The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1919-02-25

messages, etc.
Now to arrive at the cost of pro-
ducing current we must know the
total amount producing during the
period in which this expenditure of
$80,766.20 was incurred.
The only way that an estimate of
production can be made is from the
amount sold. This, for the period
covered by this report, was $780,
334.92, less ~$5,262.36 assuming
that the total meter deposits during
this period equaled the total refunds
on deposits), leaving a net income
from current sold of $161, 072.56
With allowances made for discounts
and power rates, a fair average price
for all current sold is assumed to be
s cents per X. w. II. Therefore, to
produce a return of $161, O72.56 at 8
cents per X. w. II. would require
that 2,013,407 X. w. H. be sold.
But from the records kept during
1918 previous to the destruction of
the plant it was shown that only AS
per cent of the current actually pro-
duced was sold. The balance going
into the operation of pumps, street
lights, free lights, etc.
Assuming that percentage of cur
rent sold did not obtain throughout
the period covered by this report,
that ii is below the average condi-
ton, and in order that we may err,
III need be, on the side of safety, and
to the disadvantage of the plant, we
will assume that the amount sold
represents so per cent of that actual
ly produced; then the amount ac-
tually produced during this period
would be 3,335,68O X. w. H., and
this amount produced at a total cost
of $~80,766.20 makes the cost per X.
w. H. "a cents.
The cost of the current actually
distributed to the user, during the
period covered by this report, which
cost includes all line material, labor,
repairs, maintenance and all costs
not attributable to material used in
permanent improvements is 1885,
$50 X. w. H., produced, at a total
distributed cost of s92,441.94. or at
2.75 cents per X. w. II.
In considering these figures l must
again call your attention to the fact
that production has been charged
with a large amount of expense not
in any way attributable to it, but as
we have no other definite means of
disposing of them we have allowed
them to be charged as plant expense.
No portion of the salaries of the
men regularly employed at the plant
has been charged to the w~aterworks,
while ii would be entirely proper to
so charge from 10 to Is per cent of
this item.
No portion of the superintendent
salary has been charged otherwise
than to production, power plant eX-
pense; whereas, at least SO per CEN
of this item amounting. at the pres
ent time to 5000 per year, should be
charged to line work and office ex-
pense, executive, reading meters, etc.
No part of the cost of repairs and
maintenance of the building in which
the pumping machinery is housed, OF
of insurance on the building or on
the machinery itself has been charged
to the waterworks, but all of this
burden is placed upon the electric
plant.
Now IL this generating plant would
be shut down and current purchased
from outside, the cost would be about
as follows:
To begin with we would find il
necessary to erect a new building,
which should be fireproof and place
the generating station in good run
ming order and so maintainin it as a
reserve unit to be placed in opera
tion In case of failure of the outside
supply of current.
This cost could be conservatively
placed at $25,000.00. Upon this in
vestment we would be required to
pay s per cen interest and create a
sinking fund of s per cent annually
to retire the bonds 1t the end of 20
years. This would incur an annual
expense of $4,000.
The value of machinery and equip
ment in the generating station a be
conservatively estimated at $4,000.
This machinery would d~epreciate
rapidly with standing idle, or would
entail some expense in maintaining ii
in good running order, and allowing
for insurance on building and ma
chinery, repairs and up-keep, ETC., the
cost of maintaining the unit in good
running condition can be estimated
at an annual expense of $1,000.
In maintaining this generation sta
ton in running order, Ready to be
placed in operation upon short notice
in an emergency, would require the
constant employment of at least two
good men. These men are now re-
ceiving approximately $500 per
year each.
This plant would be operated in
conjunction with the pumping plant
and 1t may be assumed that If the
pumping plant alone were to be OPP
Grated, 1t could be cared for at a la
Dor expense of one-half the above
mentioned sum. therefore, the labor