The Alaska daily empire., 1922-09-12
1908 FRANCHISE
IS CONTRACT IN
COMP ANY'S VIEW
Holds it Cannot Be Impaired
by Subsequent Ordinance
Fixing Rates.

is no contract IN force governing
rates on electric current. the Alaska
Electric Light G. Power Company de-
clares that the franchise of 1908 is
a valid contract between the city
and the company. in a letter just re-
ceived by Mayor R. Z. Robertson.
In this communication the company
intimates it will not be represented
at the public hearing arranged by
the Council for tomorrow evening.
but goes into detail on certain sec
lions of the proposed rate fixing or
dinance which passed its first read
ing at the last meeting OF the
Council.
The company also asserts there is
a probability of it's being unable to
get electricity from the Gastineau
Company after its present contract
expires for the reason 1t Is expected
the latter company will require its
power for the operation of a paper
mill In this case the light company
will be forced to expend several hun
dred thousand dollars to maintain
the present service in this com
munity.
Appreciates Stand of Council
In the company's latest communi-
cation, General Manager w. s. Pullen
said
1--WE desire to state that we con
tend that the franchise granted the
Alaska Electric Light & Power Com
pany by the city in 1908 is con
tract between the city and the COM
pany which cannot be impaired by
subsequent legislation nor by a sub
sequent ordinance, and for this rea-
son. we do not believe that anything
can be gained by any further de-
tailed discussion in public meeting
regarding rates However, at the
same time we wish you to under
stand that we fully appreciate the
efforts of the City Council and do
not at all blame it for an effort to
get the best possible rates for cleo
trio current and power for the people
or the municipality; and want TO
assure you that we are willing at al
times to entertain reasonable sug-
gestions regarding rates.
Consider Rates Fair
"As we have already pointed Out
to the Council. we consider the in
creased rates put into effect on An
gust /, absolutely fair and reasonable
to the city and to the consumers Of
electricity in juneau, and we do
not believe the company could afford
to establish the rates set forth In
your proposed ordinance. In this con.
nection we want to point out tha' a
comparison between the kilo~att
hours generated. purchased and sold
during the past five years, as men
toned in your letter, would mean
nothing for the reason that coAdi-
lions have been changing raLidly
during the past year, and there has
been steady decrease in the profit
able lighting load which could lot
be offset by a corresponding increase
in the cheap heating and power lo'c,
We wish to call your attention TO
the fact that during the summer
months the lighting load is small. and
in figuring the rates it is necessary
to figure the aggregate averaged
throughout the year"
Makes Certain Objections
Objections noted by the company
were as follows:
Elm Section Four Of the proposed
ordinance, an increase Of three-quar'
ters OF cent per kilowatt hour is
provided for the winter months. lis
rate would not cover the increase OF
the cost OF current to us; and In the
summer, in the matter OF heaters
the flat rate prevails regardless OF
the amount of current consumed.
Regarding Section Five Of the pro
posed ordinance, as already pointed
out to you. the company derives nt
profit from the operation of hot
water heaters. These are Necessary
in connection with cooking. and the
loss is absorbed by the cooking rate
"In Section Six, we respectful,
call your attention to the provl iior
made for electric heater service
without specifying the size or ca
pacity OF the heaters.
"In Section Seven. you would al
low the company upon motor service
in excess of 25 horsepower a rate
not to exceed 11a cents per kilowatt
hour, which is the actual cost to us
Of the current purchased from the
Castineau Mining Company and
would allow us absolutely nothing
for transmission losses or for
handling and distribution of current
or administrative expenses.
Referring to Section Eight. the
rate set forth would require the
company to operate the present
street lighting system at loss to it;
and we would be required to furnish
100 watt lamps at the same price as
60 watt lamps.
May Enlarge Plant
'In conclusion. we desire to state
again that during the past five years
the Alaska Electric Light & Power
Company has given the residents OF
Gastineau Channel and the consum
ers OF heat, light and power, the
best service in Alaska at the cheap
est rates; and that the company II
IT,