The Alaska daily empire., 1922-08-02
EXPLANATION OF PROPOSED RATES
 MADE BY PULLEN
Makes Public Statem en | Which Will Be Presented
 to Council Tonight.

In support of it's recently an i nounced increase in local rates or l electricity for all uses save power the Alaska Electric Light & Power Company tonight will hand a state ment to the City Council declaring that 95 per cent of the current il purchases from the Alaska Gastineau Mining Company will, under a con tract recently made between the two companies. cost 100 per cent more than at any time during the past five years. the cost of the remaining , per cent remaining unchanged. Il will also contend that the net re turns to the company will not in .anv way be increased by the pro posed new rates and that the Alaska Gastineau Mining Company will be the only financial beneficiary by the raise.
 The Council is scheduled to meet in special session at 8 D. m. today at he City Hall for the purpose of re- ceving the statement which was re- qucsted by it in order that it might determine whether the increased rates are justified.
 Sets Up New Contract
 w S Pullen, General Manager and Vice President of the company, com pleted the statement today, and fur nishcd a copy of it to The Empire. It said in part:
 
 Your letter dated July 31 was received by a special messenger yes terday, August 1. at II a. m, and in response to your inquiry regarding the reasons for the increase in the charges for electric current for light ing, cooking, etc. respectfully sub nit the following:
 This increase was necessary for the reason that our contract with the Alaska Gastineau Mining Company which has been supplying us with excess current, necessary to meet the public demand, expired on July 1, 1922. and we have been unable to renew the contract at the rate here tofore paid. Under the new contract which we have made with them 95 per cent of the current purchased by us has been increased in price 100 per cent, the remaining per cent still being supplied at the old rate. This calculation is based upon last years business.
 During Past Years
 During the past five years the residents of Juneau and Douglas have been purchasing their electric current for light. power cooking and heating purposes at bargain day rates. It has been the cheapest aver. age rate in Alaska and we know of no town on the Pacific Coast where these rates have been sequalled. talk ing into consideration the population and the size of the plant. etc.
 Although the r|es have been in creased our relative situation re- mains unchanged, for even with the increase, the residents of Juneau and Douglas still have cheaper current than can be found in any Alaska or Pacific Coast town.
 'The rates heretofore prevailing have been possible solely by reason of the fact that the Alaska Gastineau Mining Company has sold us current at rate varying from onerhalf to three-quarters cent per kilowatt hour based upon the seasons demand.
 Summer Months
 During the summer months our lighting load is practically nothing. During this period we depend upon T cheap flat heating rate, minimum lighting charges, and cooking. and cheap power to carry us through. As the public well knows, in the summer months we have plenty of water to supply our needs except peak loads. The remaining supply of current. to supply the public demands during the other months of the year is drawn from the Alaska Gastineau Mining Company.
 "ln increasing our rates We figure on the same net returns to the com pany as we made during the past year, dltuOuSH Lut ulISl SIX UlOuCHS Ol the present year showed a decrease in our gross receipts of $2,500 when compared with the corresponding pe- riod of last year The Gastineau Company will get the benefit of the increase in rates. So far as we are concerned. we are satisfied with a reasonable return on our investment, and we feel that the public will agree with us that the Gastineau Mining Company is entitled to the increase
 Winter Months
 During the winter months our water supply is practically nothing: and at the same time. during this period, our heating. lighting and cooking load is abnormal This is he period during which we buy all he power necessary to conduct our