Imperial Valley press., 1935-06-03

now be unuer CONSTRUCTION TWO
bridges across San Francisco Bay
Many thousands of people have in
vested in securities of the ferry COM
panies will virtually have to go out
of business, and those holding the
securities will suffer the loss, but
should the people of San Francisco
and the adjoining communities
across the bay be penalized for this
reason. OF course not. The two
bridges will provide much faster
transportation and at much less
cost than would be possible by r-A
ferries and SO the bridges are under
construction.
In the same way, there is no rea-
son why the people of Imperial VAL
ley should be penalized because of
the investments and policies of the
Southern Sierras Power company.
The people of this valley have for
many years paid and paid dearly for
those investments, and now that
they have an opportunity to help
themselves, they should have the
right to do so. If this means paral-
leling the lines of the Southern
Sierras Power company, it will be
because of the attitude and un-
willingness of the power company
to cooperate. 1 submit that the
people of Imperial Valley are in no
manner obligated to the Southern
Sierras Power company. AS a mat
ter of fact, the reverse is true, and
because Imperial Valley has de-
veloped and carried forward to the
point where it is today is not due
to the power company but in spite
of the power company.
Quotes West Offer
Now let us see just what Mr.. West
offers in regard to All-American
canal power. He starts out by say
ing there is no economic justifica-
ton for development of All-Ameri-
can canal power at this time, and
there will not be until Boulder dam
power has been absorbed and this
may be 10 years or more. His offer
is based on that premise, so ne
states that when market conditions
Justify bringing in of the canal pow
er plants" his company will pur-
chase such part of the power out
put as is required for use in I'm
perial and Coachella Valleys. This
power will be purchased at price
that will equal the cost delivered in
the valley of the cheapest alterna-
tive sources of power available to
the company. Of course, it is i'm
material to the power company
whether it pays the district one-half
cent or one cent for the power, as
this cost is simply added into the
rate at which the power is dis
tributed to the individual consumer
and the people have to pay the bill,
so, of course, Mr.. West can make
the statement which he did, that
the company would base rates, at
which the power would be sold,
upon the cost of power purchased
from the district, but he also add
ed, with proper allowance for
standby service"
Previously, MIR. West had COM
mented on the fact that the district
was proposing to build standby
plant at Brawley, which would be
saved if our power were sold to his
company. Then he turns right
around and says if the power is sold
his company there will be charge
for standby service. In other
words, whether the district dis
tributes the power or the Southern
Sierras, standby service will have
to be provided, the difference being
that if handled by the district,
standby will be furnished by low
cost diesel plant at BraWley, where
as if handled by the Southern Sier-
ras, standby cost will be the tre-
mendous investments which the
company has in its hundreds OF
miles of transmission lines, and its
expensive hydro plants in the Sier-
ras. over 400 miles from Ell Centro,
which anyone can readily under
stand would be much more costly to
the consumer in Imperial Valley.
One Of the reasons why the peo-
ple should develop and distribute
All-American canal power is to free
themselves from the unnecessary
investments of the Southern Sierras
Power company, and get away from
bringing power into the valley over
what has been termed by the pow
er company tine longest transmits
sion line in the world" which ac-
cording to MI. Dolson, now vice.
president of the Southern Sierras
Power company, has very high
losses amounting to, perhaps one
half again as much as other COM
panies."
Remember, as Nh West told you,
under the state law the power COM
pany is permitted to earn return
on it's entire investment, and, there
fore, if All-American canal power is
sold to the Southern Sierras Power
company, it means that the people
of this valley will always be bur-
dened with the return on the entire
investment of the Southern SierraS
system. This means that a con-
siderable portion of the amount the
people pay for power will go to pay
the Southern Sierras return on its
outside investments, whereas If the
people themselves distribute the
power this money can go to repay
the cost of the All-American canal.
Now, let us see just what is meant
by Mr.. Vests statement that the
rates for sale of power would be
laacnd on the cost the colnnanY paid