhile UP&L gained little. gets not related to power service. To make their prediction, CREDA "If rates of municipal power sysrelied on a study by R.W. Beck and tems are forced to rise at all," said Associates. That study assumed that Mr. Davis, "it is simply an IndicaIf UP&L won the lawsuit, the comtion of the size of the great subpany would obtain large blocks of federal power and spread it to all of sidy they are currently receiving." Utility customers in the Pacific UP&L's customer classes. It also Northwest already enjoy what UP&L assumed that UP&L would not be able Is seeking in Utah and Wyoming. In to sell any exist ingpower generating 1981, Congress decreed that the capacity that would become surplus benefits of low-co- st -hydro power and that government owned utilites should be shared by all residential UP&L . -- a third. Those recently admitted to the Milford Valley Memorial Hospital were: Sept. 3, 1987: Lynette Barnes, Milford. Sept. 6, 1987: Brenda Johnson of Milford. Sept. 8, 1987: William A. Cannon, St. George; Eugene Mayer, Milford. Sept. 10, 1987: Utahana Asay, Milford. Sept. 11, 1987: Sheridan Rogers, Milford. Sept. 12, 1987: Charles W. Milford. Company officials said they believe the merits of the lawsuit are solidly in UP&L's favor. Contrary to assertions by government -- owned power advocates, the company does not have to totally invalidate the ' Mc-Cull- "preference" principle to win benefits for UP&L's customers. The company simply qust prove that the "preference" principle has been applied unfairly and unlawfully by the Western Area Power Administration. The Western Area Power Administration has agreed not to enter into any new contracts for the sale of power until after the lawsuit's trial. District-Cour- t Poetxy Gilford School Loch Contest "In the Child Nutrition Program, no person shall oa the grounds of The World of Poetry is offering a 51,000 grand prize in it's new American Poetry Contest. Some 200 prizes are being offered worth over $16,000. There is no entry fee. Poets may enter one poem only, 21 lines or less, on any subject, using any style. Deadline for entering is October 15, 1987. Winners will be notified on or before Decern -ber 15, 1987, in plenty of time for Christmas. A winner's list will be sent to all entrants. World of Poetry reserves the right to publish the winning poem. utloaal origta, sex, haadteap, be excluded frees Ptrtlclpatloa In, be denied Ubm-n- u of, or be otherwise subjected to dUcrlmlnattoe. U yoe believe roe have beta die criminated against because of race, color, national origin, sex, ass, or handicap, write Immediately to the Secretary of Agriculture, Washington, DJC. 20250." FINE Box ARTS .13 Milford. Utah 84751 Phone 387- - 260? IIRECTOR ttn ffleaer ANNOUNCES THE STARTING OF DANCE CLASSES IN OCTOBER CLASSES WILL BE GIVEN IN BALLET, TAP, JAZZ, MODERN, Tacos Buttered Corn Chilled Cantalope Deal Power Company Merger Looks Like A Good Deal For Utah View Merger as ve 'Good Anal a beneficial merger move Utah atepayers "It's hard to argue against an arrangement where everybody comes out a winner" unrelated to the merger. And for those workers, the large PacifiCorp organization may offer some employment options. Stockholder advantages. UP&L stockholders will profit from a premium value for their shares. The merger will also give them ownership in a successful, diversified company. Benefits to area. The merger will enhance the area's ability to attract new commerce and industry with the prospect of lower, stable rates. PacifiCorp has recently developed ties with Japan, Korea, China and other Pacific Rim countries. The states served by Utah Power can now become part of that activity. This editorial comment by the Deseret News seems to sum up reaction to the merger agreement between Utah Power & Light Company and PacifiCorp of Portland, Oregon. There are many good reasons for such a positive outlook: Lower rates. Rate reductions for Utah Power to $50 million up customers of 5 to 10-e- qual to $100 million over the next four years can be expected from efficiencies in combining the two systems. Rate stability. Permanent access to the low-co- st hydro power generated in the Northwest will help stabilize Utah Power's rates after the 5 to 10 rate reductions take effect. Reaction and comments. "By vastly increasing the efficiency of our power system, we will be better able to compete in our rapidly changing industry. We will be able to remain profitable for our shareholders and effective for our customers " Frank N. Davis, president and chief executive officer at Utah Power & Light Company per month Minimal employee disruption. The merger will operation." 