The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1930-07-11
MONTANA DAKOTA
INTENDS TO STAY
in PLENTYWOOD
Has No Intention of Relinquishing
Franchise, Says w. L. Hayes,
Power Company Official.

The following statement was is
sued by w. L. Hayes of the Mon
tana-Dakota Power company in
reference to Mayor Storkan's plan
to set up a municipal light plant:
"The Montana-Dakota Power
Company has no intention of re-
linquishing its right to serve Plen-
tywood with electric service. We
doubt if the clause in the fran
ch;se referred to by the Mayor
gives the city the right to buy the
distributing system.g But in any
event the city has no right to buy
our franchise in Plentywocd, so
that if the city would buy our dis
tributing system we would build a
new distribution system and con-
tinue to serve Plentywood under
our franchise, SO that the best the
city could accomplish would be to
have a municipal plant in compe-
tition with the Montana-Dakota
Power Company. Such competi-
tive situation would undoubtedly
result in temporary Low rates in
Plentywood with the inevitable re-
suit that the city would lose money
in the operation of their municipal
plant and eventually go back on
hi-line service.
Exceeded Debt Limit
Because of the fact that The
city has already exceeded its lega'
debt limit, we can see no way il
which the city can purchase oil
engine equipment, build a power
, plant, and buy or build a distribu
ton system. We are certain tha
y an isolated municipal plant il
Plentywood could not render ser
D vice at rates as low as the pres
ent rates.
eve think it would be seriou
U mistake for the townspeople o
Plentywood to burden themselve
U with large debt to pay for
= municipal plant in competitio
v with the over Company. TIL
- only result that could posslbI
" take place would be to go back o
:, hi-line service and pay off tn
" large debt out of increased take
" Pay Substantial Sum
" "The city could not expect |
~ buy the Power Company's preser
> distribution system by paying onl
. the price set by an Arbitratio
70 BOARD as the present value of tn
- distribution system. The cit
% would have to pay a substanti;
e severance charge to reimburse I'll
" Power Company for their inves
- ment in the transmission line bui
" to serve Plentywood.
W "The Montana-Dakota Powe
- Company built the transmissio
~ line from Bainville to Scobey Or
70 marily to serve Plentywood an
~ Scobey. They also provided gen
~ Grating capacity in their powC
plant to serve this business.
- the city expected to buy the Pow
W er Company's distribution syster
they would have to pay the Powt
Company for the investment mao
10 to serve Plentywood, which is rel
Is resented by the hi-line and pow'
" plants, as well as the distribute
system.
g Claim Rates Reduced
Ae "The Montana Dakota Pow,
u Company purchased the isolate
W plant at Plentywood five yea
ago in good faith and has invest,
e. several hundred thousand dolla
nc in transmission lines and pow
plants to render adequate servi
&c to Plentywood at reasonable rate
81 The rates in Plentywood ha-
w. been reduced each year since q
= hi-line was completed so that &
", people of Plentywood arc enjoyil
III rates that are more than for
per cent lower than when the .ov
z, was served by a local isolat
mt plant. We feel tina. the people
OF Plentywood are being served
7; the present time much mo
us cheaply than they could expect
'ne be served by a municipality own
ne isolated plant"