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Show Power Company Files Answer to Commission Prf-iii-nt fhid.sli.y Points Out That Company K;lUs Ju-st C'niarifl to I.lviiijr Coniition.s; Company Ri-vi'iiue I Cirrully Itedui ed ; tin- S:im; Hl(fh SUtnlard M-iin laJnfd. "Now, a.; always, we stand ready to coopi-rate with the commission in a full determination of all fa.ts bearing uixm our service to the jx.-o-pic and uixm the earnings of our company." Till:; was tlie declaration of George M. Crad.by, president and general manatr'-r of the Utah Power and Light company, in filing witii the Public Utilities commission last week the company's answer In the pending rate structure inve.stiga- 5. The co: t of living, as of Dc 'ci-miz -r, 15.33, was 35 p-r cent abov the co t in 1313, whereas the aver j at;.- price paid for residential elec trie service in 1933 was 45 per cen iK-low 1913. ti. Commodity prices now ar I stftfudily advancing in line witl ! President Roosevelt's effort to re i store the 1920 ocnimodity price leve! 7. Tiie national average rate fo residential and farm service is 1 jxt cent alcove the average on th company's system in Utah. 8. The company's income has de creased to the point where it is fa. below a reasonable value whicl mifJht be assigned to its property. 9. Any reduction of ratos woulc result in further depletion of th comiany's income and would ma terially enhance the likelihood o receivership. 10. Th3 company is prepares promptly to proceed with the valu ation of its proijerties if the com ml:slon so directs. tion. The commission instituted the investigation in-vestigation on Its own motion January Jan-uary 18 to determine if the rates charged the public in Utah are just and reasonable. Mr. Gadsby said: "while we earnestly earn-estly desire the investigation to remove re-move suspicion and clear the atmosphere at-mosphere for progressive action, we hO5C to offer the public something more constructive than a mere defense de-fense and confidently expect soon to see a joining of helpful influences which will start the Industrial forces to a returning! prosperity." A summary of the company's answer an-swer which includes statements it considers vital to the problem of a consideration of rates follows: 1. The company's gross revenue has dropped from $11,144,861 in 1929 to $8,339,083 in 1933, a loss of nearly $3,000,000. 2. Most items of cast do not go down with declining revenues, but are largely uncontrollable. Such economies and reductions as could be made resulted in savings of $768,-156 $768,-156 in 1933, compared with 1929. 3. Taxes, excluding income taxes, tax-es, of the company have steadily increased, until in 1933 they mounted mount-ed to $1,324,026, about one-sixth of its total operating revenues. 4. Despite declining revenues, the company has continuously maintained main-tained a high standard of service. |
