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Show i jk HOMETOWN NEWSPAPER FOR SAN jdAN COUNTY, UTAH SINCE 1915 50 cents Volume 85 Number 22 February 27, 2002 ir lir Y Empire Electric defends rate hike in the Monticello area Officials from Empire Electric Association discussed the new proposed rate increase for its customers in Utah at a February 20 public hearing in Monticello. (bottom) threw down Oh no!" South Korean skater Kim Dong-Sun- g his nations flag in disgust when he was disqualified and Apolo Anton Ohno (top) was named the winner of the gold medal in the mens 1 ,500 meter short-trac- k race in the 2002 Olympic Winter Games in Kenyon Fausett photo Salt Lake City. Health Care District involved in two improvement projects The San Juan Health Care District is involved in two sepa- rate projects designed to in- crease the availability of medical services in San Juan County. Discussion of a $600,000 grantloan from the Community Impact Board is a major topic of discussion at the San Juan Health District board meeting on Wednesday, February 27. The meeting is scheduled to begin at 6 p.m. in Blanding. The grantloan will be used to purchase new equipment at San Juan Hospital, including a new machine, a new digital room table, and new operating scopes for the operating room. In addition, the proposal will included a dictation system, software to operate the hospital pharmacy, and a new defibrillax-r- ay tor. In addition, on February 26 -after the press deadline health care officials were scheduled to hold a public hearing to discuss dialysis services in San Juan County. A variety of organizations have proposed the service, including the Health Care District, who was given some funds by the San Juan County Commission to look at the idea. According to Hospital Admin- - istrator John Hart, the health care district will not move forward on the dialysis project without the full cooperation of all groups involved. Providing dialysis treatment is expensive, said Hart. Hart said the district will consider dialysis service wherever it makes the most sense. "Nothing is set in stone regarding lo- cation. He added that having a dialysis facility adjacent to San Juan i copy .i n! w i , Empire is increasing their rates, effective March 1, for the first time in nearly ten years. The overall average increase is nearly 15 percent, with the actual increase depending upon customer type. Dave Rightley, of Empire Electric, explained to a group that included approximately 10 city residents that the meeting was necessary to meet state law. He added that the rate increase is necessary because of increased costs to purchase wholesale power and to help Empire pay a $7.5 million line of credit they were left with after a failed venture into telecommunications. After the increase, the Hospital in Monticello would be convenient for the doctors who Monticello area will have the will oversee the facility and be- highest electric rates in southcause of its proximity to the hos- east Utah. A residential cuspital. Having a dialysis facility tomer using approximately in Blanding has its advantages 1,000 kW hours a month will because of a possible location face an Empire Electric bill of near the nursing home, where $87.05, compared to $70.06 for there are a number of dialysis an electricity user in Blanding patients. Hart adds that hav- and $62.29 for a Utah Power ing dialysis care in the south and Light customer. county, where a large majority According to Monticello offof diabetes patients live, also icials, costs for street light will has its advantages. increase 35.8 percent, to $229 Hart says a dialysis facility per year. This compares to needs three or four machines street lighting costs of $72 per open six days a week and a pa- light per year in Blanding. tient base of 18 to 20 patients. A major portion of the rate inAnticipated participants in the crease is in the Basic Charge, group included representatives which increases from $11 to $15 of the Four Corners Care Cen- per month. Empire officials ter in Blanding and from the state that a Basic Charge is a Diabetes Control Project, oper- fair way to allocate costs to usated by Utah Navqjo Health ers. The $15 monthly Basic Systems. Charge of Empire Electric comThe district is hoping to move pares to a $1 per month charge forward with the proposal to in the City of Blanding, and a upgrade equipment at San Juan $.98 per month charge for UP&L Hospital. It's a case of old, older customers. and oldest with old scopes and Empire Electric officials state even older operating room table that the increase is necessary ma-- . and a Power because of a chine. Hart said, We hope to rate increase. promanew in a Emvides wholesale power to digital put chine which we can tie into the pire Electric and a large numIt had to existing teleradiology infra- ber of electric structure to receive immediate buy electricity on the open marreads through the University of ket last year, at a cost of millions Utah Hospital. of dollars. As a result, they Since the new implemented a ten percent price CT Scan at the hospital is online increase for wholesale power. and the high tech scans are read Jack Young of Monticello, a the at by radiologists University member of the Empire Electric ofUtah Hospital in Salt Lake in and boards of direca matter of minutes. The tors, said that the price increase, saves and combined with a cut in profit time teleradiology money. We have immediate margins over the several years turnaround and know were get- since the previous Empire rate, ting high quality reads in a mat- mandated that the company ter of minutes, said Hart. raise rates in order to protect 20-year-o- x-r- ay ld Tri-St- ate Tri-St- ate x-r- ay co-op- s. mid-Janua- ry Tri-St- ate "' imgfefi Felony court report - profit margins. Young said that the goal is to have approximately $1.5 million in net profit for the organization per year. That, combined with cutting capital credit payments to Empire customers, will help the company pay the $7.5 million line of credit that resulted from the failed REANet ven- ture. We have to in- Young said, crease to meet the increasing demands of buyers. When Tri State had to buy on the open market, it about killed them. TV- i- State is building costly new plants, which will allow us to meet increasing electricity demands." Local Empire customers who are accustomed to receiving an annual capital credit check. in the mail will not receive that check for several years. Proceeds from capital credits will be used to pay the REANet debt. Young added that even without the REANet debacle, a rate increase would have been necessary. He added that the REANet impact will be in the delayed capital credit payments and in decreased profit margins for Empire Electric. Community members questioned if the rate is truly 15 percent for Monticello, as has been stated by Empire Electric. They state that if you factor in the decrease in capital credits, the increase in rates, and the fixed basic charge increases, the actual increase is significantly higher. In total, city residents stated that the rate increase, loss of capital credits and other factors will take an additional $200,000 in revenue out of the community of Monticello per year. Doug Allen, a member of the Monticello City Council and owner of the Blue Mountain Foods grocery store, said that the rate increase will cost his business $8,500 a year. Blue Mountain Meats, a wholesale food distributor and meat processing plant, added that the new rate structure will increase his costs approximately $1,000 per month. Frost said that he has to take costs into consideration in running his business. He added that if he can get a better price somewhere else, it is hard not to turn opportunities down. Frost added, It would almost pay for us to move. I would like to be able to raise my rates, but I cant because of the competition. The truth is, Empire Electric is not staying competitive with the competition. I See page 2 sets grazing BLM fee - See page 3 Oil disposal guidelines outlined - See page 5 Sanctions against local attorney - See page 7 Gala Olympic celebration... in Bluff - See page 8 Reggae star stirs up the kids - See page 9 Broncos and Bucks move on to 2 A state tournament See page -- The Caveman 10 dis- cusses - fair games See My View, My Cave, page 1 1 Another busy week in Monticello - See What's New, page 12 Still dry in La Sal - See Northern News, page 13 Monticello man celebrates 78th - See page 15 mxdfo? Monticello had a trace of snow Feb. 18. 19, 20 and 24. Blanding had a trace Feb. 18. I TO News Roundup.... Letters Society Sports I 2 6 8 10 Community News ... 12 15 Legals Real Estate 16 Classified .....17 |