The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1911-06-07
Cost per kilowatt hour-so. osa1


Cost per kilowatt hour-so. oea1.
The estimating of the probable
net earnings from the plant after Ii
is in regular operation will demand
that certain assumptions be made
and the results obtained will depend
very much upon what those assump-
tons are. 1 have not attempted to
say what scale of charges should be
made by the city, for the sale of
electrical energy. In order, however
to give ONE idea of what may be
expected, | will here assume that
such scale of rates is adoped that
the average receipts would be SITS.
per k. w. h. With an expense of
production of % cents per X. w. h.
the net receipts would therefore be
rs cents per k. W. H., and the total
on a basis of 1,s9S,00 X. W. h. per
year would be s53,1440o net re-
cepits for the city. Earnings on
such a scale as this would be of ma
terial assistance in providing for flu
ture increase of capacity or for pro-
viding a sinking fund for the bonds.
1t. of course. goes without saying
ity and more business developed the
net earnings and possibility Of Great
ing sinking fund would be much
greater. The assumption just made
was based on the fact that 90 per
cent of the householders and business
men canvassed signified their n
tention to patronize the city plant,
agreeing to make five year con-
tract on a schedule based on a 10
per cent maximum rate.
1t may be objected that these as
sumptions are little too optimistic
and that it would be quite a while
before we could market the autput
of 1900 k. W. capacity. To illustrate
the result, if more severe conditions
be assumed. | will take a consump-
ton of but little over one-half the
foregoing; namely, one million kilo-
watt hours per year, and an average
receipt rate of only AZ cents per kill
owatt-hour. that is. 2 cents net. I'm
der these circumstances, the net
profit would be $4,000 per year.
| desire to call attention to the
fact that the plan has been designed
on the unit system, and that for the
initial installation it is contemplated
to use only sufficient units to meet
INN ediate requirements, but the ad-
ditional units can be readily installed
and that the proportionate cost Of
such subsequent increase In capaci-
ty will be very much less because
OF the work which has necessarily
to be done in the beginning.
as is we'll known. though hydraulic
power is exceedingly cheap so far
as cost of operating and maintain
ance is concerned, the difficult point
is the initial outlay which is always
required In view of the fact that it
is desired tc use a considerable por-
ton of the. city's bonding ability to
obtain funds for the construction of
a sewer system, and intercepting
drain, the policy followed in making
the preliminary plans for the power
and lighting system has been to keep
down the initial expenditure as much
as possible. Toward this end, COM
paratively9 inexpensive methods of
construction have been employed on
such parts, of the work as can be
ial construction, at a later date,
when more funds are available.
Nevertheless, for the construction of
the fundamental elements of the sys
tenn, a solid and enduring form has
been adopted for instance, it is pro-
proposed to use concrete for the
foundations and wheel-pit walls and
piers, which will be good for all time
Among the economies in the con-
struction of canal of sufficient ca
pacity only to supply the generating
units in the initial installation, the
idea being that when additional units
are required, the canal can be readily
enlarged, just as has been done on
'the Sunnyside canal during the past
two years
BY such means as this, we had kept
the total of our estimate down to
s275,000 but this does not mean that
it would not be desirable to exceed
this, if financially practicable for
with a bond issue of say 100000
we should have a much safer margin
and be free from the necessity of
practicing lot Of small economies
which though elective at the pres
ent would not help out later expen-
ditures but would rather work in the
opposite direction.
am very pleased that in your ex
ecutive session of Saturday. June 3,
your Honorable Body agreed that
the amount of the bond issue should
be 100000, as for the reasons Just
named this is a Very wise provision.
| 1t is likely that we may find it de-
sirable to make arrangements for a
d-by station which would guard