Show d icil iii Yet About Giving anchise to So Utah Power Co leerS ACTS Report on Estimated Cost of 1 Municipal I Int mt Fails To Be Presented Local resented Local Power Company Furnished One Showing I Cost Would Be OPPOSED ACCEPTING POWER REPORT OTHER MEMBERS IN FAVOR FAVOR- INAL DECISION OF F MATTER l EXPECTED TO TOBE BE TERMINATED TOMORROW NIGHT meeting of the City Council night called for the purpose ig 11 Vibe the report of H. H T. T Blet- Blet i employed to make meke a af athe I f the needs and costs of an art power plant for Cedar City I Ih h report was not available Gardner and Ralph T. T Smale Smal- Smal e southern Utah Power Com Com- Com I a report of what the feels would meet the dei de- de I cedar City and what t such uch a add amid i i mid dd cost and also the er rate under such a set had met Thursday of offo af- af to fo hear Mr Bletzacker's Bletzacker re rech re- re re-j re ilch ch for various reasons was waa wasat at the time and although the I had all his data his report dy for formal presentation I Iwas I was given until Tuesday to I I copied assembled and ready I 1 presentation to the Council the report was not on hand handl handle not not e has been received but by the Council or made pub- pub It was va found that the C Council Council cU ot at 1 he hen hear l the Bletzacker report them ithem Utah Power Company i asked that the Council rem rea re- re a m i estimate made by them on ona onu u De a question stating that they lug Jling to give their report with- with ring lug seen the other report man can R. R E. E objected tug the es estimate te stating that i the Power company should heard until after the Bletzacker had gad been studied The balance Council saw no objection howl how- how rd nd l upon motion of S. S Leigh tf id I by Mrs Dewey Thorley the theras ns ras received and placed on I majority of the Council exI ex- ex exI I I themselves as anxious to get I question definitely set set- set set-I fl 4 that they were ready to act ue Mayor Granger Oranger was not I and nl the engineers engineer's report had hada hadea a ea flied filed the meeting was adI ad- ad I until Friday evening with could ild be taken at that time tims be- be I be-I that definite ac ache ac- ac aC 1 M he lie e temporary franchise granted power ro company expires on Sep Sep- W. W Mr Granger Oranger was absent I of having been called to Salt Ih 11 In connection with the build- build Cam of the Branch es ete Power er Company's estimate cost et of a satisfactory ver Plant and distribution ss s's r Cedar city at the rush kh they recommended should of 01 three units of KW 1 nj d MO KW tW id ld id would cost I Arad 00 and and distribution sy syThe sy- sy The estimate if Jf Interest and aud deg dep cia Ian on n i I eed at and to this R added which the coman cornay com com- k s an ay B In n taxes and which would II If the company was forced out p. p n making a total of I on the kilowatt hour Celia Cedar City for a twelve month period it was estimated that It would require an average rate of per kilowatt hour Since the water supply In Cedar City Is Sa inadequate for a hydro plant and coal development is not far along to make it practical to construct a a. steam plant the company's estimate estimate esti esti- mate was made on a Diesel engine plant only The report of ot Mr Bletzacker Bletzacker Blet Diet zacker sacker as it now stands Is b understood to deal only with a Diesel project also The company records show that the maximum load in Cedar City had reached KW and several times s the demand had reached KW and ting talking Into consideration that the demand is Sa naturally below normal due to the depression and to provide for a a. normal increase in load the estimate estimate esti estl- mate recommended the plant be Ue tie e- e I signed to handle a load of SOO KW The recommendation was that three units unit of and KW be in installed installed installed in- in stalled which would provide enough generating equipment so that if the largest unit is out of service the re remainder remainder remainder re- re of the equipment would carry the load The cost of such a plant was distributed as follows Diesel generating generating generating ing units miscellaneous plant equipment plant building I and grounds engineering tu- tu supervision and 10 per cent centor centI I I lor or making a e. total of 1 I IThe j The annual estimated oper operating t cats contained in he report were as follows follows follows fol fol- lows Labor fuel lubricating oil repairs and station supplies etc ora 01 or a a. total of This would make makeI I the average cost for plant operation I and maintenance per kilowatt hour Distribution expenses were estimated estimated at per year administrative administrative administrative adminis adminis- I at or general expenses I or a total production and distribution expense of Fixed charges on the basis of 6 per cent for in interest in- in terest and 5 per cent for depreciation amounted to which added to the operating expenses give an es estimated estimated estimated es- es annual cost to the city of The taxes paid by the company company company com com- pany would bring this up to which based on the company's sales for twelve months of kilowatt hours gives the required rate per kilowatt hour The report showed that the revenue of the Southern Utah Power Company Compan for the same period and the same number number number num num- ber of kilowatt hours was or an average of per kwh The company has also filed a proposed proposed proposed pro pro- posed reduction of rates which Is made retroactive to April 1 I which they es estimate estimate estimate es- es would provide an annual saving to Cedar City customers of and thus bring the average selling price per kilowatt- kilowatt hour to which Is 37 per cent le less les s than the estimated municipal rate of I The report giving estimates of cost I expense etc in much greater detail I than is in given here has been placed or on file In the city office j |