Imperial Valley press., 1929-07-10
.DOWD ANSWERS
QUESTIONS OF
STATE ENGINEER
Continued From Page !

conclusion 4, states: "There is at
the present time rate case before
| the California Railroad Commission
involving the electric rates of the
! Southern Sierras Power Company in
! imperial Valley, and other portions
! of the territory served by it. An
exhibit (No. so in this case, pre-
| pared by the engineers of the com
mission, shows that the rates in In.
| perial Valley if cut 32.4 per cent
! (as charged in 1920 would still
| yield the company "a fair return.
How would a 32.4 per cent redue-
tion from 1927 rates in Imperial Val
! ley affect the income from the dis
triet s proposed power development
While it might be possible for
the power company to cut its rates
in the valley 32.4 per cent and still
earn eight per cent, if the railroad
! commission insisted ON the same
basis in all parts of the Southern
Sierras system where the rate of re.
turn is now more than eight per
| cent. the total earnings over the
' -
! cent. This is because in other sec,
tions, the company must meet compe'
| tition. San Bernardino area returns
are only 6.l8 per cent compared to
1908 per cent in Imperial Valley.
If the rate could be cut 324 per
cent III 1927 and still permit the
company to earn eight per cent,
! IX
the valley only received - per
cent reduction! Exhibit 50 covers
a period when the company was ask
ing for an increase. If the district
were not going to develop its power,
what assurance have the people OF
Imperial Valley that the appiiea-
tion for increased rates will not be
renewed and granted.
The 80 per cent reduction pro-
I posed by the district was only a
| preliminary figure. further redue-
tions being intended when condi-
tions warranted. The use of DieseI
engines instead of steam. as original
" planned bv the district, will re-
suit in considerable operative say
ing.
4. Has the district made any
effort to dispose, or received any
encouragement that it may dispose
by wholesale, of the hydroelectric
energy TO be developed under the
present plans and future plans OF
the district.
The district has received eneour,
cement that il viii be able to dis
pose OF ali surplus power. As to
that amount which VIII be used
locally, no effort has been made to
dispose of it wholesale, tine district
contemplating no other plan than
of distributing all power which VIII
! be required locally. Boulder dam
| and coast power viii control the
price of surplus power, independent
of Imperial Valley, so that by dis
tributing and not wholesaling the
interests of the people Will be best
+, served.
;. Possibilities Of construction
! of all-American canal from Laguna
dam to lockwood heading in the
near future and estimated cost l.
the district. (a) Estimated cost to
! the district of power developmen
at Pilot Knob. (b) Amount OF
power which district may obtain At
| Pilot Knob for commercial sale
(c) Is all power in excess of
amount district and Yuma project
uses in their own operations subject
to sale by the secretary Of interior
to the highest bidder, or has the
Imperial Irrigation District a pre-
ferred right to this surplus!
There is no authority under tbs
Boulder Canyon Project Act fol
construction of the all-American
canal in part, the act providing that
II any part of the canal is to be
constructed it must all be con
structed. Nor does the act authorize
the government to construct power
plants on the canal, but specific
authority to make such development
is given to the district. The power
10 be developed at Pilot Knob wll
simply be a portion of that De
veloped on the entire canal. 1t can
be designed 50 as to fit in and sun
plement that developed on the bal
ance Of the canal. Construction Of
the so-callcd " first leg viii he
carried out in conjunction with
construction of the entire canal but
cost figures are not now available.
Pilot Knob power development will
cost approximately $2,00O,O00. Tie
district expects to obtain all the
power at Pilot Knob which will be
merged with that produced at other
| plants on the canal.
| 6. Cost of all-American canal
below lockwood heading; extent of
power developed and cost Of same
TO district. Has district n right to
the direct disposal of this power
! for commercial use or will it he
necessary to compete with public
/ utilities or other organizations in
! the purchase of the same for com
mercial disposal9
Definite canal costs are not avail
able pending completion of final
surveys but including diversion darl
and excluding power plants, ap-
proximately $23 900.
7. In general, how viii the dis
trict's present plans fit in with tho
future development Of the all
American canal?
3. VIII not the development of
power on the all-American canal be
more than sufficient to supply con
tiguous territory for a long period
Of vaarg and can n not he oht aincd