The Daily Alaska empire., 1947-03-28
REPORT BY WALTER T. STUART, ELECTRICAL EN- GINEER, TO THE CITY OF JUNEAU COVERING INFORMATION RELATIVE TO THE ALASKA ELEC- TRIO LIGHT AND COMPANY COMPANY

could be made at small cost to in- crease the yearly profits about 10000 l to 15,000 thousand dollars.
 II. Several items of expense of operating the system during five years shown, are really substantially lower, but did not have sufficient time to calculate them, in other words. believe profits were more than shown for Juneau only
 12. Cost of electricity purchased may drop as much as s10,000 in one year by increased electricity pro- duced by the company's hydroelec- tric plant in Juneau due to increased { rainfall
 13. A thorough rate study is greatly needed.
 ] 14. The present yearly horsepow- CT tax of $5,055 is now paid the Alaska Juneau Gold Mining Co., and paid by them to the government, and is on the basis of Sl0O per year horsepower. Once before when the mine shut down this was reduced to 10e per horsepower, and an ap- plication should be made to have it reduced again, thus effectmg a large saving if allowed
 i 15 If merchandising is not car ried on, there is more room than is necessary for utility operations, so that at no great expense, the office building could serve as fine city building for all departments. | 16. I cannot pass on the opera tions of the Juneau Water Company as adequate financial reports were never available for study. A thor ough study of actual costs, less de- preciation and operating costs, is necessary to determine fair rates and value of this water system. Am informed the Territorial law re- quires books be kept in the territory, so suggest that the Juneau Water Company be required to comply with this.
 F. Operating reports of the Nell son Water Company were furnished, but have not had time to study them.
 18 While $9o0.oOo is a high value for the electric system and it's Gold Creek water right, as business proposition, I believe it would pay for itself I further believe rates could be lowered, but no change should be made in rates until they were Investigated for a year, to see if advisable.
 19. The much lower electric rates set last year, after long investiga- tion, could be set up, could probably be successfully defended in couit, and could result in a much lower price for the electric comuany, if such action is desired.
 20. Even if the town of Douglas takes over it's part of the system, and Ii some other agency would take over the rural customers, the profits, as shown, would be adequate, if Juneau only is furnished electric service.
 2l. On the basis of an estimated 275eo bond interest the yearly in- terest would De S24,75O and f bonds were for 25 years, or S36,0o0 paid off yearly, the total would be S60,- 750 yearly fer interest and principal payments The average system profits for last five years if under city opeartion was $132085. The interest decreases yearly Suggest bonds be callable after few years, and be sold by public bidding.
 p. All these calculations are on the assumption that the utility de- partment would pay the city the same taxes the private company did, (which for Juneau was $7,S67 in '46) and that the city pay utility depart ment for electricity. The utility department could well afford to re- duce the rate to the city, which is a matter of policy.
 23. In acquiring a utility in this manner, no tax money is needed in fact cannot be used, and also the utility should reimburse the city for all expenses last year for the appraisal and the rate case.
 Respectfully submitted,
 WALTER T. STUART
 Electrical Engineer