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Show 20-year Franchise Awarded Southern Utah Power Co. by City Ordinance A 20 year franchise for the distribution dis-tribution of electric power in Cedar City was granted to the Southern Utah Power company at a meeting of the City Council held Thursday night, Feb. 19. An ordinance granting the franchise was approved at the meeting of the council Thursday and appears ap-pears on another page of this issue of the Record. The Franchise does not exclude the granting of franchises to other oth-er companies, nor prohibit the city from building its own generating gen-erating plant and distribution system during the period of the franchise. The ordinance, in fact, stipulates that granting the franchise does not "constitute any limitation of the right of the city" ... to build a generating gener-ating plant. The franchise under which the power company has been operating operat-ing for the past 10 years. does not expire until March 23, 1954. However, How-ever, the new franchise ordinance ordi-nance repeals the old franchise. The company officials, meeting meet-ing with the council Thursday night to make formal request for the extension of the franchise, explained that it was necessary to take the action at this time to clarify the sale of company bonds that have been issued to finance construction of the new generating plant In Cedar canyon, can-yon, and other expansion programs. pro-grams. The power company facilities have been expanded tremendously tremendous-ly since the present franchise was granted in 194-1. The generating generat-ing capacity of the company facilities fa-cilities have been increased from about 4.50(9 kilowatts to more than 16,700 at the present time. Use of electrical energy in Cedar City has also increased greatly. I s. in 1911 was 3.575.510 kilowatts, kilo-watts, and this was increased to lO.iiSOJTii kilowatts used last year. Peak loads increased from h.tsi;! to ll,.'Ut; kilowatts. The new franchise protects the city and its inhabitants, and provides pro-vides for termination for any breach of franchise. In consideration of the granting grant-ing of the franchise the company agrees to pay the city an annual occupation tax of $3,000 per year for the first 10 years, and $5000 per year for the remaining 10 years of the franchise. The company com-pany has been paying the city $1000 per year under the present franchise. In addition the power company-agrees company-agrees to maintain the existing street lighting system and other facilities owned by the company and used for municipal purposes, and also agrees to extend a line to convey suitable energy to the water well belonging to the city and located at Martin's flat, and to Install suitable transformers and allied equipment to serve the well. Of course, this line will not be installed until such time as the city needs to add the water from the well to the culinary system. sys-tem. The company will also install and maintain a lighting system for the city park on Main street. This will include 12 lights at the park, located at positions designated desig-nated by city officials,, and served by underground conduits. The company agrees also to render necessary technical assistance as-sistance for the installation and maintenance of the control panel pan-el to be Installed at the site of the Enoch well drilled last summer sum-mer and added to the city water supply system." The franchise becomes effective effect-ive 20 days after publication of the ordinance or on March 18, 1953. The granting of the franchise was approved at the meeting Thursday and the ordinance was adopted with Mayor L. V. Broad -bent and city councilmen M. F. Grames, Willard Lunt. and Keith Smith present. Councilmen Frank Milne and J. L. Fakler, were not present. |