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Show v. r T OUR CUSTOMERS Southern Utah Power Company has filed with the Public Service Commission of Utah a Petition to increase certain rates and charges in Iron and Washington Counties. Coun-ties. - The cities, towns and rural areas which would be affected by these Increases are as follows: -w Iron County: Cedar City, Summit and Kanarraville. . - L Washington County: New Harmony, Pintura, Toquervllle, Springdale, Rockville, . Virgin, LaVerkin, Hurricane, Leeds, Washington, Santa Clara, Ivins, Gun- lock, Veyo, Central and Enterprise. The classes of service for which increases have been asked are: Residential and Commercial Lighting, and Commercial and Industrial Power. No change in rates is involved in-volved for the City of Kanab or Kane County, nor for street lighting, municipal use, irrigation, ir-rigation, resale, churches or schools in the Iron and Washington Counties. From time to time since 1930, the Company has been able to make substantial rate reductions, with resulting benefits to our customers. These reductions have been made possible by improvements in operating efficiencies, by Intensive load building activities, acti-vities, sale of appliances, by the rapid growth of the communities served and by extension exten-sion of our lines to adjacent areas, all of which increased the volume of our sales and reduced the unit cost of production. During this period of time, there has never been a dividend paid on the Common Stock of the Company nor has the company earned a fair return on its invested capital. However, the prices of materials, supplies and labor entering into the cost of power, and in particular the cost of fuel used at our plants, have increased so rapidly, particularly during the past four years, that the Company is obliged to secure additional revenues if it is to continue to expand. In that four year period over $1,100,000 has been spent for new plants and lines and more money must be obtained and spent to meet increasing demands for service. The earnings of the Company Com-pany under its present rate schedules are inadequate to finance additional plant expansion. ex-pansion. In 1930 when the present owners acquired the property, the initial block of 30 KWH in the residential and of 50 KWH in the commercial lighting schedules, in effect in Iron and Washington Counties, was 12 cents per KWH less a prompt payment discount dis-count of 10 per cent, or 10.8 cents net. Under the rates proposed in the application to the Commission, the bills for 30 KWH of residential and 50 KWH of commercial service compare as follows with the rates in effect in 1930: Bills for 30 KWH for Residential Service Gross Bill in 1930 $3.60 Net Bill in 1930 $3.24 Proposed net bill Cedar City :. $1.96 Proposed net bill - Outside Cedar City $2.26 Bills for 50 KWH for Commercial Service Gross Bill in 1930 .............. ..... ..... .... $6.00 Jct Sill in 1030 ..... $340 Proposed net bill Cedar City $4.50 Proposed net bill Outside Cedar City $4.75 For larger usages than the above examples, the differences in favor of the customers custom-ers are much greater. In 1930 the initial block in the general power rate was 100 KWH for $10 gross, $9 net Under the proposed rate the same amount of power will cost enly $6.00 The amount of the proposed rate increase is small compared "with price increases of other items entering into the cost of living, and is requested only because of the urgency urgen-cy of the situation. We will be pleased to furnish you with any further information on this matter , which you may request. SOUTHERN UTAH POWER CO. m Cedar City, Utah. I I I V";1 "'J n..li....l ,1.1 PiPM. u .,;.. I i, n I,,.. f , llMMllMMl.l,,.r.,1,,,,.,,,nl,,ll,,r ,;, ,.. , 1 1 1 1 III u |