| Show Group of Citizens Petition City Council For Refusal Refusal Ask Ask For Municipal Plant City in no Position to Bond For Plant a 4 Present Power Company Advises Reduction in Rates if Franchise is Granted Council Has Been Considering Considering Considering Con Con- Proposition for Months 1 The application of the Southern Utah Power Company for a franchise renewal has been blEn a matter of public discussion during the past week due to petitions circulated by certain citIzens citizens cit cit cit- and other developments de mentioned mentioned mentioned men men- elsewhere In this issue The main subject under discussion regardIng regardIng regardIng regard- regard Ing the renewal of the franchise seems to he the matter of rates and we are doubtful If the remedy offered a n municipal municipal municipal mu mu- plant will solve the problem for those objecting A survey of the rates would indicate that while some municipal plants serve er at lower rates than those of the Southen Utah Power company that most of these are kept going by tax tax- While figures on municipal plants In Utah are not complete surveys surveys sur sur- veys es in other states show that where plants ate are really operating profitably the rates are but very little if any lower than what we are paying A survey made in Minnesota reveals that the average a tax rate in towns having municipal plants was higher than in those having private plants and the average bill for electricity under the I municipally owned plants was higher tho than II under the privately owned plants In connection with this rate discussion discussion discussion discus discus- sion it does not seem to be generally known or considered that the Power Company offered an Immediate reduction reduction reduction tion of rates as soon a. a as the franchise is granted and a second reduction In 1934 When the second reduction was made Cedar City rates would be as low as the present Salt Lake City rates Undoubtedly It costs more to furnish electricity in small towns than thanin in large cities and It seems to us that this reduction is as much as can reasonably reasonably reasonably rea rea- be expected The matter of the franchise has been before the council for five months and during that time plans for the financing of a municipal plant have been considered and it seems that every member of the council is convinced convinced con con- vinced that the only way for the city to acquire a municipal plant is to vote a n bond for the necessary funds which would mean the bonding of the city for from two hundred to three hundred thousand dollars an act that thatis is absolutely out of the question at the present time It is almost a n certainty that ninety per cent of the people who signed d the two petitions would vote against a bond issue of 00 and yet et that is the only way to get what they are asking for Before Defore Cedar City could Install a n municipal plant a large majority of the citizens must be convinced that It would be a good Investment which does docs not notI I seem to be Indicated by the experiences of the majority of cities we have studied in Utah As we understand it a franchise Is Isa Isa isa a license to do business and a permit to use the streets and alleys of the City in the conducting of their business busi busi- ness If the franchise were not re renewed renewed renewed re- re and the Power company continued continued continued con con- to use the streets of Cedar they would become trespassers and be subject to a fine for doing business without a license Licenses to do business busi- busi ness in Cedar City are ordinarily given for one year ear and a requests for a n li ll- ll cense cease is seldom If ever refused The stock of the average merchant can be removed ed from the city If the license la is refused and thus a merchant can protest protect protect pro pro- test his Investment under a one year license It seems to us the power company Is in a n different situation as ss their Investment Is represented in poles wire etc that can not be readIly readily readily read read- ily removed and that can be salvaged for only a small part of their cost In Incase incase incase case the franchise Is refused It seems impossible to build a municipal municipal municipal mu mu- plant at this time and Is a doubtful Investment at any time therefore it seems that a franchise must be granted to the Power company in fairness to them and because there is no other alternative The question then is How Irow long should the franchise be We understand that the life of electric elec elec- I power equipment is generally estimated at from 20 to 30 years and the Power company asked for a 25 year franchise We have also been Informed that the Power company finances new equipment through Is Issuing issuing issuing is- is suing bonds and the franchise should be long enough that these bonds can be sold at a low rate of Interest and thus reduce the company's costs and allow them to serve the people of Cedar Cedar Cedar Ce Ce- dar City at lower costs For these reasons we favor the city granting the company a franchise of sufficient length so that It will not be a handicap to them In these matters matters matters mat mat- and also of sufficient length so that the company will continue to Improve Improve improve Im Im- im- im prove Its Service by adding new equipment equipment equipment equip equip- ment as necessary One thing that Is not generally understood understood understood un un- regarding the franchise matter matter matter mat mat- ter Is the fact that a franchise to the South Southern em Utah Power Company would not keep the city from granting other franchises to other companies or would not keep the City from building a municipal plant at any time if It so desired This makes it possible for forthe forthe forthe the city to always protect Its Interests by threatening to build a municipal plant If the Power company does not keep faith with the tte City in the matter of ot rates or service sen The Southern Utah Power company is the second largest taxpayer in CeI Cedar Cedar Ce Ce- I dar City and also has one of the largest largest largest larg larg- est payrolls The company has furnIshed furnished furnished furn furn- the council with Information I showing that due to the fact that their headquarters for all their company company company com com- pany was in Cedar City they actually spent more money In Cedar City than they collected here from electric bills in 1931 The City is fortunate In havIng having having hav hav- ing the headquarters of the company here and should do nothing to lose this revenue The future of our county county county coun coun- ty depends to a large extent on inviting in inviting inviting in- in new capital to Invest In our coal and mineral wealth This capital will we ive to be furnished by large corporations corporations corporations corpor corpor- and it is Important that we treat the corporations we now have in ina a l fair manner We feel that the Southern Utah Power Company has earned arned the rl right ht for a franchise re renewal renewal re re- I newal and we think it Is to the best In Interests Interests interests In- In of Cedar City that they should get a n franchise of reasonable length |
