The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-23
PERMISSION TO ABANDON LIGHT PLANT
ECRANTED TO RESIDENTS OF CENTER
Business Men Had Organized
Project in 1925 to Make
Town More Attractive;
Only 2S Consumers Used
Facilities; Rail Boar d
~,
Grants Petition

Holding that it would be unfair to
owners Of the electric light plant at
Center to require them to continue
operating at loss. the state railroad
board has granted their petition for
permission to abandon the busines.
Evidence presented 20 the board,
the decision states, showed that five
Center business men Joined in organ
izing AN electric lighting utility with
the idea of lighting the town and its
homes and helping to make the place
more attractive. They had no hope
Of making a profit on their invest
ment and planned to operate the
plant at cost. That was in 1925.
Last June they asked permission
to quit. They had not taken in
enough money to pay their expenses,
they alleged, and an additional out
lay Of capital was necessary to re-
pair the plant to keep it in opera
tion.. Accounting experts for the
commission found that their plea that
they were losing money was 'ust'-
fled.
Proposal Objected to
Several Center residents objected
to the proposal to shut down the
plant, contending that they had
W1rCO LUelT uVUSCS NI0 DVWku~ SASN
trical appliances and did not want to
be len in darkness. There were %
consumers.
Although the rate at Center was
very high the commission held that
a rate increase would not substan-
TALLY help matters and gave its Opin-
ion that the only solution Is for each
consumer to become stockholders In
the company and to establish rates
\ which will provide for operating ex-
penses. depreciation and proper main.
tenance.
Commenting on the situation al
Center as one typical OF numerous
other small towns in the state the
commission said:
Problem Is Aggravating
"The problem of providing electric
service for small isolated communi-
ties has been an aggravattng one and
q source Of worry not only to opera
tors of these utilities but also to this
Commission. :
awe have found it difficult to es.
tablish rates which would provide for
operating expenses, depreciation and
n small return upon the investment
and still be. within the reach. OF the
consumer. The constructi0hss OF elec-
trjct transmission lines on 2 large
scale throughout the state during the
nast few years has materially i'm
proved the situation but in the case
under consideration we find that un-
der existing conditions it is inprac.
ticable to require the construction Of
an electric transmission line for the
reason that the initial investment
would be approximately 81. 900 and
ihe revenue to be derived from the
sale Of current in Center would not
| justify jts construction and opera
| tion. II Il probable that il the rate
vas Increased from 26c per. XVII
| 10, SOC per XVIII. sufficient revenue
V6pld 81 derived to pay the actual
operating expepses. However, ap,,
ureximately n 100 must be invested
before the plant can be placed IN
operating eenditioh, and we do not
feel justified, up0h this record, to
ortIer this company, eomposed Of five
local business men. - iAvest addi-
tipnal capital In ! losing proposition,
ssThe quAltion of the right Of q
utility company to abandon 10 aerv-
ice appears tos be N unsettaed ono.
Il 10 certain. hpwsver. that this cons
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