OCR Text |
Show News Power Continued from Page 1 was suffering from high power enrates, said gineering manager Colin Jack. He said that at the time, he was told that Garkane wasnt interested in buying the citys power company. We asked for some numbers, and then I put together a proposal. Jack said that since his company is p owned, he first had to run his proposal past his own board for approval. On March 6, the proposal was presented to Mayor Adams and Dixie-Escalan- te co-o- the Kanab City Power Board. Jack said that the proposal was met with enthusiastic caution. "They couldnt believe that they could do it that cheaply, said Jack. Since then theyve been studying our offer and getting input from their consultants and attorney. The offer was that Dixie Escalante would acquire over $3,000,000 of Kanab Citys debt, assume their assets, and would give them a cash payment of any assets over the debt Jack explains that what has a value in a power company is its revenue stream. SOUTHERN UTAH NEWS WEDNESDAY MARCH 27, 1996 provide for all metering needs. But perhaps the most impressive benefit would be the substantial savings Kanab City power users would see on their bills. With a few recent exceptions, Dixie Escalante has historically had the lowest rates in Utah. Jack said on average, Dixie can offer a 6. 5 cent average on kilowatt hours, instead ofthe 9.2 cent that Kanab residential customers currently pay. Small businesses come out even better in the deal, with a 5.5 cent per KWH as opposed to the 9.2 cent they pay now. Perhaps most impressive is the large commercial rate of2.2 cents that Dixie We feel that it (the purchase) would benefit our members in future growth, said Jack. He said that his p would benefit by the diversity and potential co-o- L. as Kanab City entered into with Deseret, would not be as much of an issue since Dixie Escalante is one of the owners of Deseret. Jack says the benefits to Deals like this often have in it for people asking-what- s them? Why would Dixie Escalante want to take on Kanab Citys power company? City and the power board are being cautious. They want to give Garkane the opportunity to make an offer on the system. Even if the city decides to sell to Dixie Escalante, any kind of purchase agreement would take time, possibly up to two years. State law says that we must have an election (to determine voter approval), we must put the bid out on the market and no bid can be accepted thats higher than the appraised value of the system. While Kanab City Electric may Dixie Escalantes user market. Power board member Robert one day become a thing of the Houston said that hes pleased past, the whole issue is currently with the offer, but that Kanab just a power play. for widening its user base. What stops Dixie Escalante from offering low rates now, and jacking them up in a year? If we ever raised our rates to that of Kanab Citys now, our membership would revolt, said Jack. Weve got to keep our rates low to be competitive with other markets such as St. George. The rates for Kanab would be the same as for our entire cooperative. Jack says that Kanab users would benefit from competition in all mmKr One obstacle, the lOyear contract Kanab City power users would be numerous. They would become full members of Dixie Escalante, with full elected representation. There would be more power department support since the city only has one em- Escalante boasts. These rates are for the big power consumers that use over 50 KHW, somethingthat Kanab doesnt have much of, but needs desperately. Jack says that being able to offer light industry good power rates is a huge business recruitment tool. :r 0DOoQ(?f (j BUM PIE ployee, and Dixie Escalante has a pool of 30 employees to draw from. There would be two jour- BEAN CASSER3LE neyman metermen on staff to 6 Life Insurance thats right for you... thats what State Farm is all about.99 JUST PLAiN BEANS CLOSING COSTS 10 HASSLES - Slate Farm Life Insurance Compan Home Office: Bloomington, Illinois STATC HIM IMSUtAMCI L, Like a gxd neighbor. Stale Farm is there. Ever fee! paralyzed by your own confusion on how best to save? Whats the modem family to do? Well, a home refinance loan from Zions Bank isnt a bad place to start. Theres no closing costs and no hassles. And. with a 7 or lOyear loan, well purchase a homeowners insurance policy and pay the premium for you for one year through Zions Insurance Agency. Why, thats bound to save the family more than a whole year of eating beans. And we haven't even mentioned what you'll save thanks to our tantalizingly low rates. Hmm, maybe the modem family doesnt have it so tough after all. To apply, stop by and visit with your ree HOMEOWNERS NSURANCE FOR ONE YEAR. friendly Zions Bank representative, or give us a call. QfnE5fin)yQiy ZIONS BANK A ten year loan at 7.R would be 110 monthly pay mml of SI 2 of J 5.34 per SI. 000 borrowed erven vear al 7.5 Annual Peroentaee Rate i PRl would hr W immrbK per S (K0 borrowed This interest rate assumes that customer signs up ior Direct Payment from their Zicmt Bank account us their home refinance loan. The homeowners insurance is available on home refinance loam of SJA (CHJ or more from WiO erf ill he issued w Poht S5W standard The and m honr a subsidiaries. of to Joe maximum insurance is subject to aptrcnal iKJi.y has a S JM) its underwriting guidelines apply up its Repubiit Insurance Compam or one Zions insurance Agenvi. as affiliate of Zions Bank deductible and S500.(KK) m liability coverage. .Ml insurance premiums will he paid by Zions Bank for one year All pulu es w ill he purchased throh |