Southwest Washington labor press. [volume] (Hoquiam, Wash.) 19??-19??, 1923-11-30
s2.024OOO

LAnbeEcoI-S ycaho a. VIC -------- NAAs"N1
,O24, 900
1. The item of $4,000 previously
included for Roads and Clearing is
Terminated because the logging Of the
timber will take care of those items.
2. The item Of 100000 for pipe
lines has been excluded because the
pipe line has been eliminated and the
power house placed at the dam
3. The full development Of the site
will yield $4,000 h. D. at load factor
of 44eo. The first step should be as
outlined above with dam to Eleva-
ton 700. The full development of
the dam 40 It. higher and additional
machine capacity can be added later,
as the power demands merit the ex-
tensions. These extensions will be
made from net earnings and no furth-
er bond issues will be necessary. More
over the present bond issue will be re-
tired in 20 years, after which the net
earnings wild be Increased or the
rates lowered.
Tacoma's Nisqually plant-32, 900 h.
p.-built in 1911, yielded net return
in 1919 OF $4,000 dollars on 10000, 900
XVIII. The load is ever increasing
and in 1922 the net earnings were
1895, 900 on $4,000, 900 XVIII. Besides
paying redemption on the bonds the
light department also paid into the
general fund a sum of over $50, 900 in
lieu Of taxes. Actually reduced the
taxes by that amount, and also sup
piled power and light to the city of
Tacoma at the lowest rate in the Uni
ted States. }
Tacoma is pleased with her munich
pal power, and with good reason She
is going further, and to insure a per-
manent and adequate supply is devel-
oping the Cushman power project, 50,-
900 h. p In the first development at a
cost Of $4,000, 900, and an ultimate In
stallaGion Of lao, 900 at total cost of
about $4,000, 900, a large share OF
which will come from net earnings.
I It is not likely that Tacoma will have
power to sell to Grays Harbor. Her
load curve indicates that she viii do
well to care for her own needs, and
that in a few years even the total
Cushman supply will be inadequate.
4. The storage basin is largely
bottom lands with a scattering OF
heavy timber. This may total 75,-
100000 f-bm. with a stmpage value
of 1925, 900. This should pay as good
n v,y.oPit ~ IoercaI ~. 4I,a Hroxx. TIo,1,,.,
mills as elsewhere, and the cost of the
timber will be agin available as the
logs are marketed"
Cost Known.
These two estimates OF cost wer1
known at the time that the bond issue
was prepared. If we had not known
at that time that the plant could be
constructed for two million dollars, but
that It would have required three mill
ion dollars, the bond ordinance would
have been for three million dollars In
stead of two million dollars.
Even at three million dollars the cost
Of the project per horsepower would
not be much greater than the first
fifty horsepower on the Cushman pro-
ject and much lower than the first
unit development on the Skagit
project.
l, therefore, concluded, in that state
ment that, If a plant costing two mill
ion dollars, without anw further bond
issue, would eventually develop $4,000
h. D., instead OF 81 900 h. p, the addi-
tional cost, coming out Of the earn
ings Of the plat, that was entitled
to claim that the ultimate cost per
horsepower, based on initial invest
ment of two million dollars, would be
approximately $500 instead of $500
Jas it is figured the first $1,000 h. D.
unit will cost.
This conclusion was also based on
the report of Mr.. Torpen, on the Mis-
nually plant, at Tacoma, which on ac-
count of the insufficient storage ca
pacity developed only a maximum
horsepower of $4,000 and a minimum
horsepower OF as low as 5000 during
certain seasons Of the year.