| Show To the People of Cedar City We have hare been teen Informed by the City M Manager of Cedar City that the City Council has granted ranted our Company a franchise for a period of one year only without any demand demand or requirement of rate reduction and that the City I. I is going to proceed with 1 the buildIng bundIng building build build- Ing of a municipal light plant If funds can be secured i for that purpose The granting of a franchise to 1 0 our company and the building of a municipal plant here are matters that deserve serious cons Ideation by citizens of Cedar City and all available information should be considered impartially and on a businesslike business business- like bas basis before any action la Is taken It Is our policy 1 to inform our customers of all facts concerning our operations and our books have been open to the City a at t all times Our formal written application for a r renewal newal of our franchise has been before the City Council since sines August 9 1932 and has hu been available for public In Investigation ln- ln since that time AU All facts concerning our application have been public property and all questions questions ques ques- I have c been ana answered we red fully and to the best of our ability The Southern Utah Power Company has hu served the people of Cedar City in a like business-like and ef efficient efficient ef- ef manner Since February 1 1930 the date due th the property was purchased from front the old Dixie Power Company the company has spent well over three I Y i hundred thousand doll dollars in the purchase of new new- YI I equipment and in rebuilding the existing lines Unes and plants Service has steadily Improved and now is comparable with service in much larger larrer cities A sincere effort has been made to treat our customers fairly and to become good citizens of the ty Every worthy community undertaking has been liberally supported where our support has been re requested requested rev re- quested Including the opening of the bank banle Some criticism has been heard that our rates have not been reduced as fast as they should have been during the depression but we ask that you consider conI con con- cider alder the fact that our rates did not Increase during I the boom years of 1928 to 1930 The public has haa the I right to know all facts regarding rate matters When I we 1 assumed control of the Dixie Power Company I our efforts were first directed to the Improvement ement of If service and the Improvement of public relations through improved practices s. s Early 1931 serious consideration was given ghen to ta rate matters with the purpose of making rate redu The rate structure of the Dixie Power Company Company Company Com Com- pany was complicated by a large number of rates rate for residential service Some rates particularly our Irrigation rate and our heat rate were were lower thin Una rates elsewhere Some rates Including our lighting rates were rates were higher than our customers customer felt they should pay and were retarding retarding- the use of current A start was made In our of rate reductions reduction I when we filed on May 1 13 18 13 1931 one new and lower lower j I combination rate to replace the many many combination rates in use It took many months of effort to chang chan all of our customers from the old rates as each customer cust customer cus cus- t tomer had to be interviewed and shown that the n new w wrate i rate was better in his individual case Some power rates were out of line and threatened to shut down Industries that were employing a large larg number of or our customers Negotiations were entered Into and andi i rates were cre sharply reduced The Cedar City franchise became more and more t s Important to ta our rate reduction program Our pros prot program pro pro- gram WI was based 01 on our ability ability- to serve all aU of our c cus cus- cus s- s If It we wd lot tot Cedar Ci City y our largest customer we would have hate to g get h r rather than lower rates from th the remainder of our customers Consequently In 1931 we approached City officials for tor a consideration consideration consideration consider consider- of or Our franchise renewal We were advised to wait walt until after the municipal municipal- elect election on th that fall before be bt before be- be fore making application When the new Council too toot took office we e again asked consideration and we e were told that the City was not ready to consider our ap ap- Finally after repeated visits Mayor Granger Oranger Informed us that our application would b bf be considered and we Ae flied filed our application on August 9 1932 Our application promised an immediate rate rae reduction upon the he granting of an acceptable franchise franchise franchise fran fran- chise and a second one In hi 1934 When our franchise expired on 10 10 1933 we e were sere notified by the Council that they had bad not made an adequate Investigation of our proposed rates and of the desirability of constructing a municipal plant and we were ere asked to Accept a temporary franchise During the six months period from August Augu t to D o the Council had hold not made us a counter proposition nor invited us to a meeting to discuss the proposal It we submitted In our meeting with the Council In Fe Feb Feli It was generally agreed that if we would serve the people of Cedar City at as ILS low rates as u the City could do with a municipal plant and break even that there would be no logical reason for the City tl to build a plant In an attempt to settle the matter mattler and put In effect the lower rates we had proposed six months previously we made tha Council the following following follow follow- ing