OCR Text |
Show To the Mt. Pleasant Taxpayers: 'A Statement Regarding the Municipal Electric Situation by Telluride Power Company On July 20th the Tax Payers will vote on whether or not the bonded indebtedness in-debtedness of Mt. Pleasant shall be increased in-creased by $40,000.00 to provide more electric power. The City owns an excellent power plant that is in good operating condition but that is unable to supply all the power needed in the Ciby during the winter nights, at which time of year the demand is greatest and the power supply least due to low water. The dim lights in winter are ample evidence of a serious power snorxage. Assuming that Mount Pleasant is determined that her people shall no longer be handicapped by a lack of Plertricitv. the greatest convenience and labor saving comodity tnac tne world has seen, the question arrises as to how this lack of power may be remedied at the lowest cost and with the greatest insurance of ample and reliable electric service for the future. Two plans are available. The City may build a second power plant or purchase such power as will meet the shortage. The present and future electric requirements of the City must be considered before an intelligent choice may be made between these two courses. For several years the power shortage short-age at Mount Pleasant has held the use of electricity below normal. Many desirable electric appliances have been unused by the people because of lack of power to make their use sat-factory sat-factory It is impossible to more tho roughly estimate the additional newer that would now be used in the Crty were it available. Mt. Pleasant and Ncpni are nearly alike as to population popu-lation resources, business develop-,.orit.v. develop-,.orit.v. and general stan- mpiiL ij - i dard of living. Nephi owns a power plant tnat has a summer capacity e-nual e-nual to, but a winter capacity considerably consid-erably lower than that of the Mount Pleasant plant. For the past seven vrars Nephi has received power from the plant of the Big Springs Power Company at Fountain Green suffic-fen" suffic-fen" to supplement the output of the cTtv Plant, with the result that dur-fng dur-fng that period the people of Neph. have had all power desired. Nephi nurchascs this additional power at 4c ,er kilowatt hour and her expense on this account has been as follows: lfi04 $1559 1925 $1364 1926 1446 KV7 S1726 1928 S2460 The large power bill in 1928 was due j to the unusual drowth which greatly reduced the flow of Salt Creek and the capacity of the city plant. Bearing in mind the similarity between be-tween Mt. Pleasant and Nephi, it is reasonable to suppose that had Mount Pleasant purchased power to meet her shortage during the same years and given her people all the power desired de-sired as was done at Nephi, her costs would have "oeen materially less because be-cause of the greater amount of winter power available at the Mount Pleasant plant. It is expected that the use of electricity elec-tricity in any community having an Tj-Quate supply will show a gradual yorrly increase, as new electric appliances appli-ances arc devised and their use be-cr.mr.-s more general. However there is no indication that the increase in use of current during the next ten years will be more rapid than during thf past decade; no indication of a 'uclden large increase in the use of : Irctricity. The experience of the prist is the best guide as to future expectations ex-pectations in this matter. The Mount Pleasant plant is now generating approximately 300,000 kilowatt kil-owatt hours yearly as shown by the meters at the plant. A liberal estimate esti-mate for increased use during the next ten years ,is fifty per cent or 150,000 kilowatt hours. . As the present plant is iar from loaded during most of the day light hours and after midnight, it could supply at least one third of this increase, or 50,000 kilowatt hours, leaving a shortage of 100,000 kilowatt hours per year ten years hence. The shortage during 1928 was approximately approximate-ly 25.000 kilowatt hours. Consequently the average yearly shortage over and above the output of the present plant for the next ten years would be 60,-000 60,-000 to 70,000 kilowatt hours, which is the amount of power to be generated by a new plant or secured from other source. The City officials believe that the present city power plant has been profitable prof-itable and the question is, would a second plant also show a profit? The I Consulting Engineer employed by the City Council has reported that a second sec-ond hydro plant of about the same capacity ca-pacity as the old plant and located on S the same stream and below it, and designed for partly automatic operation opera-tion will cost S44.053.00. Allowing for loal and incidental expense, super vision, unexpected contingencies, and usual excess of actual cost over estimates, esti-mates, the proposed new plant would undoubtedly cost Mount Pleasant not less than S55.000.00. A low estimate of the yearly expem1:-(Continued expem1:-(Continued on last page) To Mt. Pleasant Taxpayers: A Statement Regarding the Municipal Electric Situation by Telluride Power Company (Continued from first page) to the City for owning, maintaining, and operating tins plant will include the following items: Interest, 514 percent of $55,000....