Cottonwood chronicle. [volume] (Cottonwood, Idaho) 1917-current, 1922-06-30
new SCHEDULE
IS DENIED
CRANGEVILLE +. l.. & +. co.
MUST SERVE THE PUB
Lie AT OLD RATES.

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Light and Power Co, who a yeal
ago filed with the Idaho public
utilities commission at Boise al
application to put in effect ;
schedule of rates, which if grant.
ed would have increased the cost
of their service materially at al
points served by them, was deni-
cd their application by the utility
commission, as being too high.
At the time the company con-
templated raising their rates
every town served by them filed
a remonstrance with the COM
mission, which it is said, had its
weight.
In the same order the valua-
ton of the Grengeville Electric
Light and Power company was
reduced by $125,QO0 when that
board fixed the value of the com.
pany's property at $462, 1888 "a.
This is decided as of Dec. 81,
1921.
At the same time says the
Boise Statesman the commission
fixed the valuation on which the
company may base its rates at
$3.50, ,333.24, this amount being
the $462 1924 plus $17,500 al
lowed by the commission for
working capital.
The commission found that
the company was entitled to an
annual revenue which would pay
all operating expenses. including
federal income tax, provide for
9 1-2 percent depreciation on
depreciable property and give
the company an 8 percent return
on its investment.
The largest cut made by the
commission was in the original
cost of construction of the Clear
water dam. The company placed
q value of SIT, 7,390.85 on these
works, and the commission cut
$115,304.05 from this amount.
Other cuts amounted to aproxi-
mately $14, 900 and were deduc-
tions from the company's inven-
tory for materials and supplies.
Discussing the $115,000 cut
from the cost OF the dam, the
order of the commission says:
This makes a cost for the
dam alone of more than $3.50 per
X. V. A. of the rated capacity of
the generators now installed, or
more than $3.50 X. V. A. of rated
capacity for the entire power
plant investment, which is out of
all proportions to the benefit de.
rived.
This dam was constructed
during wartime prices, in the
best possible manner and no
question exists as to the char
acter or cost of the structure.
This. commission cannot pre-
sumo to take over the manage
ment of the applicants property,
nor dictate to the applicant as to
the method of construction or
amount of expenditures, but
neither can it permit the appli-
cant TO earn a return on an inju-
dicious or unreasonable invest
ment.
''The applicant may, through a
vision of future development of
territory and business to be at
tached, or for some other reason,
have felt fully justified in build
ing for the future, but, if so, it
must be satisfied to await such
development and additional bus
mess for return on investment
over that reasonably necessary
and required to provide for the
demands Of the present and the
immedite near future"
The Grangeville Electric Light
& Power company is one of the
first in the state to have its val
uation fixed by the commission
in accordance with a law passed
by the 1919 session of the legis-
lature, and some precedents are
fixed in Saturdays order which
the commission may apply to
future valuation decisions. Some
of these are:
An allowance in the valuation
is made for organization pur-
poses of the company. In the
case of the Grangeville company
this amount was $500.
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