offer We agreed that upon the granting of a satisfactory franchise that we would lower the rates In accordance with our proposal that to determine what hat a municipal plant would Trost ost at Cedar City that three engineers be tie Jointly hired one to be selected by the City one by the Power Company and the third by the two engineers that we agreed to accept accent In advance the findings of this board of engineers and agreed to a clause in the tale franchise that would permit the City to cancel It if we did not do tw fills The City did not accept our proposition but Instead later authorized the Mayor Major to employ an engineer Later Mr Harry Bletzacker of Magna called caned at our office and stated that he had been employed to make a survey suney for the he City and asked for tor certain inform inform- We cooperated fully with 1 Mr Bletzacker and furnished d him promptly with all information he re re- re quested Although we had been Informed In hi February that the City's Investigation could be completed In sixty to ninety days and had been given assurance by th the Mayor and members of the Council Council that we would woul be given en an opportunity to examine the report and check the thi engineers engineer's findings th this was wu not done The City Manager refund to give us any Information concerning concerning concerning con con- the report and we were not given gl a copy of the report until after arter our meeting with the Council on Saturday August 26 At this same meeting ani before we h hid had d any opportunity to study the report the City committed themselves to the building of a a. municipal plant While waiting in vain for the Mayors Mayor's engineers engineer's deIa delayed delay delay- ed report we r information to the effect that the Mayor had signed a contract with Bletzacker whereby the City agreed to employ him as construction tion engineer If the City decided to build a muni municipal plant and in which event vent Bletzacker was to get a u certain per cent of the cost of oC building the plant Un- Un If this were true the City could not expect expect expect ex ex- an unbiased engineering report as the engineer stood to benefit financially if the plant were built Members of our organization called on the City Manager and requested to see a copy of the engineers engineer contract and although any taxpayer should have ac access ac ac- access cess to public records we were refused the right to see the contract As the City CUy has refused to make this contract public we cannot believe that the people of Cedar Cly will 1111 have faith in the engineers engineer's report reper at least least of of or th the thi copy particularly true a as our This Is such essential information information In Information in- in not contain engineers engineer's report does or Of sizes of pf the engines formation as the number or generators enera rs In the proposed plant Council In February w we In our meeting with the franchise at that time agreed to accept a temporary could not do so In the fu fu- fu but notified them that we e franchise granted by the City ture The one year that thu assurance Council certainly does not give us we wilt will be all allowed ed to serve Cedar City for any long as other same period bl but It Is 15 possible to consider than a temporary franchise The acceptance of the theone theone theone one year franchise on this basis ho however ever obligates us to a substantial rate reduction and we e have de determined de- de to stand by this promise of rate reduction even though the City Council has not seen fit rit to give us a which 1 would 1 fairly justify same contain the following following following follow follow- Rates filed flied in April of this year ing provision The following rates are contingent upon the granting of an acceptable franchise In all Incorporated ted cities cities or towns In hi the territory covered covered cover cove ed by this schedule in which the Company is now v operating under temporary or short shott term franch franchise Consumers' Consumers bills will be compute on both the re regular regular regular re- re gular and contingent rates Whenever er the contingent rate becomes effective it will be deemed to be re re- re to the effective date of this kh- kh d rebates w will w lt accordingly be made made to to custo Ule 4 under this schedule If we accept Se the th- 0 one Olle franchise therefore we must place thes these It ra rates es b. b feet as of April 13 U. U 1933 e Although we do not feel fed that we have fair treatment by City o officials we have faith bet been ill r. r people of Cedar City and know know that they JJ approve a policy polley that would needlessly Sacr I O plant and ud Investment that would harm karat the er Pea In hi the surrounding communities without any red tion In rates here and would involve Olve the public money on a doubtful project without o thorn unbiased unbiased Investigation Our proposal to tn meet t rates that the City can under tinder oa on a b blike busSa af like basis buI still stands Our offer to serve the toe p T of Cedar City under a five year ear franchise at t IS per 9 cent top rate and an average 46 8 cents Of a approximately per kilowatt hour r Is Ia better than the City con do for the people of Ced Char Cedar We have ha therefore decided to accept th the one was Jt yea franchise and to reduce our rates to a a. 10 to cent top a once We ask the cooperation of or our Ceo Cedar r consumers to the end that further reductions ca as c be made In the near future South Southern Utah Power Company BY THE BOARD OF DIRECTORS m PHILLIPS B. B SHAW JOHN S. S WOODBURY LEHI LEHl W W. JONES D. D H H. MORRIa REID H. H GARDNER LEO LOEB WEB DAVID HIRSCHI |
