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Show 4 1 Page 8 The Paper That Dares To Take The Utah Independent April 10, 1975 TOM BREITLING 1 I EMBATTLED ELECTRIC UTILITIES by Thomas 0. Breitling FORTUNE Magazine for March 197S has an article entitled For the Utilities its a Fight for Survival. The major thrust of the article is that the public utilities, such as the electrical companies, cannot continue ''to survive as privately owned businesses unless inflating capital and operating costs can be stopped. Thus, here again, just as in the case of the railroads, we see one of the major businesses in the process of being depressed or taken over by the Federal Government. This is not just our own conclusion. Rather this is a conclusion drawn by the author of the article whose name is Carol J. Loomis. QUOTES FROM FORTUNE A large part of our article this week will be direct quotations from FORTUNE magazine. For example. Loomis says perhaps 34 or more of the countrys privately owned electric utilities are laid-u- p with financial strains, in many cases severe. The author goes on to point out that in the past, growth of electric utilities has been automatic with growth in population and the growth in use of electricity, and this growth was so predictable that they were able to use an ordinary ruler, as they termed it, to project demand. From about 1960 the average annual growth rate in the public utilities was 7.4. But now. to quote FORTUNE again, growth screeched to a halt last year. This startling event shook the industry in two ways. It penalized earnings last year by forcing many companies to produce below normal levels. Of course the utility executives are now confused about what their long term demand for electricity can and will be. Particularly in the East there has been the cutback of new construction. and many of the nuclear plants and pumped storage plants have been stopped by environmentalists and others. The article goes on and gives 7 major projects that have been stopped. These were proposed by Public Service Electric and Gas in New Jersey, Jersey Qentral Power and Light. Virginia Electric and Power. Consumers Power of Michigan. Florida Power, Georgia Power, and Northeast Utilities. Again, as Loomis said, these actions clearly create a risk of power shortages perhaps 3 to 5 years from now with all the attendant implications that would have for the nations economy. HIGHER KATES This brings us to a question that frequently comes up but which is difficult to answer. That is, the question of higher rates. Loomis says, to get the money to build new capacity, the utilities obviously need to charge higher rates. A '' Stand J Doing that is a special problem for HOW MUCH LONGER WILL of the industry that is the 80 YOU REMAIN SILENT? private.i.e. (investor owned), as opposed to public (a term mainly The Si len t A me ricans W hy Are covering rural electric power coThey So Silent? operatives and government owned Are you one of them? Why? systems). The article goes on to say that if the private companies A re you a fra id to speak out? Why? try to get rate increases they run This is still your country. the risk of government takeover. If You have received plenty information so you cannot say you they forego, or are denied, these increases and then fail down the road heard nothing of what is planned to to deliver the required power they change the U.S.A. into a Soviet may face government takeover style U.S.A. You do not care to see what anvwav. Oddly enough, the prospect goes on? Are you ready to let of takeovers may not he at all had aliens take our freedom away news for the company stockwithout a squawk or a fight? holders. In today's conditions, a Speak up now or you may takover of a utilitys properties never be able to speak at all. might he the best thing that could Which happen to its owners. WHICH GETS SO SIC THAT suggests how deep the industry's ITARYCHHGOVEIMMENT YOI WART CITE YOU EVERYTHING problems go. (Emphasis added.) WILL ALSO BE SO 116 THAT IT CAR TARE ELECTRIC UTILITY STOCKS EVERYTRIH6 YOU'VE GOT WILLIAM E. MILLER DOWN Some of the other things covered in the article are the fact that electric utility stocks sell at about half book value. This is caused by a series of events related to inflation. As mentioned earlier. Continued on page 10 J s' Its Your Constitution... v ') BARBARA HUTCHINSON KNOW IT, Its Your CONSTITUTION..... Know It, Use It, or Lose It Too many people today are USE IT, OR LOSE IT The Worlds Most Enduring Document FOR "S, (X. o Js 05 5 R Sr a CS3 (0 09 R Js 3 B H 09 0) 09 D U H o Q O Explanation u t- O 4J N o o rQ 1 - How it z I K a. ui w 3 3 CO o How to affects your life, rights use it bi Legislative trends today i 3 CO orH a. (N 0 U1 Court decisions, examples, citations H O w co remains. But those same people, for the most part, wouldnt begin to recite its guarantees.. .because THEY dont know and for the most part short background of The Declaration of Independence With a u & uH AMERICANS FOR CONSTITUTIONAL JUST ICS . j are too embarrassed to admit they dont know. Actually this precious contract binds down those who would serve the citizens of this great coun-trToday that same citizen is the one who is bound by his SERVANT. Hopefully, this book, y. Its 8! id & s alarmed that our precious Constitution has and is picked away until the framework is all that Your CONSTITUTION Know It. Use It. or Lose It by Barbara P. Hutchinson will prove to be an easy reference and explanation of Know them, YOUR rights. demand them and you will be amazed how well it works. There is also a short history of the Declaration of Independence that has some points not generally known. The proceeds of the book go to the Americans for Constitutional Justice, Inc. for a defense fund to defend Constitutional issues in courts, both civil and criminal. BENJAMIN FRANKLIN t i 1787 Here God. is my creed. I believe in one Universe. the creator of the That he governs it by his Providenc.e That he ought to be In Constitutional worshipped." Framing Convention making a motion for prayer: have lived. Sir. a long time, and the longer I liver, the more convincing proofs I see of this truth. ..that God governs in the affairs of men. And if a sparrow cannot fall to the ground without his notice, is it probable that an empire can rise without his aid? 1 j id 4 |