Imperial Valley press., 1928-09-14
DISTRICT NOT TO
RENEW CONTRACT
WITH POWER CO.
Engineer Dowd Submits
Opinion Which Board
Supports.

Members of the board of direct
ors Of the Imperial Irrigation Dis
trict declined to execute a contract
with the Southern Sicrras Power
Company at special meeting held
Yesterday afternoon. The contract
called for the use of power at An
dradc for the next three years.
4 letter accompanying the con
tract from J. j. Deuel., manager OF
the Law and Utilities Department
If the California Farm Bureau
Federation. points out that the new
contract would result in an annual
reduction Of approximately $1,000.
The contract aud letter were sub
mittcd to the board by N. j. Dowd,
| chicf engineer Of the district, along
with another letter in which he gave
his own observations regarding the
! proposed contract.
| Iowd pointed out that in 1916
| the district entered into contract
with the power company to furnish
| electric power for use at Andrade,
| the contract appearing favorable at
\ mat llIilt DtNduot vi us h'' WI ~
! 'larg> suction drcdgcs there. STUDY
! indicated that the use Of electrical
power would be cheaper than steam
or gas power, under the terms Of
. the contract.
The contract was given for five
years with the district having the
/ option Of renewal for Il like period
at its expiration.
Then. Eowd declares, the power
company increased the rate with the
! sanction OF the railroad commission
in 1918, the increase being 10
per cent raise. Again in February
1920, the rate was raised, this time
amounting to approximately 80 per
cent on the first 100000 kilowatt
hours.
These increases were made, Dowd
explains, notwithstanding the good
faith in which the district entered
the contract. He points out that the
power company was right in seek
ing a long term contract because of
its expenditure in supplying power at
Andrade. The district on the other
hand had every reason to believe, il
entering the contract that the rat,
fixed by the contract would b.
available for the ten year period.
DoWd points out that there is nC
such condition existing at the pres
cnt time, meaning the necessity OF
assuring the power company fur
thcr contract Of three years.
Made Voluntary Reduction
The chief engineer declares that
at the time the district began tn,
investigation of the Feasibility OF
generating its own electric power
through its canal system, the rail
road commission was holding hear
/ ings on application Of the power
company for Il further increase. Co
incident with the report of the dis
trict on its findings this application
was abandoned by the power com
pany and the commission took W
the application Of the power users
for a decrease in rates, which ap
plication is now pending.
DoWd declares that he has infor.
nation which indicates that it will
be at least two years before Il de
cision is reached in this matter. He
declares that it will not only be
two years before the decision is
reached but win undoubtedly end in
decision in favor of the power
company.
Despite these facts, it is pointed
out, the power company has volun
tarily decreased its rates, effective
September 9. Dowd declares that
the signing of long contracts with
the power company by heavy users
Of electric power will somewhat dis
rupt the plan of the district to go
ahead with its own power plans.
The district 5 project is now be-
tore the Bond Certification Com
mission and it is expected that a
decision will be returned soon. The
application calls for a reduction of
approximately 30 per cent in present
/ power rates