| Show power company asks raise in n local rate utah rower power and light company has applied to the state public service commission for per pel permission mission to increase its electric service rates sufficiently to boost its revenue from utah customers by appi approximately or 1 n per cent annually as applied to its present volume of business president george al gadsby of the company pointed out that some of the requested annual increase would go to federal and state governments in the form of increased income taxes the petition requests that tha t the proposed new rates become effective in the middle of the year so the estimated additional gross revenue for 1419 before taxes would be but 7 SM the requested in increase creVa declared mr air gadsby is necessary to assure adequate electricity in the future as in the past for the scores of new industries and new people who literally are knocking at our doors utah power and light company will have spent some ua tx by the close of 1053 to build new electric facilities to serve its fast growing territory our problem is to meet the greatly increased costs for wages coal taxes i and other expenses at the same time have investor appeal for our stock so as to be able to get large sums of money for expansion from outside sources mr air gadsby pointed out that while the overall increase is 9 per cent it does not apply uniformly to all classes of customers the proposed increase amounts to ac a day for 99 ia per cent of the companas comp anys residential customers i he be said and they will still receive electricity at a cost about 20 per cent less than the national average the requested monthly increase to re residential customers mr air gadsby explained ranges from 25 cents in the minimum charge to to CO 60 cents for customers whose monthly use is SO S kilowatt hours or more for a very few customers who require unusually large capacity an additional charge of per month per kilowatt of their requirements quire ments over 8 kilowatts will be made over the years utah power light company consistently has followed a policy of rate reductions mr gadsby declared this is the first time we have had bad to ask for a general rate increase it is now necessary so that we may keep the area we serve electrically secure prosperous and progressive the application points out that si since nce 1913 1943 the consumers price index has risen 38 per cent as compared to a 20 26 per cent decrease in the cost of residential electricity over the same period referring He to the rising costs of I 1 1 furnishing electricity the application sets forth that since 1913 the companas comp anys payroll has jumped C OS P per cent the cost of coal has jumped 59 69 per cent in salt lake city and 02 62 per cent at orem the com r banys steam electric plants in salt i lake city and orem consumed tons of coal during 1918 j and property and other taxes in creased some 19 per cent ii utah light company C according to the application is not i now earning and in the foreseeable future will not earn G per cent per annum on its ale rate base with its present rates the application closes with the statement that to maintain its credit so as to enable it on the most economical basis to raise the large amount of capital required for its construction program it adequate to attract additional i should be allowed to earn income bauit anital ao ital |
