Imperial Valley press., 1922-10-04
The Water ard P0tUer Act
An Analysts
Blu CHARLES L. CHlLDERS

upon coal as q source VT energy. The
fuel oil will eventually become exhaust
ed, or become prohioitiya in price The
Pacific coast, however, is favored with
abundance of water power waiting de
yelopment. This water power will be
developed II will either be detclofed
by the state for the people or it Will be
developed by private corporations The
industries of the state will proN .hylt
or stagnate iustsi in proportion TO this
development, and the rate 1T which
this energy is supplied TO the consumer.
ii is purely a question for the people
70 decide, whether they want this basic
utility to he handled by priva,e inter
ests for private gain, or Whcthcr they
want the state to handle it without
private gan TO auyhoay but the bene-
fit of all the people. The state can
handle it successfully What other
peoples have done we can do, ai,d what
has been done u municipalities within
the state can be done by The state as
a municipality, then it is purely
question Of rates. Can tine state fiji
nish this energy at lower rate than
it is now furnished by the private cor
puradons3
Helps Los Angeles buslheaS
Los Angeles City has not been in the
business long enough to be fair con
,s.r,son OF what might happen under
municipal ownership. However, II u
noticeable that since 1917, when Las
Angeles began to serse Its own hydro
electric power the city has grown with
leaps and bounds, both in population
and in industry During the fiscal year
ending June 80, 1921, the Los Angeles
rate PAYERS saved mere than nine NIL
lion dollars compared with the rates
charged by private power companies
throughout the state. During that same
year the city s taxes amounted to less
than ten million dollars. In other
words. the city saved to its ratepayers
practically 'he fall amount of its taxes.
The city S municipal power plants have
not cost the taxpayers a cent ;.nd sui
ficient amount of monty is on hand Ia
take care Of al interest charges ai"l
bond retirement. Last year when tAs
city took over the distributing Lines ~
the Southern California Edison Com,
panv il made a further reduction ln
rates which will be n saving to the raj
payers of more than 100000 year.
Horace Porter Of Riverside, has stat
ed that 10 years ago the manufactured
output of the City of Los Angeles Wa'
approximately $l3,0U0,000; last year II
was over 5000, 100000. DodbtlCss dpund-
.nce of cheap power was one a. tAe
controlling factors in this phenonlinal
growth.
Low Toronto Rate
The rates charged in tbc CITY OF
Toronto operating Gndcr the hydro
electric power commission OF ontario
last wear were % cents per kIlowat
hour both for domestic and commercial
use. Most Of this energy is generated
at Niagara Fails. approximately 100
miles away and perhaps cheaper 10 souo
extent than can be furnished to centers
of population in California.
The City of Cleveland generates
practically all Of its energy by the use
Of coal, but even with the scarcity mt
high price of that fuel the city main
tained cents rate during the year
1920 and without expense to the taA
PAYERS. What the Province of Ontario
has done, what the City of Toronto
has done, what the City Of Cleveland
has done, what the City Of Los Angclel
has done, the state of California surely
can do. IL the City of Los Angelo
has saved TO its rate payers $9,0o0,0Vo
in one year, it has encouraged industry
Just as much rs if it had "a snbsidy of
$4,000 900. IL that has been any great
factor in the marvellous growth OF Los
Angeles, what viii it moan 20 Ca'lfor
MIA TO have the same rules applied
throughout Tie state.
When the power companies tell yoa
| that they are permitted TO earn Only
| Approximately 5 per cent on their ~
! vestmcnt, it must ge borne ii mind
| that their Investment is not rcckoncd
on the amount Of money put into tho
Fonterprise, but il Is on what is termed
! a replacement valuei' In other words,
! they are allowed TO earn approximate ~
s per cent on the value Of their prop
| etty necessarily used-m other words,
| property that cost a few hundred or
Il few thousand dollars 10 years ago
may with tho remarkable growth OF
| California today be WORTH two or three
times that amount and that i the value
upon which rates arc fixed, Neither
il II the fault of tho railroad commits
| sion. II Is HecteAdfN W iiA ldlNn ~
that manner to attract capital 10 the
particular utility. Il would appear that
capital Is successfully attracted from
the effort the power companies are pnt
| ting into the defeat Of this legislation
and the preservation Of the presenl sys-
tenn. The City Of Los Angeles does,
and the state viii, fix rates on the
actual cost Of the property, regardless
of its value. That Is why the City OF
Los Angeles can save S0,0O0,000 to its
rate payers, and that is why the City
Of Cleveland can furnish energy, using
coal for fuel, at 5 cents pei kilowat
hour.
i There is still another very grcat fac
TOR to take into consideration concern
ing this bill. The power companic. pu,
in transmission lines and furnish ser-
vice when the demand has been created.
La other words, a community must de
velop Of it's oWn strength 70 the plac
where ii will oc profitable fCr h'
power companies 70 furnish il servit,
before service sill be installed. ,Undei
the state plan, the state will ipstal
| gprttian ~ n pnNOtfnfty fhuf sunUIf