The Daily Alaska empire., 1947-03-28
March 2e, 1947

-e'4 SAA -Nf AOIf
 Honorable Mayor and Council,
 Juneau Alaska.
 !! Gentlemen.
 Tn response to your request I am rendering my report on the net profits, savings in operating costs, future possibilities, bond require ments and other information deem- ed pertinent, covering the electric operations olrlv, of the Alaska Elec- tric Light and Power Company prop 1 critics, if under municipal ownership.
 This covers the last five years op- eration of area covering Juneau, Douglas, and rural, also if only Juneau is served
 Profits of merchandise and bonds interest have been excluded The system expenses incorrectly charged to Juneau, have had to be partially estimated for three of the five years due to the limited time available, but are conservative, and I believe profits are little higher than shown covering Juneau only.
 l. I have shown that Federal and Territorial taxes need not be paid under city ownership as found from experience and by recent inquiry of government departments concerned. 9 Have allowed adequate depre- ciation. ie. Profits are after de- preciation fund allowed for 3. The profits rom electricity are sufficient to pay for operating the system, making all reapirs; paying bond interest and paying bonds off as they become due also paying for considerable additions to the sys- tenn.
 1. The rebuilding of balance of the old Hume using Black and Veatch's costs new would be about 5000. This is the only large repair that is necessary and could be spread over two years proably.
 5. A successful way to keep utili- ties out of politics is to place all employees, including the manager, under form of civil service.
 6. An economic survey, and ex- tremely complete operating data, covering municipal operation of complete electric system, consisting cf Juneau, Douglas, and rural area, for five years, are required by in- vestment houses. Some reports are also required for Juneau operations. Dun and Bradstreets, and Moodys Investors Service. require the same and more for a ten year period, i'll crder to rate bonds, and rating is necessary to get lowest interest. How future power needs may be supplied is also necessary informa- tion required.
 T. I furnished some financial data to investment houses last year. Recently inquired of them if this revenue bond issue could be sold readily and they thought it could.
 B. After merchandising depart ment is charged with it's proper share of expenses, there is very little profit made, not a fair profit.
 9. For the last five years the companys modern $50 k.w hydro electric plant in the city, has pro- duoed nearly half of the electricity read in Ii1,ooor1 rTlpoYo ie. oo,1ciSar able unused water power on Doug las Island and on Gold Creek, both formerly used that would advise Investigating for increased needs of the city and also Lemon Creek. The Alaska Juneau Gold Mining Co. has had surplus of power in summer from it's six fine hydro-electric plants, but has been occasionally short of power for short time in the spring, making it necessary to run their large steam plant. A mod ern diesel plant. needed for part of the winter for part of the load would supply electricity at close to what is paid the Alaska Juneau Gold Min ing Co. now. If the Alaska Juneau Mine should resume operations, the greatly Increased amount of cleo tricity sold to mine employees would increase profits and justify increas- ing the supply of electricity by the city, or by the Alaska Juneau Gold Mining Company.
 10. Engineering il mpr o veinents