The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1914-06-26
STATE COMMISSION HAS
NOT PREVENTED
COMPETITION

"The Public Utilities Commission
has rendered no decision and made
no order that will prevent competi-
ton 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. 81
have been advised that a contrary i'm
preston prevails in the minds of
many people, but they are mistaken.
What the Commission did decide was
that an intending competitor could not
enter the field of another company
without first securing from the Com
mission 4 certificate of public con-
venience and authority.
The wrong impression that pre-
vailed undoubted arose in connection
with the action of the Public Utilities
Commission in deciding that the
Beaver River Company-otherwiSe
lnown as the Idaho Power and Light
Company-could not enter the Twin
Falls or Pocatello territory without
irst securing certificate of authority.
This appears to have been enormously
interpreted by many as denying alb
solutely to that Company the right
to enter the field of its competitors.
The Idaho Power and Light Com,
pany took exceptions to the ruling
of the Commission and has asked the
Supreme Court of the State for a writ
of review, which was granted, and the
case has been submitted to the court,
but no decision has yet been render
ed. If the court sustains the Com
mission, the Idaho Power & Light
Company will then ask the Commits
sion for certificate of convenience
and authority, to enter Twin Falls,
Pocatello, or any other city or viii
lage within that territory and the APP
plication will then come before the
Commission on its merits and a de-
cision will be rendered.
1t may be asked why the Commits
sion was given authority to say as
whether or not there should be COM
petition at any point. In answer to
this will say that was the intent of
the law that the Commission should
have such authority and the posses
sion of such power is in harmony with
the purposes of a Public Utilities
Commission. The law gives the
Commission authority to fix rates
and in fixing rates the matter OF
competition is an important consider
alton. Instances are of frequent re-
cord where a rival company has en-
tered the field of a competitor and
rates of such a ruinous figure have
followed as to drive one or the other
company out of business or force a
consolidation. In the event of con-
solidation, the remaining company
would have two plants on its hands
and in fixing rates that would pro-
vide reasonable return upon the in
vcStment, the aggregate cost Of the
two plants would often have to be
taken into consideration, and higher
rate would be required to provide a
just return upon the investment. III
is to avoid just such conditions that
the Commission was given authority.
Honest competition is to be desired,
but combination means the reverse
of competition, and where competi-
ton would inevitably result in COM
bination and, therefore, in monopoly,
it could be Of no advantage to the
public and a Public Utilities Com
mission would fail in one of its funda-
mental purposes if it could not pre-
vent the monopolistic tendencies OF
avaricious corporations.
I'm this connection | may say that
the Idaho Power & Light Company
has already applied for its certificate
and have no doubt but that the
Supreme Court will sustain the Com
mission, in which event the Idaho
Power & Light Company already
stands upon our records as applying
for certificate and their application
will be heard upon its merits and de-
cided accordingly.
AS 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 Pocatello territory, is en-
tirely erroneous. The Idaho Power
& Light Company automatically shut
itself out by refusing to make appli-
cation in the way provided by law"