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Show 36 TOWNS IN UTAH OWN AND OPERATE WEIR OWN ELECTRIC POWER SYSTEMS mwmwMM MORE Questions and Answers About the Proposed Power Development Plan for Our Town and All of Southern Utah . . u Mia. nnH Dixie Rural Electric Association: 1 Will Issuance of the Bonds Increase or The power system which serves Cedar City and Charles Sullivan Wallace Iverson t. ri D : PJ,r;w? surrounding area is owned by the Southern Utah j c sturznegger Evan J. Woodbury Decrease LleCtTlC nates in Veaar Olty . Power Company. This company, in turn, is rj H Heaton George Seegmiller It will LOWER them. At the same time these lower owned by the Washington Gas & Electric Com- Walter Cannon rates wil1 Provide a fund in lieu of taxes and, on top of pany of Tacoma, Washington, which is now in . , this, give the City a surplus to invest in City improve- reorganization under Chapter 10 of the Federal Utah-Arizona Electric Association: . ments or to lower the town tax levy. It is a matter of rec- Bankruptcy Act Under a directive of the Secur- Dr. G. R. Aiken Fred C. Heaton ord that Utah towns with their own power systems have ities and Exchange Commission, made pursuant Millard W. Black O. J. Watson lower town tax levies than Cedar City, which has one of to the Public Utility Holding Act. the Washing- Maurice Judd the highest in the State. In a report to our City Council ton Gas and Electric Company, and its trustees r.irk'nno Power Association- signed by A. F. Hartung of the engineering firm of Burns in bankruptcy, have been directed to divest them- uarKaTJpeo;iBl,rr Lewis Nelson and McDonnell of Kansas City it is stated that in the event selves of their interest in the Southern Utah wm r Mnrrl James Ellet Cedar City acquires its own electric system it will be Power Company. In other words. THE SOUTH- npVv'pv Hi f f ord Leland S Haws able to make a surplus of at least $34,500 a year, even af- ERN UTAH POWER CO. MUST BE SOLD. IT W L Davis Bernard Johnson ter rates are cut back to the level of last March- IS UP FOR SALE. The S. E. C. order was signed Ja; '' IIenderson Orson Barnhurst August 13. 1948 by Oral L. Du Bois. secretary Heber C. Covington Birt Gardner How is All This Possible? File Numbers in the case are 59-22. 52-27 and Because the profit made from operation of the system I t. w i j i 4- .... t i n, .i i tti i will be going to you instead of Out-of-State owners. The A plan has been evolved for local people to Who Qre fae Directors of the Southwest Utah Southern Utah Power Company NEVER has been locally Power Federation, and How are they Chosen? owned, rfiff atTS Siffi 62WiSS HowMuchWill Cedar CityPayforits city to buy that portion of the system which Lon Christensen Escalante Valley Electric Ass'n. tlectnc oystemr serves them. The plan provides not only a way to Dr. G. R. Aiken Utah-Arizona Electric Ass'n. It will pay $336,327. do this but a way to improve and expand the pres- Evan J. Woodbury Dixie Rural Electric Ass'n. ,. . . , . . ..0 ent facilities. About 800 rural families who do Reed Burr GarKane Power Ass'n. IS IhlS a rair Frice and Who Determined it.' not now have electricity would receive it under The City Council of Cedar City selects its director and Yes. In fact it is a bargain. Burns and McDonnell En- the plan. It is our purpose here to explain this the board of directors of the Associations select theirs. gineering Company says (in the same report mentioned plan and discuss its benefits. IT IS THE ONLY above) that the City can pay up to $400,000, and still en- PLAN YET PROPOSED TO COMPLETELY . , , . . . 0 joy a bargain. The figure was determined by Walter L. SOLVE THE ELECTRIC POWER PROBLEM Are They Paid tor their Services r Wolff, REA engineer; by A. F. Hartung of Burns and Mc- OF THE CITY AND AREA. No. They serve without pay. Donnell, and by engineers for Edward L. Burton and Com- pany, bonding house of Salt Lake City. (A continuation of the questions and answers in Whrit i thp Term of Office for these Directors? , . ,m . . . last week's iron County Record). wftamme lermoiumceioruiesewirecioxs. I Cedar Doeg jqj participcxte in the sri . , . 1 . , Plan, What Happens? What is the Southwest Utah Power tedera- If Cedar Citv Votes to Participate in this The whole Pwer development project for the area is tion? iiveuuiviii . r .... dead. Without its participation: . It i's a non-profit Corporation, the sole purpose of which Pwer Development Plan, What Will be !. got one penny of the $7,885,000 set aside for the is to generate and transmit electricity at cost to its mem- the First Act of the Federation? Federation's project can be advanced, bers It will act as soon as possible to acquire the properties 2. Our agriculture and mining developments remain . . tt. o of the Southern Utah Power Company outside of the City. status quo. What IS its History? Then it will proceed to: 3- Hundreds of farmers in Southern Utah will go with- Forerunner of the organization was the Southwest Utah 1. Build a 6i million dollar steam generating plant at out electricity. Power and Development Corporation, which