Evening star., 1938-02-16
NEW WPOWERPLANT
PLEASES CULPEPER
P. W. A. Project Has At.
tracted New Industries
To Town.

" IVVIls
The little town of Culpeper. Va.
inhabited by some $500 persons, not
only has the first municipal power
plant built with p. w. A. funds, but
something of a gold mine as well.
To say the community is enthusi-
astic about its power system is putting
it mildly and here are some of the
reasons why:
l. Its electricity rates are about IS
per cent lower than when the Vir-
ginia Public Service Co. served the
town.
2. The plentitude of power revenues.
even with the reduced rate. has en-
abled the town to cut its real estate
tax from SIPS to 81 per Sl00, Prop
erty is assessed at about one-third
of its actual value. and the tax rate
is believed to be the lowest for any
town of like size, in the State.
3. The power plant to a large ex-
tent has provided the means of pay
ing or the immediate prospect of
paying bonds for streets. water. sewers
and a municipal building. BY l94l
the power system will be entirely
paid for and the town will be out of
debt except for s35.000 of bonds on
the municipal building which are not
callable until 1947.
4. Two new industries, employing
local persons, have been attracted to
the town by the low power rates and
there are prospects that others will
come in the future.
Contract Signed in 1884.
Victor Won Gemmingen, town man
ager. said residents Of Culpeper de-
cided early in 1884 to build their
own power system after they had
been unsuccessful in efforts to induce
the Virginia Public Service Co. to
reduce its rates.
Application for a loan and grant
from the P. w. A. was made in 1888.
and IN February, 1884, the necessary
contracts were signed. The plant was
completed and went into operation
by October l of that year, the total
cost being $l63.000. This was made
up from a loan of $4,000 and a
grant of $45.000. The loan was Sc
cured by a bond issue taken up by
P. w. A. at cost to the town of
per cent interest. Later this was re-
financed through the Culpeper Ma
tional Bank at 2 per cent interest.
The construction of the plant was
not completed without difficulties
Several suits were filed by the private
utility attacking the legality of the
project and preliminary injunction
held up the work for three or four
days. but in the end the State courts
ruled in favor of the town.
Private Lines Junked.
Culpeper not only built its own
generating system, but put up its own
distribution system, resulting in the
junking OF the private lines.
The town so far has installed TO
meters. the total receipts last year be-
ing s69.514.l9. as against operating
costs of S21, ,22484, leaving a profit
of $4S,289.35. When payments on the
plant are completed in 1941, the sys-
tenn still will have some 80 years
Of life left-a period in which all
income above operating costs will be
clear profit.
Since the plant was installed, Mr.
Won Gemmingen said, the towns
power supply has been cut OH only
once. That was during 30-minute
period required for replacement of a
transformer burned out by lightning.
The generating system is powered
with Diesel engines, the community
buying its fuel supply in 12,000-gal-
Ion lots. The oil Is cheaper than
coal and much cleaner, Mr.. Won Gem
mingen said.
Among the accomplishments Of the
town attributable to the profits from
its power system to date are payment
of 10000 Of 20-year-old street bonds,
the payment Of 5000 of sewer bonds
and the retirement of $4,000 of the
power plant bonds. In addition, $780,
0O0 Of water system bonds will be
paid on June l.
A garment manufacturing plant
and q chair and chicken coop factory
already have been started in Cul-
peper as result Of the low power costs.
These industries have given employ
ment to some 200 residents Of the
town, and negotiations are now under
way for the construction Of hosiery
mill which would provide additional
employment.