Evening capital news. (Boise, Idaho) 1901-1927, 1914-06-21
WRONG IDEA OF
RECENT RULINGS
OF COMMISSION
Member Of Utilities Commits
sion Explains Action in
Power Case and Reviews
Work of Board.

The public utilities commission has |
rendered no decision and made no order
that will prevent competition in the
electric light and power service in any
city or village in the Pocatello or Twin
Falls territory"
This Is the emphatic declaration of
Commissioner A. P. Ramstedt. ct have |
been advised that contrary impression |
prevails in the minds of many people |
but they are mistaken" declared the
commissioner. What the commission
did decide was that an intending COM
petitor could not enter the field of an
other company without first securing |
from the commission certificate of |
public convenience and authority.
The wrong impression that pre-
vailed undoubtedly arose in connection |
with the action of the public utilities
commission in deciding that the Beaver
River ompany-otherwise known as
the Idaho Power & Light company
could not enter the Twin Falls or Po-
tello territory without first securing
a certificate of authority. This APP
pears to have been enormously inter- |
preted by many as denying absolutely |
to that company the right to enter the |
field of its competitors.
The Idaho Power & Light company
took exceptions to the ruling of the |
commission and has asked the supreme
court of the state for a writ of re-
view, which was granted, and the case
has been submitted to the court, but
no decision has yet been rendered If !
the court sustains the commission, the
Idaho Power & Light company will
then ask the commission for certifi-
cate of convenience and authority. to
enter Twin Falls, Pocatello, or any
other city or village within that terri
tory and the application will then come
before the commission upon its merits
and decision will be rendered.
Authority Given by Law.
1T may be asked why the commits
sion was given authority to say
whether or not there should be compe-
tition at any point In answer to this
will say that 1t was the intent of the
law that the commission should have
such authority and the possession of
such power is in harmony with the
purposes of public utilities commits
sion. The law gives the commission
authority to fix rates and in fixing
rates the matter of competition is an
important consideration. Instances are
of frequent record where a rival COM
pany has entered the field of a compe-
titor and rates of such a ruinous fig
ure have followed as to drive one or
the other company out of business or
force a consolidation. In the event of
| consolidation, the remaining company
would have two plants on its hands
and in fixing rates that would provide
a reasonable return upon the invest
ment the aggregate cost of the two
plants would often have to be taken
| into consideration, and higher rate
would be required to provide just re-
| turn upon the investment. It is to
avoid just such conditions that the
commission was given this authority.
Honest competition is to be desired, but
combination means the reverse of COM
! petition, and where competition would
| inevitably result in ombination and,
| therefore, in monopoly, 1t could be of
no advantage to the public and pub
lie utilities commission would fail in
one of its fundamental purposes II 1t
could not prevent the monopolistic ten
denotes of avaricious corporations.
Tn this connection I may say that
the Idaho Power & Light company has
already applied for It's certificate and
| / have no doubt but that this supreme
court will sustain the commission in
which event the Idaho Power & Light
company already stands upon our rec
ords as applying for certificate and
their application will be heard upon
its merits and decided accordingly.
! las before stated, fair competition Is
desirable, but there could be no gain
to the public in opening the door for
ruinous competition. but the main
point that | wish to emphasize is that
the commission has not denied COM
petition. and the prevailing opinion
that the public utilities commission
had shut out competition in the Twin
Falls and Pocateilo territory, Is en-
tirely erroneous. The Idaho Power &
Light company automatically shut it.
self out by refusing to make applica-
tiop in the way provided by law"
/