The Alaska daily empire., 1922-08-03
COUNCIL HEARS STATEMENT FROM MANAGER PULLEN
Reasonableness of New Elec- tricity Rates Unsettled
 To Decide Friday.


 nished by General Manager W $ Pullen of the Alaska Electric Lighl & Power Company relative to me proposed increase on current rates and questioning MT. Pullen on data contained in the statement, the Cliy Council last night adjourned without taking any definite action on the new rates. At the suggestion of Mayor R E Robertson the Council took the matter under consideration until it's regular meeting next Fri day evening, when definite action IS expected
 On only one question put to NIT. Pullen were the members of the Council apparently unable to get a complete understanding from the responses given. This query, put at different times by Mayor Robert son and various councilmen, was why it was necessary to increase rates on electric current for the entire year I cent and upward per kilowatt hour when the raise to the company by the Alaska Gastineau Mining Com | pany was but three-quarters Of one cent for the period from November 1 to May 1. To this MT. Pullen said that the company figured, passing it's estimates on the sales Of current last year, that under the proposed rates it's revenues would be increased by approximately $8,000 for the year, ] all of which would go to the Alaska l Gastineau The local company's net return for the year, he maintained, ! would not be increased over that for last year.
 Defines Fair Return
 In response to a question by Mayor | Robertson, MT. Pulen said that he ! believed 8 per cent would be fair | return, but that the company's aver age net profit for the past five years | had been per cent He said that i the approximate value of the com | panys investment here is s2500O0 | and that 1t set aside 5000 each | year in a shrinkage fund
 He said that the company had con s.dered raising the rates for the pc riod between November and May to 71a cents for lighting purposes and 3 cents for heat and allowing the present rates to remian unchanged for the summer months. Such system of rates, he explained. would have produced a slightly larger reye- nue, but the company believed that an equalized rate for the entire year would be more satisfactory not only for itself, but for its patrons. The average gross profits. without oper- ating expenses, realized by the com pany for the past five years. he said was approximately one and one half cents per kilowatt hour.
 Says Books Were Open
 When various councilmen insisted that they were still unable to under stand the blanket raise for the en- tire year and the difference between the raise to local consumers and that paid by the company for the electric current it purchases. Mr. Pullen declared that he had invited the Council to go over the books Of the company and get tho facts for themselves or verify his statement and that it had declined 10 do so. 'I have done everything l can to explain the situation and am through" he said
 Tolch Explains Contract
 General Manager w. T. Tolch, of the Alaska Gastineau Mining Com pany, gave the company's reasons for raising it's rate to the distribution company. The cost to the A. c. Com pany for producing electricity be tween July l, 1921. and June 90, 1922, was PIT cents per klOwatt hour for which 1t received under the old contract with the Alaska Electric Light & Power Company slightly less than three-quartcrs of a cent per kilowatt hour. Under the new con tract his company. he said. will only | get two-thirds of the actual cost O. production. The company last year sold to the local company a total of 34S,180 kilowatt hours of current. 95 per cent Of which. as shown by MT. Pullen's statement. was at the three-quarters cent rate Under the [ HtW tOHtTdCi the FDHt ID me lDcdl company. he added. would be slight ly under one and one-half cents.
 Declines Answer Question
 MT. Tolch was asked lt he con. sidered the proposed rates. in view of the new contract, 70 be equitable He replied that he did not feel justi- fled in answering the question as he was not a resident of Juneau and was not concerned in the matter: that his interest ceased when he had made known the position of his | company. But if you were a citi zen of Juneau what would you say?" asked Councilman Connors. "Whv | not ask me what I would say if were a consumer" he replied Later MT. Tolch was asked if he could suggest any method by which the Council could determine whether or not the rates proposed are fair ar not. He responded. "ask Mir. Pullenw
 Small Crowd Present
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