Idaho County free press. [volume] (Grangeville, Idaho Territory) 1886-current, 1922-06-29
NOW GET OVER
B PERCENT ON
PLANT VALUE
Utilities Board Also Allows
Grangeville Power Company
21a Percent Depreciation
Pare Down Worth of Works on
Clearwater River S115, 304;
Old Charges Are to Remain

Grangevlle Electric Light Power
Co., in 1921, received more revenue
from consumers of electric current than
the amount to which it was justly en-
titled, according to a decision by the
Idaho state public utilities commission,
in Boise, Saturday, denying the com
pany's application for an increase in
20 percent over rates now charged.
The rates remain unchanged.
The light company, which generates
current at power plant on the South
Fork of the Clearwater river, serves
Grangeville, Fem, Cottonwood, Ferdi-
nand, CraigmonS, Kamiah, Nezperce,
Orofino, Greer and Reubens The
company applied almost year ago
for permission to increase its rates.
The public utilities commission held a
hearing on the application IN Grange
vile on January 10 and 20. The de-
cision handed down Saturday was the
result of the hearing.
LOCAL MEN OPPOSE
+. E. Busselle, an expert, of Salem,
Ore, and San Francisco, conducted
the company's case, while the interests
Of the municipalities were upheld by
Attys w. L. Campbell and r. F. Full
ton. of Grangeville, and G. H. Nugent,
of Craigmont. The decision of the pub
lic utilities commission is signal vic
tory for the attorneys representing the
public.
The public utilities commission re-
duced by $125,000 valuation of the
company's property, and fixed the val
uation at 1852, S33.24, as of Dec. 81,
1921. The commission fixed valuation
on which the company may base IT'S
rates at $3.50, 1924, this amount be-
ing the $462,s33.24 plus $17,500 allow
ed by the commission for working cap
ital.
The commission found that the
company was entitled to an annual
revenue which would pay all operat-
ing expenses, including federal in
come tax. provide for PA percent de-
probation on depreciable property,
and give the company an s percent
return on its investment.
CUT VALUE OF DAM
The largest cut made by the com
mission was in the original cost of
construction of the Clearwater dam.
The company placed value of $177,-
390.85 on these works, and the com
mission cut $115,304.05 from this
amount. Other cuts amounted to ap-
proximately $4,000, and were deduc-
tions from the company's inventory
for materials and supplies.
Discussing the $4,000 cut from
the cost of the dam, the order of the
commi ssion says:
fThis makes a cost for the dam
alone of more than $3.50 per X. v. A.
of the rated capacity of the genera
TORS now installed, or more than $3.50
X. V. A. of rated capacity for the en-
tire power plant investment, which is
out Of all proportions to the benefits
derived.
"This dam was constructed during
wartime prices, in the best possible
manner, and no question exists as 20
the character or cost of the structure.
"This commission cannot presume
TO take over the management of the
applicants property, nor dictate TO
the applicant as to the method of con
struction or amount of expenditures,
but neither can it permit the appli-
can't to earn return on an injudi-
cious or unreasonable investment.
TAKE CHANCES ON FUTURE
"The applicant may, through VI
sion of future development of terri
tory and business to be attached, or
for some other reason, have felt fully
justified in building for the future,
but if so. it must be satisfied to await
such development and additional bus'-
ness for return on investment over
that reasonably necessary and re.
ouired to provide for the demands OF
the present and the immediate near
future
The Grangeville Electric Light q
Power Co., is one of the first in
the state to have its valuation fixed by
the commission in accordance with
law passed bv the 1919 session of the
and some precedents are
fixed in Saturdays order which the
may apply to future vaiu-
alton decisions Some OF these are;
An allowance in the valuation Is
made for organization purposes of the
company. Tn the case of the Grange
Vile company this amount was s5oo.
Interest during construction is fixed
M percent Of the value of the .phv-
steal property. water rights, franchises
and organization expenses
The commission made no allowance
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