Imperial Valley press., 1938-02-28

Contract between the District
and Public Works Administration
cOntinued:)
All extensions thereof and addi-
tionS, betterments and improve
ments thereto, hereafter construct
ed or acquired, except rural trans
mission and distribution lines, IL
nanced in whole or in part by Ru-
raj Electrification Administration,
including customer service connec-
tions to said lines, being herein
called the "system'D by making
a grant to Imperial Irrigation Dis
trict (herein called the "ApplicanO
in the amount of As per cent OF the
cost of the project upon completion
as determined by the Federal En-
ergency Administrator of Public
Works, but not to exceed in any
event, the sum of $1,242,000, and
by purchasing, at the principal
amount thereof plus accrued in
terest thereon, from the Applicant,
obligations (herein called the
"Bonds'D of the description set
forth below Cor such other descrip-
ton as shall be mutually satisfac-
tory in the aggregate principal
amount of $1,518,000:'
The contract with the United
States, pursuant to the Rural Elec-
trification Act of 1886, provides in
part that the Government agrees
to purchase revenue bonds of the
district in an aggregate principal
amount not in excess of 100000
or the cost of the electric trans
mission and distribution lines or
system to be constructed and oper-
ated by the district.
The die having been cast, moth
ing is to be gained by a discussion
of the merits or dement's of the
proposal of the power company and
of the decision of the district. Ac-
cordingly, the following discussion
is limited to an analysis of the
revenues to be derived by Imperial
Irrigation District from the opera
| tionS of its power system in compe-
tition with Southern SierraS COM
| pany.
Available Market
In recent years number of diff
ferent estimates have been made
of the amount of power which
Imperial Irrigation District would
be able to sell if hydroelectric
plants were built on All American
canal, but these were far from
consistent.
The most optimistic estimate is
given in a report by VIM. s. Cone,
dated Jan. 10, 1885, which was
transmitted to the board of direc-
tors by the chief engineer of the
district. In this the following
statement appears.
"The power company is only
required to report revenue from
the incorporated towns. In the en-
tire district, both urban and rural,
the company reports that they sold
during 1888, 81 ,003, ,534 XVIII.
with the record of growth of
the Modesto Irrigation district and
the Salt River Valley before us,
and when we consider the rapid
development in apparatus for the
comfort in living conditions and
the convenience in carrying on
almost every industry, it appears
that by the time these plants are
built, conditions will be such that
they will be rapidly loaded up, and
in the near future would expect
almost as soon as the system could
be completed, an income compar-
able with the following estimate:
"By reducing rates to consumers
30 per cent would double the pres
ent consumption in the Imperial
and Coachella districts. This would
mean the sale of about 130,000,000
XVIII. at &c and produce a revenue
of $2,600,00000. Pumping to one
half the higher lands would re-
quire 55,250,000 XVIII. at 1c would
give a revenue of $552, 10000; one
half the drainage $500 k.w.-23,-
100000 XVIII. at 1c $23 100000, would
produce an income as follows:
ITO Be Continued