2607 between and "Utahns and others who get a monthly electric bill from UP&L appear to be clear winners. " Deseret News editorial, August 14, 1987 FOR NEW STUDENTS: ,$3 (A lessons) BEGINNING AGE: 3 YEARS CALL "The prospects are very real that the merger of Utah Power & Light Co. and PacifiCorp will prove to be a 'good deal'for Utahns " The Salt Lake Tribune editorial, August 14, 1987 nies will be able to sell more electricity on the wholesale market. These revenues will help keep rates down. TEACHING FEE: $15 in the summer; Pacific Power's in the winter. They also peak at different times of the day. By merging, power can be shipped back and forth to cover those peak usage times. Delays need for new plants. Such a delay can save millions of dollars. If UP&L needs additional power to meet its summer peak, it can turn to its sister utility rather than build a new generating plant. Enhanced transmission network. The two companies' transmission lines complement each t, from other. Pacific Power's runs mainly the Pacific Ocean to Wyoming. Utah Power's runs north-soutfrom southern Idaho through Utah to the Arizona border. Increased sales prospects. Together, the compa- WILL BE ASSISTING IN REGISTRATION mora year may h, TEAM ROUTINES MAXEY -- "We think it is a good fit and makes sense. And I don 't see any problem with approvals. The way PacifiCorp operates they would retain Utah Power & Light as a separate operation. They tend to consolidate financing but other than that UP&L will probably remain a relatively autonomous AS WELL AS DRILL JAMEE -- wftfo Pacif iCosp pact to seal take a could lower rates, east-wes- ACROBATIC The Milford Tiger Booster Chib will be selling T Shirts at the football game this Friday Night. The cost Is $5.00. The shirts feature a picture of Milford High School on the front. Everyone come out and support the Tiger's against the Parowan Rams and bring that extra money to purchase a T Shirt. Buttered Green Beans Chilled Watermelon Cheese Slice Cake Milk MONDAY, September 21 1 & 1 & 3pra "DANCE BODY, 4pm Mon result in minimal disruption to UP&L employees. g The company will continue its program. This may result in some layoffs, but they would be Mark Luftig vice president, utility analyst, Salomon Brothers, Inc. cost-cuttin- -- Thr Fri to register NOURISHES THE MIND AND SPIRIT" ODflS) wm 1& fiDFtO I V.9 I In I LIGHT COMPANY 5j T-St- Jrts FRIDAY, September 25 Spanish Noodles Ideal operational fit. UP&L's peak demand occurs OF colling Kalian Spaghetti Cole Slaw Chilled Pears Hot Roll Cheese Slice Milk Power's will retain name will stay the same and the company its local offices. Its board of directors will continue to oversee the company. ACADEMY tfilk THURSDAY, September 24 UP&L will keep its local identity. Utah Ml Doocfors WEDNESDAY, September 23 Creamed Tuna on Toast Spring Salad Chilled Peaches Cheese Slice Milk color, re, te, or Thursday, Sept. 17, 1987, Page Gravy California Blend Vegetables Fruited Jello with Topping Cheese Slice Hot Roll UF&L signs si merger st .and .irrigation consumers regards less of what kind of utility serves them. Overnight, UP&L customers in Idaho saw their rates go down by TUESDAY, September 22 Whipped Potatoes with Hamburger 95817. would have to build new plants to replace the government power they Cinnamon Sticks Milk Says Editor and Publisher John Campbell, "I want the contest to help me find exciting new poets." Poems should be sent to World of Poetry, Dept. New American, 2431 California Stockton, Sacramento, |