Arizona republican., 1916-04-17
Deprived of Expression of Water Users Opinion, U. $. ,R. $. Appeals to Citi- zens to Look Over Pro posed Electric Contract

posed ElecUrlc contract
 Acting on instruction from Wash | ington, Project Manager W. $. Cone | has, in statement herewith, given ! to the people of the Salt River val | ley a chance to judge of the merits of the proposed new contract between the reclamation service and the Pa cific Gas & Electric company. It is for the purpose of elicitng opinions and testing the sentiments of the people of the project that this state ment and the accompanying draft of the proposed contract is made public. An attempt was made to get an expression of the opinion of the Water Users Association through it's board of governors at a recent meet ing, but the board, preferring to re- serve its right to object to provisions in the cost review boards report held it wise not to take any stand on this matter.
 The power division is held by the board to be one of the most expen- sive parts of the project, and one in which there is more reason to expect a reduction of cost than in any other feature.
 Consequently it declined to go on record. thus leaving the Reclamation Service without that endorsement that is practically essential before it can enter into a new contract with the Pacific Gas X Electric company, or any contract, for that matter. It is known hnXu f1llu "a N-alIaU will respond to this appeal for expressions of it's opinion, nor even how those opinions will be expressed. Neither is it known whether or no such un- official expressions will constitute that endorsement or disapproval on which the reclamation service must base its action. Yet the contract, and the facts relating to it's drawing up, are here presented, just as they have been given out by Mir. Cone.
 Mir. Cones statement:
 l. On January p, 1907 the United States Reclamation Service entered into a contract with the Pacific Gas & Electric company providing for sale of power to the company at the price of l5c per kilowatt hour, for all power delivered. This contract permits the company to receive a maximum of 1900 kilowatts at one time and does not call for any maxi mum guarantee. This contract was to run for ten years from the date of the first delivery of power, which was about october first. 1909.
 ?. In the latter part of October 1915, representatives of the Pacific Gas & Electric company had a con- ference with officials of the Water Users Association. also with officials of the United States Reclamation Service. claiming that it was impos- sible to retain their power customers under the present rate, as one of their customers had already left them and installed a Diesel engine. and was thereby obtaining a big reduction in power costs. Other customers were threatening to install Diesel ol gasoline engines of their own, thereby greatly reducing the revenue and in cidentally reducng the revenue tC the Reclamation Service.
 ,. The Pacific Gas X Electric company receives the current iron the United States Reclamation Ser vice at 25 cycles, and in order |, transmit same over their system, they have to transpose this 25 cycle cur rent to 60 cycle current, also mus step it down from 45.000 to 2,20 volts-the voltage used by the com pany in it's distributing system. Tn company claims that the curren costs it little over 1.9c by the tim it is on their switchboard ready fo distribution. The company also state that it has prices on a steam plan from the c. C. Moore company. reliable engineering firm in Sal Francisco, by which they guarante to furnish a steamplant and delive 6O-cycle current to the company O it's switchboard at a cost of abou 11sc per kilowatt hour, and it's con tention is that if the Reclamatio Service cannot reduce the rate fo power at this time to somewhere nea the cost of generating it's own powe by steam, it will be necessary for tn company in order to protect it's GUS toners, to install the steam plan and cease taking current from tn Reclamation Service.
 A. The matter of a new cOntraC has been the subject of negotiation since the latter part of October, lgl and the company has finally con cluded that a tentative form of con tract which is herewith enclosed would enable it to still supply it customers and allow it to make
 substantial reduction in rates to con sumers, and it is willing to give il customers more in the line of re duction than it would be receiving
 the rate proposed in this new cor tract is put into effect.
 ,. Figuring on the basis of la: years business, if the new rate wel given the Pacific Gas x Electr company, the Reclamation Servic would have received approximatel s23,O00 less than it would have re ceived under the old rate, for tf same amount of electricity. Tn company paid the Reclamation Sel vice last year about 10000. IT company claims that if this ne rate were put into effect it will rt duce the rates in Phoenix to such a extent that it will effect a saving
 the citizens of $2S,000 year, ar would increase the total consumptio
 6. This new contract has bee submitted to the Water Users Ass' citation for approval, and they hay taken action as follows:
 Upon consideration it was deemt inadvisable that the associate ebo,I1 l.ooo,x,o lirootl,. indiraot