Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-05-09
The Ontario Power Com
pany to Hereafter
Furnish Electric Power to
Canadian Government.
Which Will Sell it at Cost TO
municipalities.

Buffalo, n. Y, ay 8-John J. Albright
and Gen. Francis V Greene OF the
Ontario Power Company this afternoon
confirmed reports received from Cana
dian sources that the Ontario Power
Company has just closed one of the
largest contracts for the sale of cleo
trical power ever made in this vicinity,
the home Of electrical power COM
panies BY the terms Of the contract
the Ontario Power Company will sell
from 10000 to 100000 horsepower
every day and all day in the year to
the Canadian government.
The Canadian government Will sell
this power to various Canadian NUM-
cipalities at cost. The power will cost
the government 5000 per horsepower
up to $4,000 horsepower at the trans
former station at Niagara Falls, Ont.
where the Ontario Power Company IS
located 1t is estimated that the COM
pany will get from 100000 to $1,000
900 annually from this contract alone
For many years Canadian manufac-
turers have been trying 70 solve me
power problem in their country. Coal
is dear throughout Ontario, and that
ago it was concluded that salvation
would come through the use of electric
power, but il required years TO perfect
the details Of the deal just brought to
q close
The solution was known to be in
sight when the HydrO-EleCtrlC Power
Commission was formed. The govern
Tent, by the appointment OF this COM
mission, vas interes ted and on record
as in favor OF suitable deal with 4
power company. The commission was
a powerful one and had some imnor-
tant privileges. among them the right
to condem land. etc.
After much dclItcrdtion. this COM
mission hit upon the plan Of having the
government buy the power from some
power company and then selling the
power to the various municipalities of
Canada at cost. This plan was adopt
ed, and the time finally arrived when
it was possible for the commission IL
accept bids for the furnishing of the
power
Several tenders were made to the
Canadian government, but that of the
Ontario Power Company was the low
est and was accepted, the necessary
agreements being signed on Friday.
The plan Of the Canadian govern
ment is to build its own transmission
lines and deliver the power to the var
ious municipalities. the latter to have
the right to distribute the power. The
sales to municipalities VIII be at cost
and the municipalities will sell at such
prices as they may determine upon
With all that the Ontario Power Com
pany has nothing to do. The govern
ment is 20 issue bonds to raise funds
for the building lf tn" transmission
lines. and work on these lines will b.
begun just as soon as the bonds ar,
sold and the money for the building
of the lines is in hand.
Electrical men who were seen hy 4
Commercial rC porter cclIrc the con
tract just made by the Ontario Power
Company is ideal in character. The
company has no worries except thDS,
attending the production of power. Its
customers will bc furnished through
the municipalities to be supplied II,
to 5000 horsepower, the company Will
get $40. 10 per horsepower. Above that
amount the company will get flat
rate OF $40 per horsepower.