$2,8fi7 General depreciation, obsol-esence, obsol-esence, and major replacements replace-ments at 5 percent of $55,000 $2,750 Ordinary maintenance of dam, wood pipe lines, building, and machinery, also oil, waste, general supplies, etc $1,500 Total per year for above items only $7,137 An average yearly production of 70,000 kilowatt horns by the proposed new plant at a. yearly cost of- $7,137 gives a cost of over 10 cents per kilowatt kilo-watt hour. Telluride Power Company has made a proposal in writing to the City Council to extend its power lines to the city limits at the expense of the Company and to supply the City's power shortage and to carry the entire en-tire City load in case the present plant fails or is shut down for repair, at a rate not exceeding 4 cents and av-erging av-erging about 3'1. cents per kilowatt hour, with no minimum monthly charge but with the understanding the City will use current . to the a-mount a-mount of $1,000 the first year and $1,200 per year thereafter, and to reserve re-serve for the Citv a rjower suonlv of 300 horse power, providing the City will give the Company its excess business busi-ness over and above the output of the present city plaht for the next ten years.. The cost to the City for lines, transformers, switches, and other equipment needed to place this power on the City distribution system would not exceed $2,500. While the general trend of power rates is downward, the City would be protected against any rate increase by nn entirely legal contract provision giving the City the right to cancel the contract at any time within one year following such Increase. With such connection with the Telluride system the full capacity of the City plant would be used before any power would be drawn from the new connection and in case the city demand exceded the city plant capacity, capac-ity, the power shortage and that only would be received from Telluride. Under Un-der the present city electric rates or even rates that averaged considerably lower, the City would resell the purchased pur-chased power at a handsome profit and witnout burden to the taxpayers. Under this arrangement Telluride would acquire no franchise or other rights within the city limits and the people of Mount Pleasant would enjoy every advantage of municipal owner-i owner-i ship without suffering the usual dis-i dis-i advantages of such ownership, namely, i insufficient, uncertain and irregular i power service. Telluride Fewer Company is now un-I un-I d -r contract to have completed before November 1st of this year, a large capacity ca-pacity 44.000 volt transmission line-connecting line-connecting the northern end of its system at Gunnison with the system of the Utah Power and Light Company to the north, the transmission line to pass through the Sanpete Valley and Salt Creek Canyon, and also connect with the Fountain Green plant. By November 1st it will be possible to deliver de-liver power to Mount Pleasant from thi Telluride plants to the south, the Fountain Green plant to the west, or the plants of the Utah Power and Light Company to the north. Telluride P.;wer Company now serves Sanpete. Sevier, Piute, Garfield, Beaver and Millard counties. The interconnection interconnec-tion of the Telluride and Utah Power sy;trms will make available an unlimited unlimit-ed and reliable power supply for all business served by the Telluride system. sys-tem. A New Plant Means An increase in the City debt of approximately ap-proximately $55,000. A power cost of 9 cents to 11 cents per kilowatt hour. No help on power shortage for the coming winter. A power shortage from the closing down of cither power plant. . No power service if both plants are down. Another City plant on the same treacherous stream, subject to violent and destructive floods. An unnecessary and unwarranted gamble with the Taxpayer's money in meeting a very uncertain situation as to the City's needs. A Telluride Connection Means A City investment of $2,500 or less. An average cost of about 3V cents per kilowatt hour. Ample power available this fall, no poor service this winter. Steady speed and constant voltage. City protected against increased power pow-er cost. Power purchased by City resold at a good profit. Profit from present city plant increased in-creased and under no hazard from the uncertainties of another power plant venture. Full insurance against power shortage short-age even if the present plant fails. All the advantages of municipal plant ownership enjoyed and the disadvantages dis-advantages eliminated. The general stimulation of business that depends on guaranteed power con ditions. No increased bonded indebtedness or added tax burden for the people of Mount Pleasant. This statement is made to the Tax-Payers Tax-Payers of Mount Pleasant with the hope that it will merit and receive their serious consideration, by, TELLURIDE POWER COMPANY H. B. Waters, General Mgr. H'ifiU wy hpi v i" iiiiH1 ni'ii iwuiii i win iiiiwp'w n |