Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1903-10-27
SEES FLAWS
In PROPOSITION
Interesting Letter from P. L.
Utley On Question of Furnish
ing Electric Power.
CONTRACT
WOULD MEAN A LOSS
Consolidated Company Must
Make Rate Lower or Contract
for Longer Time.
Mr.. j. A. GAYNOR,
Grand Rapids, Wis,

Mr.. J. A. GAYNoR,
Grand Rapids, Wis,
DEAR SIR:-Replying to yours of
the 10th, with copy Of proposition
for power from the Consolidated
Water Power s. Paper company, as to
my opinion Of the same will say:
Under certain conditions the PROPOSE
tiOn would be a good one for the
Electric & Water company. For
instance, if you were able to use 200
horse power or 400 horse power con-
tinousiy night and day and every day
in the year, the price named would
be cheaper than you could possibly
make it by steam. If you consider
the investment, care and mainten-
ance of the steam plant and buildings,
the cost of labor and fuel, you could
not make power for "a hours a day
in the year for $50 per horse power.
But, you could under present
conditions use even 200 horse power
only few hours each day. With
the Box factory off the circuit, L do
not think !you could use much over
100 horse power except during the
hours from dark in the evening to IL
p. m. and you would be paying for
power about 80 per cent. of the tim e
which you could not use.
For instance, suppose you accepted
the offer for 200 horse power. Your
peak load would probably average Is
kilowats above this amount for about
four hours daily which would cost you
at cents per kilOwat hour. $2190
which added to the $4,000 which you
would have to pay for 200 horse power
would make the yearly cost $3.50.
l believe That if you were to use
coal for fuel it would not cost over
$1,000 per year at most to run the
steam plant, without considering the
investment at all, but you will not
have to come to use coal exclusively
for good while as there will be wood
which can be purchased for many
years at a less price than coal.
If you could make contract for
long term of years, in which you
would have the option of paying for
from 100 to 400 horse power by the
year and you pay for the peak load at
2 cents per kilowat hour you could
pay for as many horse power by the
year as you could use continuously
and pay for the peak by meter. You
could arrange to change one of the
pumps al the power house so it would
run slow and run it continuously all
day and the latter part Of the night
and in this way save running it during
the evening at all unless there was
fire. You could probably arrange
with the city to require the lawn
Sprinkling to be done during the day
time so that water consumption
would not be so great during the
evening, when the electric light load
was on, and thus save running the
pumps at all in the evening, and in
this way manage to use about 100
horse power continuously night and
day. l think that if you required the
use of meters by all the consumers,
except those who use all night or
twelve O'Clock lamps, you could cut
the peak load down considerably. SO
that it would not cost you more than
about $4,000 per year for the peak load,
and then if you paid for 100 horse
power besides at $4,000 per year it
would cost you about $1,000 per year.
under present conditions. Ii you
could do this under long time con-
tract SO you could be safe in disposing
of the steam plant buildings and real
estate, should Say do ST., but for t~ o.
year contract. l do not see how you
could accept the proposition without
considerable loss. AS you know. or
from $1,000 to $4,000 per year for the
last two years to operate the steam
plant, and with d twO-year contract
you would be obliged to maintain the
plant in condition to use again, in
case you could not make a new con-
tract at the end of the two years.
You have an investment of about
$4,000 in the steam plant which you
would have to carry at an expense of
at least 10 per cent. for interest and
depreciation and you wonld find with
two-year contract that it would cost
you considerably more to buy power
than to make it yourself. Unless the
Consolidated Water Power s. Paper
company are willing TO make lower
rate than they propose or are willing
to contract for long period of time,
say twenty years, should say make
your own power by Steam. Ii you had
chance to sell power for manufac-
turing during the day time, So as to
! consume more all day, the proposition
would be different, and better still if
you could get some industry that
could Use power from midnight 10 six
/ O'Clock in the evening, then | can see
wh.s ra If woilld nav n rent tha noVar