Show Application For Increase Denied Deni d Utah Power Light company's ap application ap- ap application a for increased rates In which asked for an average Increase of about 9 0 was denied by the Utah Public Service Commission In an 81 order released last Monday Tho The commission ruled that the com corn company pany pan had earned 6 return during 1948 in of the company's conten conten- contention contention contention tion that on Its proper rate base it Is Isnow Isnow isnow now earning less than a n 6 return and that the requested reque rate Increase would would- not result In a higher return than 6 0 now or In tho the Immediate future Tho rate base established by the commission Is approximately less than that of the company I In commenting on the decision George M. M Gadsby president and gen gen- general general general eral manager of the power company stated that In spite of the steady and large Increases In the costs of labor taxes fuel and materials which have occurred since 1943 to the date or of this application the company has not asked for nor received any rate Increase It was In 1943 he said that the commis cominis- commission slon sion ordered reductions in rates amount lag Ing ng to more than in Utah based on revenues in 1941 which reduction reduction reduction tion was vigorously protested without avail Ho declared that had this modest In Increase In- In Increase increase crease been granted the rates still would have lave been much less than war pre-war and well below the national average Mr Gadsby pointed out that an ade ade- adequate adequate adequate quate return on Investment Is 15 Import Import- Important Important ant in attracting capital to finance the company's construction pro pro- program program program gram over the next five lve years and an l that this would have been facilitated had the rate Increase been granted without any serious burden on any customer He said however that the company accepts the order without further pro proceedings proceedings and will do everything pos x pos pos- possible sible to procure the money and proceed with Its construction program so that the needs of its customers and growth of or Utah may not be Impeded |