Show IMF A brusi business 0 ness pro proposition 1011 to the he people le of brigham city the following is a statement of the proposition the utah power light company made to brigham city to supply additional electric power this statement has become necessary in fairness both to fofi 11 the company and to the people of brigham city because of the serious manner in which the position of the company y has been understood w three facts should be distinctly comprehended and strongly requirements throughout the entire life of the bond bond iss issue ue b emphasized at the outset of the discussion an item a thrifty city may well consider 1 the utah power light company is not COrn compare pare this cost of a year aith seeking a franchise for the sale of electric power to individual consumers in brigham city or any cost of buying the additional other rights it does not now have 2 this company does not desire to buy control A j power needed nor eliminate the cites plant on the on the power basis of a five year contract the utah power contrary it has repeatedly refused to purchase light company will furnish power at the following rates the very water rights which the city now proposes 50 IL H P to buy in order to build a new and larger municipal H P per year plant per year H I 1 P per year 3 the company does not even take the stand that proportionate increases for larger amounts it may not be advisable at some time for brigham city to carry out the project of building a new the original proposition of the power company was based plant of greater capacity on the average requirements of cities similar to brigham city it estimated the need for additional power at H in other words the company had no purpose whatsoever in P for a full year which as may be seen from the above approaching the people of brigham city in the matter other tabulation would cost but a later statement by than on a purely business basis this company is a large the mayor and city manager showed that the special conditions producer of electric power which it has for sale at standard under which this H P would be used would rates it believes that those rates permit it to furnish the necessitate a cost of only at the companas comp anys wholesale additional power brigham city now requires more cheaply rates a reduction of from the companas comp anys original than can the city itself inasmuch as the city must expend a estimate large sum during a period of abnormally high building costs to construct its new plant in other words to secure the additional power the city manager declares is needed at this time by building a naw new the company strongly resents the charge municipal plant would cost a year that it has ulterior motive in offering its any to obtain the same amount of power at wholesale rates from power for sale to brigham city that it is the utah power and light company would cost only seeking a foothold for some mysterious purpose a saving of more than a year it desires simply to supply power to for a year the power company could supply 68 69 as this community at wholesale rates in the much power as the mayor and city manager say is needed at present so that even though the consumption increases same manner as it supplies it to logan hyrum radically it will still be cheaper to buy from the power company heber city price and other cities than to fo build under present conditions and there would be the additional advantage of having the here is the proposition cites supply supple connected with a great power system having 31 different generating plants instead of being dependent that you the people of brigham city might clearly dundei upon a single plant stand exactly the offer made by the utah power light the city would by no means abrogate its water rights by company to the city we are presenting it in the form of entering into such a contract for five years in fact it the following comparison could shut down its entire plant and remain inoperative for which is the cheaper yay way for brigham city to add to its seven years without any forfeiture supply of electric power at the present time moreover the contract would contain a provision that the 1 to build a new municipal plant and abandon city could cancel the agreement upon one years notice leaving the present one or i it free to build whenever lower costs warrant 2 to postpone such construction until building costs are lower and in the meantime to buy the of interest to irrigators additional power needed at standard wholesale it has been held that irrigators using electric current will rates under a one to five contract with the year have to pay a much higher rate if power is purchased from utah power light company the utah power light company this is on the assumption that the irrigators alone would have to meet the cost of building new plant added cost of increased service suppose then that they are forced to bear all the added cost of increased power As is well known the present state of the money market supplied through building a year as compared with makes it necessary to discount any bond issue heavily it would cost or a discount of 10 per cent at least to market the proposed issue of bonds of course this assumption is incorrect in the first place the utah power light company does not propose to interest and sinking fund requirements would bring an added sell to individual consumers but to the city in the second expense of a year place the city will determine not only what irrigators shall pay but also what shall be the rate to every other class of it is generally agreed that the cost of building building materials consumer and labor necessary to erect a power plant has just about reached its peak and while there is no hope of an immediate strictly business decline it is not unreasonable to suppose that within five years there may easily be a drop of 25 per cent this there is no desire on the part of the utah power light would effect a saving of approximately in the construction company to influence one way vay or another the forthcoming st costs if the project is delayed bond election in comparison with the total volume of the companas comp anys business the possible sale of power to brigham let us assume that the proposed construction is deferred city is not large enough to justify any more than a simple for five years bid for business and acceptance of th the administrations judgment in the matter here is what brigham city will save cost of marketing the securities put but the company considers it a question of most serious shall absolutely clear to the importance that its position be sinking fund and interest per for five people of brigham city and that no imputation against its year years saving in cost of construction good name and good faith shall go unchallenged it offers to sell its service to brigham city on precisely the same total terms as it would extend to any other consumer with the for five years same requirements making no special inducements and average this up and you will find it amounts to a asking no special favors it is solely in order that its year for five years the cost to brigham city if it builds position shall be thus clearly defined that the company the proposed new plant at the present time it should be tares takes this opportunity of presenting the facts in in the case noted that if building is deferred until the money market is normal and whether or not the bond issue should be voted next building costs 25 per cent lower it will cost As to only instead of 00 to build the proposed new week that is a question for the people of brigham city to plant a saving of this would therefore entail decide from the standpoint of good business or from any an annual saving of in interest and sinking fund other standpoint they see fit to take utah power li light company efficient public service |