The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1913-05-06
REGULATION vs..
COMPETITION
Public Utilities Commission
Brings New Problem.
PUBLIC AND CORPORATION TO
DEGREE ARE PARTNERS.
Destructive Competition Should Not
Be Allowed Where State Fixes Rates
for Service.


Utility Bill by the last session of the
State Legislature, new and signifi-
cant problem faces many of our local
communities. This question is that OF
Regulation versus Competition. Here
tofore, the people have had practically
no choice in the matter, and were in a
way compelled to pay the tolls i'm
posed by the local utility corporations
their only recourse being either to dc
without, or to invite competition OF
utility service. Since the Utility Bill
became law, however, the public has
an option to choose whether it shall
invite competition into community
or whether it shall regulate the rates
charged for electric or other forms of
service by the local company.
At first thought, one is likely to
conclude that wherever opportunity
affords competition should ge encour-
aged. This feeling is engendered by
the thought that rate war will re-
suit and that the consumer will reap
the benefit. On the other hand, the
fact must now be considered that the
Utility, Bill was passed for the express
purpose of regulating rates to be
charged the public for service given
by the various utility companies. In
other words, under this new law the
public at large is brought into part
nership with the local utility compa-
MES. AS the companies prosper by
the growth of their business and pub
lie patronage, the consumers will re-
ceive propOrtionate benefit through
compulsory reductions in rates. The
law specifically provides that no util-
ity company shall be allowed to earn
an income out Of proportion to it's
investment or fair valuation.
All over the country today, people
are coming to realize that monopoly
is an economic necessity, especially
in the electric service industry; that
competition does not make for cheap
energy; and that competition has been
replaced by regulation to very great
extent
Where the competition exists the
combined investment of the two or
more companies involved is duplicat-
ed, the operating and maintenance ex-
penses are necessarily doubled,r and,
consequently, the cost of production
of the service furnished to a-~given
community is greatly increased and
often doubled. The fact, too, that the
streets and alleys are greatly disfig-
ured by the installation Of two or
more sets of poles is another reason
why the electric service industry
should be confined to one properly
regulated company. The history of
power rate wars all over the country
has been that the rate cutting seldom
lasts more than few months, and
rarely, If ever, more than a couple of
years. After the thing is carried on
for a period of time, it is always ter
minated either by public sentiment
against the resultant unsatisfactory
conditions that are brought about,
through combination of the interests
involved, or through one of the COM
panies being forced into receivership.
The question of inviting competition
is one requiring serious thought, care
full investigation, and level-headed ac-
ton. 1t should be decided whether
the company already in the field is
capable to deliver and giving salts
factory service to it's customers. The
reliability of the people concerned
with the local company and their abil-
ity to furnish sufficient and adequate
service to the public in years to come
has an important bearing on the sub
ject Setting all other questions aside,
it should be decided whether the local
other things being equal, is
in position to furnish the same class
of service at as low rates as others
desiring to enter the field. If it is
found that they can supply just as
adequate service at just as attractive
rates, the proper course to pursue is
to ask the Public Utility Commission,
provided for under the new utility law,
to make an investigation and adjust
ment of rates.
If this plan is not followed out, and
competition is encouraged, the out
come will be that the streets will be
and the people dissatisfied
The community will have two poor
rather than one good company provid-
ing service, and, ultimately, the con-
sumner will have to pay rates for their
service that will net a reasonable re-
turn on the investment of the two or
more companies involved
Competition is all very we'll in the
Dry, but regulation without competi-
ton has proved far more satisfactory
In practice.-Advertise