Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-02-20

con erence ana all or us mere IN Inc
State House are heartily at Your serv
ice
Hon. BENZ. +. Cleaves.
Hon. Benjamin t. c!eaves of Biddefcrd.
chairman of the Public Utilities Com
mission, spoke on the subject, Taxation
and Valuat ton of Water Powers" follow
ing Gov Milliken.
! II apprehend you have no particula.
difficulty IN determining the value 20 he
placed upon existing developed water
powers" said Judge Cteaves. BY this d.
mean that II you find an individual or a
corporation In the ownership of dam,
fiowage rights and any kind Of machinery
at. or upon the dam. YOU can very readily
place a value for taxation purposes upon
that entire property. Carefully compiler
data shows that 20 purchase The storag
rights, build a dam and place at or upon
IT he necessary structures and appli-
ances 20 generate electricity-n other
words. completing a hydro electric plant
will involve a cost of about sl25 per
horse power. This figure VIII rot, under
ordinary circumstances, vary but little
times.
IF felt that I should lie absolutely
confined to the matter OF valuation and
taxation Of water powers, ] Should not
bring to your attention the matter pro-
pose 10 discuss briefly now but ! appre-
bend the information will perhaps be in
teresting. in view of the fact that a con
eli ha, am Ia r
the State should tale over all existing
water powers. develop all the undevel-
oped water powers and go into the bus-
ness Of generating and selling electricity
at cost.
: IF the state is to do this and is to fully
develop our substantial water powers, it
must be understood at the necessities
of the case will require proper utilza-
ton Of all storage possibilities. The
great AZiscohos storage reservoir cost
S12d per million cubic feet Of water stored
Al this rate 10 develop the storage posi-
biiit!es IN this State would cost about
s31, 20. 900. This would be the cost of add
ing $4,000 horse power TO the power tina
could be obtained without storage and at
cost of about s69 per horse power This
latter figure striklngly illustrates the
comparatively low cost Of adding TO ex-
sting capacity by developing storage,
inasmuch as the cost of the horse power
obtained by increasing the storage costs
but 1863 per horse power where original
development would cost about sl25 The
total amount of 2i-hour power based
upon practically the minimum now IN the
streams of the State has baen
Jos 100 horse power
Necessary Investment by State.
d This leaves lo2 ln> horse power ,Iude-
veloped az scattered sites. Assuming This
to he all commercial power ana that !,
can be developed at a cost of sl25 per
horsepower. at the present time, the to-
tai cost would be s2l0i2 800. To this total
amount Of more than s5j.000.ooO must De
added the sS5 100000 already investe. IN
existing plants Gess whatever is the
value of the - electric railroads. if the
State Is to take over existing plants,
fully develop their storage possibilities,
and develop all the existing power in the
State Even when this is done, the state
will then have 20 build a good many hun
meet up these new developments with the
transmission lines Of the existing de
yelopments in order that all may be
served. r. These figures give us perha ps
two lines of thougfa; they show, first
that for the State to enter into tllll own
ership and univ >rsal use of all the water
powers, an investment Of we'll over $50.
900 will probably ne required. And II
also shows rs thai we have within our
borders sufficient undeveioped energy 70
supply the whole State with all it's posi-
BILE needs and that a least some Of these
undeveloped water powers viii IL the
reasonably near future be required for
use and certainly have some presen,
value.
, Your task Of attempting 70 place A
value on any such water privilege is by
no means a simple or an easy one and
In the performance OF which ! am afrai
you can get no particular assistance from,
any person The fixing or non-fixing OF
such value is entirely a matter of judg-
ment and must depend upon all crcum-
stances to which l have called your at
tention and probably upon many Others
which will occur to YOU. ! do. however
feel that if your particular town needs
added revenue from taxes and II the
State feels justified in calling upon your
towns to produce more revenue through
taxation, for governmental purposes. you
can find many ways in which such reve-
nue. can be properly produced with
out over-burdenlng undeveloped water
powers"