Imperial Valley press., 1938-03-04
DISTRICT
REPORT
CONTINUED
l2sth Installnieni1

eral competitive power as read from
the trend curve and the probable
sales by the district are given for
each year from 1888 to 1880. Atten-
ton is called TO the fact that these
are general trends and that annual
departures are to be anticipated
that sales by the district will bring
in gross revenues of about 100000
in 1888, that such sales will rapid
ly increase to about $60000 within
five years, and that thereafter the
gain will be SLOW.
Cost of Operation
and Maintenance
In this same table } there are
given estimates of the costs OF pro-
duetion and distribution and COM
mercial expense incident to the
operations of the hydroeleetric
plant now being constructed on
All American. canal and To ne
diesel plant at BraWley. The lat
ter will be used for all production
until the hydroelectric power be-
comes available and then viii be
held as a standby unit. The CORE
spending estimates of the district
and of the company are shown on
Diagram o. together with trend
curves corresponding to the values
given in Table s. While there Is
some difference between the estl-
mates of the district and the COM
pany. extensions of representative
curves show nominal departures
from the trend deemed by US 10 be
most reasonable. In round numbers,
the bare cost of operation and
maintenance will be a little less
than 100000 for the first tive
years of operation, and somewhat
greater than that amount III sub
sequent years.
In its analysis OF revenue and
expense, the district has generally
assumed that additions and better
ments would be paid out OF Subse-
auent bond funds The company,
in its estimates, has set up allow
anees for depreciation, including
replacements, and for bettermentS
To be paid out of operating reVe-
nues. In view of the fact that the
power contracts with the United
States require amortization OF capl-
tai in each year, the customary
allowances for depreciation are not
Applicable to this situation On the
other hand, requirements and m
cidental bettermentS, as dlSt1n-
guished from major additions TO
production facilities and extensions
of the distribution system, should
be provided for out of operating
revenue. Accordingly, we nave
made allowance for replacements
and bctterments in the amounts
shown i'm Table 5, ranging from
$25 900 in 1910 TO $4,000 in l930.
These represent in effect depteela-
ton allowances not offset by amor
tiZation of capital. on Diauram Q
is shown a trend curve lA) OF PROB
able total costs for operation, malh-
tenance. requirements and better
ments, which should be PAID out
of operating revenues.
In the last column OF Table D
is given the probable net operating
revenue which the district can eX-
pect to enjoy from the sale OF pow
er in Imperial Valley exclusive
of sales to any outside area. rms
net operating revenue should be
about 100000 in the first year ol
operation of the hydroelectric plant
on All American canal and there
after should increase slowly to a
maximum of roughly $400,OO0 per
year. As stated in the discussion Of
outside markets, we do not believe
that appreciable net revenue should
be counted upon from the sale OF
power in Coachelta Valley, in the
yuma area, or elsewhere outside
of Imperial Valley The possibility
OF such revenues being obtained
from some outside source should
not be ignored, however, in any
financial plan.
TO Be Continued)
Navajo Indians near Wupatki
national monument, Arizonal be
lieye that airplanes have fright
pnpd away tbP rain bird