Ashland tidings. [volume] (Ashland, Or.) 1876-1919, 1918-12-31
OUR ELECTRIC SUPPLY


There is a proposition now befori
the council from The Slskiyou Com
pany for renewal of the contract en-
tered into three years ago. and which
contract expires tomorrow, to sup
ply the city with additional electric
power to meet local demand above
the capacity of the city plant. The
new contract reduces the minimum
charge from seven hundred to five
hundred dollars month and ex
tends the time for ten years, at tht
same rate per unit.
II Is a matter that should have
careful consideration before II Il
acted upon. Last year. We are in
formed, the bill of the SiskIyou com
pany against the city amounted tc
len thousand dollars. Under the
contract, during the summer months
when demand Is at minimum, the
city is compelled TO pay seven hun
dred dollars a month for its supply
whether II is used or not, while In
the winter, when the demand is great
the city pays for all over the mini
mum that Is required from the Siski-
yod company. The proposed contract
provides that the minimum be re.
duced to five hundred dollars PEI
month.
II is stated that a project to thrib-
BILE the capacity of the city plant has
been examined into and that II can
be accomplished at cost of not TO
exceed one hundred and twenty-five
thousand dollars. Also II is eviden.
that some provision must be made to
increase the reservoir capacity for
domestic water so the city will not
again encounter the injury incident
20 another water shortage like We
had last year. II is estimated that
by joining the two projects, at a cost
of one hundred and seventy-fivc
thousand dollars, both undertakings
can be practically accomplished.
II the council enters into the pro-
posed contract with the Siskiyou
company and uses as much of It's
supply as has been necessary In the
past, the city will, in ten years. pay
10 that company one hundred thous-
and dollars for It's additional electric
supply, and have nothing at the end
OF that period, except, possibly the
opportunity to enter into another
contract for its supply from the same
company.
We understand the ten thousand
dollars now being annually paid the
Siskiyou company comes out of the
present earnings of the electric de-
partment and leaves a neat balance
each year, with which interest on the
present electric light bonds is paid,
and the issue retired as they fall due,
besides paying the expense OF operat-
ing the local plant. Therefore the
department Is an exceedingly profit
able undertaking.
Should the city float additional
bonds TO the amount OF one hundred
and seventy-five thousand dollars
and thribble the present capacity OF
the electric plant, which II is said
would be enough to supply a much
larger demand than now locally ex-
lists. besides augmenting the domes-
tic water supply to ample needs, the
interest charge, at five per cent
would amount to but seven thousand
five hundred dollars year, two
thousand five hundred dollars less
than Is now paid the Siskiyou COM
pany for the service, leaving that sum
TO be applied on sinking fund to re-
deem the bonds at maturity without
levying a penny of taxes to meet
either principal or interest.
II would seem good business to
issue the bonds and make the i'm
proyement instead of paying out more
than the interest charge for service
which, when used, is gone forever,
and out Of which the city gets no
benefit except the power consumed.
In the last case the city would have