The Birmingham age-herald., 1913-06-15
POWER USERS WILL
GET ELECTRICITY
CHEAPER IN FUTURE
Offutt Explains What the
Alabama Power Go.
Is Offering
Oh CENTS PER HOUR
THE MINIMUM RATE
Big Cement Concern in Birmingham
District Abandons Steam Plant to
Use HYDRO Electric Power-Gads-
den Plant Safeguard Only

Use HYDRO Electric Power-Gads-
den Plant Safeguard Only
) Positive assurances were given inter
ested consumers in Birmingham and
Gadsden yesterday by the Alabama Pow
er company that material reductions will
be made to power users when hydro-elec-
trio powers is distributed here as against
steam plants in operation now. The an
nouncement was made by NJ. Webb Offut
assistant TO the vice president of the com
pany. in an interview yesterday. The rea-
son for the formal statement of Mr. Of
futt was an Interview published In Gads-
den that the steamsspower users of that
section would not get any reductions In
power when water power electricity is
sent here and to Gadsden
That statement. in the opinion of Mr.
offut, did the company snealeuahle harm
lnasmuch as II proba bly, inisled prospec--
tive users of water power electricity,
causing them to abandon plans to con-
tract for the new source of supply.
Mr. offut said in explanation that the
had been in operation only short time
and had been unable to reach all pros
pective customers. He added that the
experts employed in that department were
specially charged with the task of DEM
onstrating on paper beyond question the
fact that the power TO be furnished con-
sumers here was far and away cheaper
than the power generated by steam plants
and now consumed.
The rule, he says. applies more specin-
caly to the small user than TO the larger
corporations in this district. Mr.. Offutt
says that the truth of his statements and
an indisputable one Is borne out by the
fact that only recently one of the largest
cement plants in this state has abandoned
steam power and contracted for the hy-
dro-electric power from the Alabama
Power company.
Offutt Makes Statement
Mr. Offutt said yesterday in connec-
ton with the rates to be applied here:
Our company will make and distribute
electricity to consumers in this district
as well as elsewhere at a cheaper rate
than any consumer can manufacture
electricity or use steam power. If that
were not true 1t would certainly be a
collosal error on our part to spend the
millions that are being spent in getting
the power for the INDUSTRIAL centers of
Ala bama The statement from Gadsden
that gained considerable circulation here
was perhaps based upon the fact that
we are building steam power station
at Gadsden. That plant is being con-
structed only and solely for the protection
CT, ic i,aor
amount of money and is being built only
as safeguard against fire, breakages
and other accidents that might happen
to our lines reaching the immediate CEN
ters. That is the only reason for that
plant.
I'VE propose to sell power made at the
Gadsden steam plant not based upon the
cost of production at the steam plant but
based on the cost of production of our
hydro-electrlc power at Lock 12 1t is
certainly obvious that this will material
ly lessen the cost to the consumers wher-
ever supplied with our power.
"One of the largest cement plants in
the Birmingham district has abandoned
a perfectly splendid steam plant in order
to take our power, which is at reduced
rate. That certainly signifies that our
product will be far cheaper than power
can be produced by individual plants.
Have Commercial Department
I'VE have recently inaugurated a com
mercial department engaged now in solc-
iting mine owners and manufacturers of
this state for power consumption. They
are men competent to figure out for any
operator the difference between our pow
er production and the individual cost
These men are willing and ready to show
clearly that Alabama operators will get
a better rate than any section of the
bon, 4
velopment.
I'VE are prepared to give the services
of this department free to the power con-
sumers of this state whether they want
our power or not. We believe the abso-
lutely convincing points that will be made
In such a conference will result In our
power being used. This department Is
engaged in quoting rates that we con-
tract for which are low and will be
shown.
ain order to demonstrate clearly how
we will serve this community as well as
others in this power supply | will quote
an excerpt from the contracts we are us
ing and which are being signed up very
rapidly by some of the wisest and most
cautious operators in this district;
Excerpt From Contract
'Kilowatts, in the form of approxi-
mately so cycles. three phase. alternating
current at pressure of approximately
49, volts for which the consumer shall
pay a charge of one and twenty-five hun
dredths (Sl.25 dollars per klowatt per
month, based on the consumers maxi
mum average five minute load during
such month; provided, however, that such
load shall be figured at not less than Is
per cent of the maximum average five
minute load during the II preceding
months; and provided, further, that dur
ing the first year (or during the year
following any increase of capacity as
hereinafter permittei) such load shall
be figured at not less than IS per cent
of the capacity required to be MAIN
tanned At no time shall such charge
be for less than fifty go, kiowatts. 1
Second That In addition to the charge
for capacity, which shall be paid even
though the service may be suspended or
interrupted as hereinafter mentioned, the
consumer shall pay charge for energy. !
based on the number of lalowatt hours |
actually consumed each month, in ao-i
cordance with tile following schedule:
For the first 1900 kilowatt hours, or
less per month, 8 cents per kilowatt |
hour. /
For the next 5000 kilowatt hours, or |
less per month cents per kilowatt hour. |
..For the next 5000 kilowatt hours or |
,.-u - ,,,opti, cent nor ki1oWatf hour /