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Show ic A & a2Q0240v 3wfm2S ta30 W , P j i'f Straight talk from your power company about the rising cost of electricity. On September 26, California-Pacific the level of risk you think there is for Utilities Co. applied to the Utah Public your investment; the higher the risk, the Service Commission for a rate increase. higher the return you expect. The If granted, the increase would add 25.4 millions of Americans who invest in percent to our Southern Utah operating stocks, including the nearly 9,000 revenues, people who own our shares, expect the L 1 1 -tJiHJiayeto ask for rate :,. .same. , ; rr increases. Certainly, you don't like to We are obligated to provide adequate pay higher electric rates. So, we and reliable electric service to you, our thought we'd level with you and explain customers. To do that, we must borrow why we have to do it. large sums of money to buy and build California-Pacific acquired the the facilities to meet our obligations to Southern Utah Power Co. in 1958 and vou- About half the money needed for adopted that company's electric rates. those Purposes must be borrowed. Over the next 17 years, we reduced our we compete with other utilities, in-rates in-rates eight times while substantially im- dustries and institutions in the "money proving the operations and facilities market." Our ability to attract invest-here invest-here to make your electric service more ment caPltal and the interest rates we reliable pay for that money depend on our financial strength. Financially strong Then, just about the time we cornpanies pay lower interest rates than achieved virtually all of the benefits dQ financially troubled companies possible from economies of size, prices because the dsk tQ investors is lower. for just about everything began to rise And because those intrest rates are very sharply. The biggest single increase part of the tQta, charges induded in has been the cost of the electricity we yQur monthly 5ill it helps you for purchase for distribution here. Today, California-Pacific to remain financially that electricity costs us nearly 225 per- strQng The$e economic rules hold true cent more than it did just three years nQ maUer who provides your ?lectric a2- service. We were forced to ask for our first The Public Service Commission sets rate increase in early 1975 and the our rates based on what the PSC finds commission granted it in May of that to be a fair rate of return for our in- year. Since then we have had five more vestors. We aren't guaranteed that rate rate increases and have two more pen- 0f return by any means. We're just ding. The important thing to know given the opportunity to try to earn it. about all of those increases is that they in fact utility companies rarely achieve were forced on us just to offset the their authorized rate of return because higher costs of buying and bringing costs have been going up much faster electricity to you. Most of those rate than rates. hikes are the result of increasingly We wish all this weren't so. higher costs for the fuels used to However, adequate rates to match the ' ' generate your electricity. real costs of providing you with electric None of those rate increase ap- service will help us build and maintain a plications was intended to improve the reputation as a good investment profitability of our operations and risk a company which consistently none did. The application we filed on meets its obligations and pays a September 26 is the first we have ever reasonable rate of return for the use of filed seeking to improve our rate of its investors' money. It's the only way return. vve, or anybody else, can continue to Simply stated, rate of return is the provide adequate and reliable electric annual percentage of invested capital service to you. the people who own our common stock In the near future, the PSC will an- receive over and above the amount they nounce hearing dates on our ap- invested with us. When you invest in a plication. Before the hearing, we will savings account or common stock, you hold a public meeting to give you an expect your money to earn a return for opportunity to ask any questions you you. You expect that return to match have about us. WCat, i fokn i a-Pact fi c Utilities Company J V Teen-age boy: "Stop cleaning up my room, Mom! You're disturbing distur-bing the ecology of my total environment." Woman, at club meeting, to friends: "I never use sleeping pills--I just have Henry tell me again how he made a hole-in-one." Selection and service is still best at the corner of Center and Main. So when buying or selling real estate, visit Del Rich Realty. Center & Main, Cedar City 586-9922 |