Arizona republican., 1916-05-10
The Proposed Power Contract


 On April l7th published letter written on April l4th by W. $. Cone, Project Manager rela- the proposed contract between the Re clamaton Service and the Pacific Gas X Electric Company. together with of the contract which we understand has been tentatively approved by the Reclamation Commission
 In view of the vital importance this matter there seems to have been comparatively little in- terest taken in contract. although recently after investigation. a number of business men in cludng many directors of the chamber of commerce signed a statement directed to Mir. Cone, fsv- bring this new contract
 This contract has been presented by the local Reclamation officials the governing board of the Water Users Association, and the advice of their attorney Judge' Kibbey. they have believe. with great proprety refused take any action in this matter. as they very properly wish to do nothing which could even remotely be construed in any way complicatins the claim which the are making for d just reduction in the of the project
 In order to nteigently consider whether the contract a desirable both for the mem bers of the Water Users Association and the citi- of Phoenix. will review certain features which are determining factors in an intelligent de- cison
  made between the parties then controlling the Pacific Gas & Electric Company. and the Recla- nation Service, was executed on January 22nd, 19O7 for years from the date of first op- eraton but did become effective until october ist 1909 and therefore expires October 1st, 1919.
 A careful investigation of the the price Of and half per klowatt hour for power delivered under the original contract, was reasonable price under the conditions isting that time but is evident that owing to the economies developed since that period power produced by efficiently installed steam gas plants less figure than in 1909 when this contract into effect.
 The project manager, Mir Cone in his letter calls attention the fact that while the original contract permits the company a maxi mum Of 1900 kw at any time. not pro- vide that the company should agree to take any specific amount and the company claims legal right to practically cancel the supplying the bulk of it's needs for electrical energy bv the installation of steam plants. for which plans been prepared and estimates received and il further claims that unless contract is made at reduced figure, that in order to hold it's power customers 1t will be forced promptly construct plant to make it's power
 An investigation develops that the average use s of power under the existing contract by the Pa cifie Gas & Electric Company during the past year has been approximately eoOOOO kw hours per month yielding gross revenue to the Reclamation Service from this contract of about s75Oo per month As matter Of fact the actual amount re- ceiyed by the Reclamation Service from the Pa- ofc Gas Electric Company during the past year was $9l2ss.75. or about s7hz per cent of the total revenues from the sale of power to consumers un- der the project
 
 the various power plants connection with the project are completely installed the new units at Roosevelt ready for operation. the Tempe cross cut plant in good running condition, that the amount of power available for sale will be very greatly increased, this claim seems thorough ly justified
 The aggregate installed capacity of the various power plants if the water supply constantly ayaiabe. would be sufficient to generate an av- craze electrical energy equal ls25O kw-per hour It is caimed by very able engineers that this is an over-nstallaton in view of the water power available under normal conditions and that on a conservative basis these plants only be relied upon under normal conditions of the use of fri gaton water to supply constant average amount of power equal to about 5000 kw per hour
 The consumption of power by the Pacific Ga Electric Company during the past year is abou one-tenth of this amount, and Mir. Cone figures that n the future the power contract with thu Inspiration Mine and Magma Copper Company vii furnish very much larger to the Govern ment thcn the revenue obtained even under th present contract from the Pacific Gas & Electri Company.
 The present cost to the company, not includin it's cost of transforming and transposng is l. cents per kw hour and MT. Cone informs us that probably costs it 4 of to transform this cur