The Daily Alaska empire., 1947-03-28

ing the corporation license fee var, in amount from year to year It i not at this time certain that tn city would not have to pay some O them.
 Whether purchase of the AEL&I Company utility would save tn City anything on street lightint and light and power at the Smal Boat Harbor is doubtful.
 If it did save anything, the util ity revenue would decrease in pro. portion to the saving. Whether tho operating costs could be reduced under City management cannot bc determined until tried out
 It has been reported to the Coun. cil that repairs, rehabilitation. op. erating capital, etc, would reouirt an estimated $l00,000.00 for tht first years operation by the City This sum, or any sum required fol such purpose, would have to come cut of revenue from the utility 8. the bond issue covers only tht purchase price. We have no sound basis for the above estimated cost of $100,0000o. We believe there i. sound basis for assuming that dur ing the war years, because oi shortage of labor and materials only necessary repairs were made by the AEL8SP Company; and that large scale repairs, rehabilitation and improvements are becoming in- creasingly necessary. They will all have to come out of the utility revenue.
 It has also been represented to the Council that the Baranof Hotel will soon be providing its own pro- duced light and power; and will also supply light and power to the Gastineau Hotel. To offset this loss of revenue, there may be taken in- to consideration light and power furnished to the recently con- structed Goldstein Building, and which will be furnished the nearly completed Simpson Building, and to the Northern Commercial Com panys plant at the Small Boat liar bor; and perhaps to other new us- CTS.
 It has also been represented to the Council that the peak of de- velopment power production has been reached with the Alaska Ju- neau Gold Minding Company s mine and mill in operation; and that the Alaska Juneau developed source of supply plus the AEL&P Company developed source of sup ply is not sufficient with Alaska Juneau operating) to supply any expansion in the use of light and power in Juneau and vicinity; and that in case of expansion large sums would have to be raised to develop more power. The basis Tor such representations seems to be statements made to the Council at the rate hearings by Alaska Ju- neau representative and others to the effect that during certain win ter months, when the water supply is curtailed by freezing weather, there is net enough water and steam power to supply power to both the Alaska Juneau (operat- ing) and the City of Juneau and vicinity. Statements were also made to the effect that for short per- iods of time during Winter months the Alaska Juneau (operating) was compelled to shut down some of it's operating equipment for lack of power. The Councils recently received letter to this effect from MT. Williams, Manager of the AL aska Juneau Gold Mining Com pany supports the representations. The AEL&P Company has not enough of it's own developed power to supply the City ol Juneau and vicinity, and consequently buys a large part of it's power from the STABLER FINAL ........ Alaska Juneau Gold Mining Com pany. Forseeing the time when it's purchases from Alaska Juneau may he curtailed or shut off, the AEL&P Company, over a long per- iod of time, has wisely built up a large reserve fund to develop it's own power. This is the fund now invested by AEL&P Company in bends. This fund will not be ac- pired by the City of Juneau by purchase of the AELGP Company utility. All funds that may become necessary for such purposes will have to come out of the utility revenue.
 It seems pertinent to note that the net revenue of the AEL&P Company for 1946 tuntil November 1, 1946 when the lower rates went fee S 1500