OCR Text |
Show Council Hears Report on Contract Expenses At a special meeting of the city council Monday, It was reported re-ported by the hydro-electric com-mittee com-mittee of the body that In all probability Parowan City will have to pay to Southern Utah Power Company a sum of $2500 in excess of the cost of the power pow-er actually drawn from the com-pany, com-pany, under the contract ruling made last year by the Public Service Commission. ' The committee estimated that the city will draw about $9,500 worth of power from the com- pany, but under the service commission com-mission provisions, will have to I pay the company $12,000 at the end of the contract year on June 1 30. This is based on a peak load clause In the contract oked by jthe commission. The commission granted the power company a 14 per cent increase in rates on power Rold to Parowan City over the rate for the year before, and at the end of the present contract year It is felt that this raise will be considerably more than that I when past year's bills are consld- I ered. It was also decided to defer for this year, the installation of water wa-ter heater controls, which would make it possible for the city to cut off power to water heaters In sections of the city during times I of peak loads The installation of these controls has been recommended recom-mended by the city engineer for some time. The council voted to defer the Installation of these controls until un-til the city Is" financially better able to do it. A final vote on easing the bur-den bur-den of insurance costs of the city, cut that bill by the sum of $006.86 by eliminating the fire insurance from the buildings at the city race track and the liability lia-bility Insurance on the same place. It was also voted to eliminate elim-inate the liability insurance on the library, public lands and the city garages', etc., but it was not determined what amount this would cut from the yearJy bill. It was decided to retain the insurance in-surance on the penstock lines to the two hydro plants owned by Parowan city. |