The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1922-12-28
UTILITIES COMMISSION
TRIMS THE POWER TRUST

UTILITIES COMMISSION Z
TRIMS THE POWER TRUST
The utilities commission Of Idaho
has just rendered decision OF far
reaching Importance affecting the
prices to be charged for electric SER
vice by the Idaho Power company.
The net effect of this decision will
be that rates for all electrical SER
vice will be kept down rather than
raised, the schedule of prices being
based on the amount invested and q
reasonable return" allowed on
such Investment under direction Of
the commission. They will meet on
January 20 to make the schedule of
prices to go into effect based on this
decision.
Long Investigation
The question of prices has been
pending since 1919 when the COM
pany asked for revision upward
and the commission said it would be
advisable to determine the amount
Of capital invested and the amount
actually invested to a useful purpose
in creating and maintaining the
service. 1t was claimed that there
was "watered stock" as expressed
in the purchase of competitive
plants and property at wasteful
prices, and goods listed in the in
ventory that should not be, and that
returns would be allowed only on
useful investments.
Following this, the inventory
Complete list) was taken of all the
company's property and it has taken
three years to do that and get the
analysis and findings ready. In the
discussion of just what should go
into the inventory, different theories
we're advanced, and it was decided
that the company should total every
thing they had put into the business,
not including the worn out or obso-
lete materials, but with deprecia-
tions that would show their true
value, the purchase price Of plants
and lands, the actual cost of i'm
provements ETC., and make another
list of the true value Of the parts of
the investments that are actually
useful In furnishing the present SER
vice, not including idle plants and
property Of every kind.
High and Low Valuation
The company turned in two in
ventories, one for about twenty-five
million dollars and another for
about thirteen million. The utilities
commission sent out engineers to
check up on sections Of 1t and found
they were correct and reliable in
every way, but they made deduc-
lions that cut down the amount they
were willing to allow returns on, so
hat the working total is 1885,
a5O.60.
Following are some of the deduc-
ions made on which the commission
s unwilling to allow the company
my returns:
Commissions paid to brokers for
negotiating loans or for selling
,onds to get capital for carrying on
he improvements and enlargements.
rhe commission says that If they did
lot have the money and had to 60
'ut and spend money to secure
apital, that Is the company's loss.
hey are willing to allow returns on
uch costs as would be paid by q
nan or firm that had the money to
make the needed purchases and
AIRY on the work. That cuts out
early million dollars.
In acquiring power sites they
ought acreage that Is not necessary
o the operation of the plant, and It
les there yielding nothing as does
farmers waste lands that yield
othing. II he wants to keep 1t and
ay taxes on it. very we'll. but the
overnment does not guarantee him
profit on such Investment.
In buying power plants which
hey afterwards remodeled, they had
Id buildings on their hands doing
o particular service, and the COM
lission will not allow any returns
n them, however small. It tries to
eep the company on a par with the
armer who has useless improve
tents on his place or the city
weller who has coal house or
'ood house that is no longer used.
he wants to leave it there and pay
lxes on it, he may, but the state
oes not guarantee him a profit or
ny returns on what it cost him.
hat is his contribution to the
hanging conditions and progress of
le times
In buying out some of their COM
etitors the commission finds that
ley may have paid too much; that
ley paid more than the property
as actually worth and more than it
worth now since the remodeling
; rebuilding was done, and it
axes deductions accordingly, not
lowing any profit on money in
'sted merely to get control or to
It a monopoly or even for the pur-
'se Of increasing the efficiency of
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