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Show DM. IPpini'tas: "It is urgent to decide on a future power sources because opportunities are passing us by," said Power Department Director Berry Hutchings. THE CITY council and Power Commission Commis-sion held a joint meeting, reviewing the budget and discussing the avenues and needs for future power. "There is one statement that I would like to put to rest," said Mayor Morris Swapp. "I have heard people say that Bountiful Power has an excessive amount of money set aside for no reason at all and that power rates should be reduced." "AN INVESTMENT for future power could cost as much as $20 million and there is less than $1 million that particular budget. bud-get. We haven't got peanuts when we start talking about buying power." Oral Johnson of Haskins and Sells Accounting Ac-counting firm reported to the council that according to the recently completed audit, revenue has increased 14 percent while electrical generation has increased only 10 percent since a rate increase effective March 1975. THE AUDIT shows one of the expense items that have increased is employe benefits which climbed 24 percent. This includes contribution to city's retirement fund, group health and life and state industrial in-dustrial insurance. Total administrative and general expenses are up $127,000 at $205,694. The amount paid to the city in lieu of property tax accounted for 36 percent of the operating revenue of $730,371. Notes have been signed at 7 percent interest with the golf course and recreation fund accounts. ac-counts. CONTRIBUTIONS to other city funds amounted to $292,056. This is not shown as revenue but as contribution, Mr. Johnson explained. The amount of $9000 has been set aside as allowance for doubtful accounts. This is adequate for now but may have to be increased if it continues. "IT WOULD cost more for bookkeeping and administration than it would be worth to collect deposits," said City Auditor Ar-den Ar-den Jensen. This is required of large firms, but several of them went bankrupt this year, without enough on deposit to cover the b i 1 1 , he said. KILOWATTS USED on a per-person , basis has increased but it is difficult to analyze as corporations are combined with private persons in the statistics. Larger homes, more heating, lighting and air conditioning and more large businesses account for a large portion of the increase. THE HOSKINS and Sells auditor gave his opinion of the business, saying the city should be be proud of a very well run organization. or-ganization. "New York City could take a lesson from us," said the mayor. MR. HUTCHINGS told of the options under consideration for future power sources. A one percent share of the PLEASE TURN TO PAGE 2 M.-Fira(Qlirs: Si G(0) CONTINUED FROM FRONT Kaiparowits project would cost a minimum of $20 million. The city is a member of the Intermoun-tain Intermoun-tain Consumers Power Association, but later in the meeting, they voted jointly with the Power Commission to cancel their interest there for the present time. "THERE ARE three ways we can work with Utah Power and Light," said Mr. Hutchings. One way would be to resolve with their need on peaking capacity, exchanging power delivery of equal value. The areas have two different peaking periods because Bountiful is basically residential while UP&L serves more commercial com-mercial and industrial. HE EXPLAINED other possibilities in joining with them on surplus power from Arizona Public Service and Idaho Power Company. Another way would be to join directly with them on the future power enlargements as a joint enterprise. ANSWERING A query from the mayor, Mr. Hutchings said that geothermal power was ideal for Bountiful because of the city's size. "We are on record with Phillips Petroleum Pe-troleum Company along with other bidders to participate on capital investments invest-ments in the exploration plus development of generation facilities. "They are already producing steam out of the drilling. IN TWO years they will be looking for someone to buy excess power. However, there is a fear that unless there is some regulation on the sale of steam, the cost would be comparable, regardless of their cost, with other energy such as coal or oil used as a yardstick in their interest. "We have a hard enough time bonding for one-half million," said Mayor Swapp. The $20 million for Kaiparowits would be nearly impossible. Percy Pratt of the Power Company had a differing suggestion. sugges-tion. "Looking down the road, if we have the load, I don't see why we can't bond for it," he said. THE COUNCIL voted unanimously with the Power Commission to hire an outside source to investigate the possibilities and make recommendations. Outside expertise exper-tise would help support city officials and enlighten them in making the decision. "The study could be made by the Power Department but would require extra time in addition to carrying on the daily activities," activi-ties," said Mr. Hutchings. COUNCILMAN Sterling Beesley recommended recom-mended consideration of another rate increase. "The longer we procrastinate the stronger the shock. We are trailing behind when we consider that we will have to do to purchase future power for our populace," he said. Predictions have indicated that costs will raise 10 times in the next ten years. It's possible power bills could exceed house payments. ANOTHER unanimous decision was made to allocate $59,000 to support a feasibility study period by IPP. "If we don't authorize it, we will be in a position of wanting to sell our interest to someone else," said Mr. Hutchings. |