Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1920-06-10
POWER COMPANY RATES RAILS.
ED SLIGHTLY AND BIG POL
ICY LAID DOWN AS TO
STATE DEVELOPMENT

3oise, Idaho, June THIN a de
ciaion to which too little attentiO
to details was paid by the Bots
dailies, the idaho Pubic Utilitie
Commission emphasized it's policy G
distributing utility costs so as t
relieve any special class OF patron
from paying the expenses of tina
pa ticular branch of service but in
stead distributing it among all tn
users.
This was the case in which tn
IDAHO Power Company applied TO
an increase in the irrigation pumping
rate, setting up that the existing
rates, which were put in as a matte
OF experimental agricultural develop
m9nt, did not begin to pay the cos
o. supplying that particular ser
vice.
The Utility Commission comedies
that to be the case but instead Of
granting the increase asked by the
Power Company made a small gen,
eral increase covering every service
flu nished by the Company except
Ing power for cooking and domestic
water heating. For all other service,
Including irrigation pumping, a flat
increase of 1919 was authorized.
n the case of irrigation pumping
service this increase extends only to
1919 demand.
This 1919 increase will only pro
vide funds to pay the increase in
the company's taxes and does not
take into consideration the increase
in wages nor in the cost of material,
which represent better than 60 % in
crease over 1916 costs.
Officials Disa ppointed.
Officials of the Idaho Power Cons
pany do not attempt to conceal their
but say that they
will go on and do the best they can
under the circumstances.
The commission comedies that the
power company needs increases in
revenues to furnish the service de-
handed of it, saying that increases
in rates when necessary to enable a !
utility to keep it's service at the point
he public demands and to attract |!
any capital with which to make need !
I'd increases are justified.
Valuation Twelve Million.
The commission assumed 80 as a
rate of return on the in.
,estment altho expressing a doubt
whether money could be obtained for
power investment at so interest. On
he basis of twelve million dollar in /
-estment, which was the figure used
" the commission in the absence of
complete survey of the company's
as to valuation, the cem-
mission figures the company's de,
icit last year was $492,536.O0 and
stimates a deficit for 1920 of $780,
30. Because of this condition one
commission points out it will be
cry difficult for the company to Sc,
ure funds for expansion.
1--WE have had to make a point be-
Heen the growing demand for SER
ice by the public and meeting it,"
lys the commission, land the need
the power company for more
oney in the way of revenue to en-
Die it to obtain funds for plant and
stem increase" - &
State Development Policy.
The effect of this decision is far
aching, going vastly beyond the
ere question of rates for the parti-
lar company. 1t lays emphasis upon
e necessity of such utilities in state
svelepment and the impossibility
securing the full measure of bene-
therefrom unless such utilities are
ven reasonable rates, which, the
mmission holds, must represent the
lges, operating expenses, equip
snt and interest on the money at
fair valuation.
The decision is accepted here as
timing state policy in the treat
mt of both the public and the
Titles that will probably never be
turbed. This is summarized in the
statement.
'The public holds Service as the
st important consideration. 1t
hands and has right to expect
t there shall be available a sufff-
Mt quantity Of service for all who
ID it and that the quality shall be
best. Rates reflect service, as
vice cannot be furnished unless
costs are met. When costs change
tility must either have some way
meeting them through revenue
service suffers. 1t is no more
ctical to overload an investment
public service than it is to over,
k horse. The ultimate result is
same in both instances. The pub,
stands ready to pay for, but de-
DIS results"