Los Angeles herald., 1910-10-14
DISCUSS LEASING
AQUEDUCT POWER
Attorney for Corporations Sug-
gests City Sell Electricity
to Companies
CHIEF ENGINEER REPORTS
Problem of Distributing Energy
from Owens River Is
Considered
CHIEF ENGINEER REPORTS
tconilnnsd from paes pnsi

tCOntInued from Page Onsi
but this will not represent its great
est benefits, and should nto be CIV
en- more than due consideration. To
dispose Of large blocks of power to
industries employing but few men
would be q mistake.
FIRST INSTALLATION
Conditions here seem to justify an
original development of something
like 10000 to 10000 horsepower. Inc
cost of developing and delivering at
a central sub-station in the city
10000 horsepower peak load as tne
first installment will not exceed
81, 0.0OO. and the cost of a complete
distributing system, reaching all
consumers within the present city
limits for light and power, inelud-
ing street lighting, would be ap-
proximately $4250,000, such distrio-
uting system capable of taking care
of business so per cent greater than
the present and adaptable to extern
sions without extra expense. In or
der to give an idea of value in con-
nection with the commercial ana
street lighting business and not Tor
the purpose of recommending any
particular rate, profit or policy, IL
may be stated that assuming tnat
the city or any single concern with
the investment of $6,5c0,OO0 IN the
properties mentioned, had all of the
commercial light and power busl-
ness and street lighting, but exclud-
Ing railway power, it could estapnsh
n e-cent base rate, with o corre-
spending scale for light and power,
and receiving credit at the rate OF
$50 per arc lamp per annnm 1or
street lighting, or against the pres
ent rate OF $3.50 show an excess
earning of something like S7OO,OOo
per annum, after allowing 1or an
operating expenses, interest on the
S6,50O,OOO at 41a per cent, SINKING
fund of 21a per cent and proper ue,
ductions. These results are paseu
on conservative estimates, put
could not be accomplished with sew
eral distributing systems ana sew
eraI organizations operating to sup
ply the same service.
s3,SOO,OOO BOND ISSUE
At the time the issue of $3,5OO,OOO
of bonds for power purposes was
recommended the charter Hmlta-
tions would not permit or more.
The conditions in regard TO aque-
duct construction were such as 10
1ecessitate the expenditure of some
5000 900 in temporary work in order
to pass the water by power Sites
unless certain works in connection
with the power plants were pro-
vided for at the same time. Tne
necessity for providing FUNDS
promptly in order to make IT pos
sible for the city to profit by such
power opportunities at the compile
ton of the aqueduct was recog-
nized also, and as pointed out Dy
the mayor during the bond cam
psign SO, SOC, 900 would not only gen.
crate an appropriate amount or
power. 30,000-horse power peak, as
stated, but would leave at least
81 ,25O, 600 for distributing purposes,
which would cover a substantial
portion of the city and result In a
working system So much being
accomplished, it is evident that ad-
ditional funds should be provided
for extending over the whole city,
which work could be accomplished
thus placing the system in a posi-
tion to make a much better show
ing, whether 1t should have the
whole business of the city, as sug-
gested in the above hypothetical
case, or be under the necessity of
competing for business. in which
case the showing which the sys-
tenn could make would be quite
different, but the benefits to the
consumer no less. The present
peak load for light power in city,
excluding railway power, is ap-
proximately $17,500, so that 10000
horse power would care for several
years increase.
The wording of the ordinance
calling the bond election and the
ballot by which the people in a
ratio of seven to one authorized the
issue of $S,500,000 Of bonds indicate
an intention to provide in some
way for both the development and
the distribution of aqueduct power.
1t is believed that the city will en-
deavor to purchase existing dis
tributing systems at a fair valua-
tion and not proceed to install an
Independent system unless forced
to, and certainly should not.
EXISTING POWER COMPANIES
It has been suggested by many
that the city should sell power to
the existing companies for dis
tribution and resale by them to its
inhabitants. The city and its in
habitants have patronized the COM
panies in the past, and now has its
own commodity, and so long as it
stands ready to purchase existing
distributing systems at a reason
able price there is no justification
for such a claim. The question is
raised as to the effect on the gen.
Grating systems of the combined
companies. Their statements to the
city council OF January last show
that approximately 20 per cent of
the total power generated is used
in connection with the business in
question, being all commercial light
and power, including street light
ing, but excluding railway power
within the present city limits. 1t is
n fact that the yearly increase in
the generating business has been
20 per cent for many years, from
which 1t Is evident that with suf-
ficient notice neither the value OF
such generating systems nor their
usefulness should be impaired.
There is room in Southern Califor-
MIA for all. It is simply q ques-
tion of the city's sharing In the
business at least to the extent Of
its own consumption, exclusive Of
railways. Reports of companies to
the council show that their dis
tributlng costs in connection with
this service are something like
100000 greater than a very liberal
estimate on these costs to the city
for supplying the same service.
The proposition of selling to COM
panies for resale to the city and
its inhabitants, therefore, could not
be contemplated without involving
a uniting of the companies so far
as this business Is concerned. It
would perpetuate a constant temp
tation to interfere with the city's
policies, as we'll as the unfortunate
condition of a number of fits best
citizens having interests conflicting