for nearly the City's edge. 4- 0ur va,st deposits of coal and gypsum remain unde- two years studied ways and means to get more electric 2. Build 1G0 miles of heavy transmission lines to carry veloped. Sonwere? the arCa" LeadCrS f th? Dcvelopmcnt Corpora Assodauons.' CUy and t0 th? l03d CnterS f Under Present Conditions, Are Electric Rates Hugh L. Adams, Parowan 3. Rehabilitate'existing .transmission lines. Loan funds, to Farmers Increasing or Decreasing? G. D. MacDonald, Cedar City totaling $7,885,000 have been set aside by REA for They are increasing. For example, the Southern Utah Judge LeRoy Cox, St. George this work. Funds for the project will be advanced Power Company within 17 months has increased its Gronway R. Parry, Cedar City by REA as they are needed to pay for the work. wholesale rates to the Escalante Valley Electric Associa- Anthony J. Isom, Hurricane tion 16.66 per cent. The power bill of the Association from A. C. Hatch, Parowan wn j i- m-v i j n r May 1, 1948 to October 30, 1949 was $57,323.30. The same Parley Moyle, Beryl Will Cedar City be UDligated in Any Way amount of power prior to the increase in rates would have Arthur Barlocker, Enterprise To REA or the Government' cost $47,786.64, or an increase of $9,536.56. Mathew M. Bcntley St. George N Th at , t borrowlng" any money f r0m REA Not only has the Southern Utah Power Company noti- Alvin Larson, Hurricane or th Government. It is borrowing from a private con- fied Escalante of higher rates - actually it has notified OdeH Watson, Kanab Ed d L B t and Compbany of Salt city. he farmers in that association that effective December 31, Dr. George Aiken, Kanab ' 19o0 it will be unable to supply them with any electricity. The reason, it says, is that "we are serving you at a loss". Why was the Federation Organized? As a Member of the Federation, is Cedar City Silwh7 iSrtJS?.6?.? iqS liht SI"" AsYan answer to the basic problem of the Development Obligated in Anyway for the Debts or K MEm? SSSS JgeSSS Corporation. Liabilities of the Federation? at the office of the Association. mooretheMembersof the Federation? toSSSig 0bligati0n t0 FederaUn iS Is the Loon to the Fedeation a Financial Risk EscalanteValley Electric Association To Southern Utah? Dixie Rural Electric Association Tq Cedar Citv Obliaated in Anv Wav to the No,i ReDavment of V03" tasbeen worked out on a Utah-Arizona Electric Association ? , ,2 TV D11CTiea X way xo me sound pay-as-you-go basis by REA. The loan will be se- CJarKane Power Association. Rural Electric Associations? cured by a mortgage on only the property which the loan No. Cedar City cannot be held responsible for any debts funds will acquire and build. No single person or group Who Hnntrols and Onerate the Rural or liabilities of the Associations. of persons will be personally liable for payment of the Wno controls ana operates ine nurai loan.The Loan Is Something to Secure the Future, rather Electric Associations? , than, a risk. The farmers and other rural people who get electricity If Cedar City Votes to Issue Revenue Bonds b.aC . t tt 15 from them. Once a year the members of each association to Buy its Own Electric Distribution Facilities, no rfa J?52?? ?L i meet and elect a board of directors which is responsible ...... & , r.. v i .lwo" rea ,as m?de many loans to rural people to help for the conduct of the Association's business. Each is an Will the People Ol the Uty DO Held Personal- them serve themselves with electricity. And they are pay- Independent business enterprise operated by local people ly Liable for Payment of the Bonds? 'nS back the loans ahead of schedule, showing that they for their mutual benefit. In this respect and many others, NO. The bonds will be retired from money collected are good, sound loans. Payments ahead of schedule they are comparable to Irrigation Associations. from the payment of your electric bill. In 'other words, ;4ta' about 20 million dollars. Iron County and Southern Escalante Valley Electric Association: when you pay your bill a small amount of it will go to pay Pan ca" tsam,e- Mcmei?,beA whe" the loan has for the bonds. Your property cannot be attached. Your tb.een Paid tne electric facilities will belong outright to you, Who are the Present Directors of these children will have no debt to pay. In fact, when your me people. Rural Electric Associations? JgJgPK, ctTXZyZ Will too Southwest Utah Power Federation Gordon Moyle Richard Thorley their electric bill will be still lower. The people of Cedar Pay Taxes? Chester W. Whltelaw arJey Moyle , City have been users of electricity for 30 years, yet the Yes. It will pay all State and County taxes levied against A. C. Christensen L. S. Tullls system that serves them does not belong to them and it. Of course, it will not pay Federal Income tax because F. T. Alberto the rates are going higher. Iff time to call a halt it will make no profit. For Lower Electric Rates VOTE IFOR THE BOND ISSUE December 30 ALL REGISTERED VOTERS, WHETHER OR NOT YOU OWN PROPERTY, ARE QUALIFIED TO VOTE . COMMITTEE OF INTERESTED CITIZENS H. E. CHRISTENSEN. SECRETARY t I |