The Bingham County news. [volume] (Blackfoot, Idaho) 1918-1930, 1923-08-24

accessories may cost several times j
1 much as a steam plant of equal CO
pacity, and in addition may requir
an expensive transmission line, sur
stations and steam reserve. Studio
made by the California Railroad Com
mission in a rate case before tina
body are Illuminating as indicated tn
variation in cost of energy from tn
hydro electric plant to the retail con
sumner. The figures are actual aver
| age costs to one of the large Califor
| mia electric utilities, such costs in
| Guiding operating expenses, deprecia
ton and return on investment 70
each part of the system considered
The average energy cost, per kilowat
hour. To guarantee continuous ser
vice and to furnish part Of the energy
supply in periods of low water, 1t Is
necessary 70 add operation, deprecia
ton and interest on steam reserve
plants, thus increasing the cost to
6.2S mills. Transmission costs and
losses. taxes and general expenses
bring the average cost of power al
the substation up to 1 cent per kill
Iowatt hour. The distribution costs
from the substation to the agricultu-
raj or industrial consumer having an
installation of about twenty horse
power practically double the cost,
making his charge cent per kilowatt
hour. When we consider the domes-
tic lighting consumed, however, we
find that his cost is primarialy In the
local distribution; that Is, In interest,
depreciation and maintenance on the
distribution system and meters, In the
expenses Of handling consumers ac-
counts, and in taxes and other gen.
eral expense items chargeable to this
class of service. The California stud
| les show that while the cost at gen.
orator switchboard Is only 4.25 mills,
at the substation only 1 cent and
when delivered to the general power
consumer slightly less than 2 cents,
the cost of delivery to the ordinary
residence consumer is IA cents; and
that Of this aggregate cost less than
Is per cent is chargeable to hydro
generation, while SS per cent occurs
between the substation and the con-
sumer's fixtures. This situation can
not be too often emphasized; for
facts from a wholly disinterested
source will convince the average con-
sumner Of electric energy that the wide
difference between costs at the gen.
orator switchboard and the price
which he pays, represents anything
but profits to the utility, and extor-
tionate profits at that.
Lack of knowledge Of the relation
between operating costs per kilowatt
hour at generator switchboard and
the total of such costs up to the point
of delivery Of energy to the con-
small a proportion Of energy sales
are made at the household lighting
rate; are largely responsible for the
further popular fallacy that hydro
electric service, even under strict
state regulation, is so profitable that
it can safely be subjected to restric- |
lions and liabilities not imposed on |
any ohter business. We accordingly |
see proposals advanced for special |
and excessive taxation on waterpower
for grants or franchises
Of too short duration to justify the
which large-scale power
development requires, and for rever-
sion Of properties to the state without
at the termination OF
the grant. What effect legislation
along such lines is abundantly prov
en- by the almost complete cessation
If waterpower development under the
restrictive and uncertain provisions
If the Federal laws which preceded
he present waterpower act. Even
when such provisions do not halt de-
7elopment altogether they increase its
cost, and such increase must be re-
1ected in less satisfactory servile or ;
n higher rates than need otherwise :
prevail The imposition Of excessive .
axation upon power development !
loes nothing else, Of course, than TO
hift by so much the burden Of state .
Import from the people as whole =
O that particular group who use the
ower so taxed. h
Proceeding from the same misin- Il
ormation about actual costs of SER h
ice, misled by the same views with
aspect to Unreasonable profits, ana n
onsequently doubling the efficiency II
public regulation Of utility rates 81
nd services, not inconsiderable r,
umber Of people have reached the h.
onclusion that the only medium rs
trough which service at reasonable h,
ost can be secured is public owner W
nip. am not a partisan Of private fl
or of public ownership as b]
lch. 1t may be well that, irrespec- VI
We of results, these two systems m
lould be tried out side by side until AZ
leir comparative merits can be es- W
blished to general public satisfac-
on; but if SO, their merits should be VI
stermined on a really comparative OF
isis, with public ownership measur- ca
by precisely the same standards A
are applied to private ownership. | nc