El Paso herald. (El Paso, Tex.) 1901-1931, 1916-04-06
MAY NOT RENEW
P0WERC0NTRACT
Salt River Water Users
Governors Refuse Pacific
Electric Current.

4 Phoenix. Ariz.. April 6.-That the salt
/ River Valley Water Users association
viii refuse to grant the Pacific Gas &
Electric company another exclusive
contract 70 purchase and retail in PhOe-
nix power generated I'm connection with
the salt river reclamation project, is
I now evident The governors Of the as
ISOLATION have refused to approve a
contract submitted by the company TO
replace the old one, which expires next
year
In the new contract the coupanv pro-
posed TO pay the association less for the
power generated at the Roosevelt dam
and I'm the valley. but also submitted
schedule Of rover rates to consumers
10 agreed 10 forfeit its purchase con-
tract il it did not live up to the new
schedule.
subject to Several Investigations.
The old contract dates back q num-
Der Of years and has been the subject OF
several Investigations. Years ago the
Arizona Water company, which owned
the Arizona canal, granted the Phoenix
Light d Fuel company an exclusive
contract to purchase power generated
at its plant. and TO retail that mower
u Phoenix. The Phoenix Light & Fuel
company sold out TO the Pacific Gas d
Electric company and the reclamation
service. on behalf Of tho farmers took
over the canal. Government attorneys
held that the reclamation service was
bound to continue the old Phoenix
Light & Fuel company's contract
Under the old contract the Pacific
Gas g. Electric company must use a
constant current Of at least 1900 l1ilo-
watts. The proposed new contract
calls for q minimum OF 2500 kilowatts
For service up TO 100000 kilowatt
hours q month the new contract calls
for The present rate of - cents a
l.ilowatt hour. but above that n reduc-
ton of % percent is proposed.
The proposed new schedule OF
charges 70 consumers includes the re-
duction Of the minimum monthly bin
from 81 to Is cents. Il fixes the base
rate FOR electric service at nine cents
kilowatt hour, reduction from 10
cents.
At a meeting Of the governors to
which this proposed contract was sub
mitted, there was a general disposition
not TO enter into another exclusive
contract with any concern and also not
TO reduce the present charges for
power
Construction Charges Discussed.
The charges assessed against the
farmers by the reclamation service for
the construction Of power transmits
sion lines and canals were discussed at
the same meeting. The governors
agreed that the charges are entirely
too high and a vigorous demand for
their reduction will be made.
IL IS alleged that the entire power
division Of the project is in poor con-
diuon- The power canal above the
Roosevelt dam is useless because after
u was built changes were made at the
dam which, when the reservoir is full.
put the canal under water II is said
that to replace the dam which diverts
water into the power canal and to re-
pair damages TO the canal caused by
recent floods, would take at least
$500. 900.
No Assessments.
no assessment will be levied against
the members Of the Water Users assocf-
alton for the next fiscal year OF the or
ganization, which begins November
This was announced by the board Of
governors after making up the annual
budget The association viii have S26.-
200 in bank at the beginning OF the
Y ear 70 cover expenses estimated at
$4,000.