The people's voice. [volume] (Helena, Mont.) 1939-1969, 1952-05-23
CONTINUED from page one)


largely nullified - by the con-
tracts.
Kenfield then went into detail to
show the commission just how the
contracts work to the definite disad-
vantage of the people while provid-
ing the private power company with
lush cash contributions from the fed
eral treasury and an immense reser-
voir of cheap power. (For all practi-
cal purposes, the turning over to the
company, the entire power output of
tax built Canyon Ferry dam.-Edi-
tor. This very important detailed
analysis of the wheeling agreements
by Kenfield, follows:
The general wheeling agreement,
Contract No. 179r-1836, is broad in
its application and covers all of Mon
tana east of the Continental Divide.
The government power project at FIT.
Peck is specifically named but the
agreement apparently applies to all
present and future government power
projects in the whole area. This con-
tract is effective until December 81,
1870, but can be cancelled after De-
cember 81, 1860, by three-year no
tice given by either party.
Under the terms of the contract,
the Montana Power Company is paid
a wheeling charge for the number of
kilowatt hours of current it delivers
to government customers. The rate
for this service is one mill for the
first so miles, 2 mills for the next
so to 100 miles; mills for the next
1O0-150 miles and mills for all dis
tances over $50 miles.
LARGESS ON LARGEss
In addition, the Montana Power
Company gets an extra allotment of !
power for line loss amounting to a
per cent of energy delivered to each |
government customer for the first |
so miles of distance and this gradu-
ates up to Is per cent for all dis
tances of more than $50 miles. 1t !
seems that the government gives this
power whether there is a real line
loss or not
The costliness of this arrangement /
can be seen by some comparisons: The
distance between Fit. Peck and Great
Falls is about 290 miles. The Montana /
Power Company has been getting fed
eral power carried over the govern
transmission line for 2 y
mills per kilowatt hour since July, i
1943, under contract No. 12r-1416.
By this contract the federal gov {
eminent stands all the line-loss due Z
to transmission. The Montana Power 4
Company pays only for the net kilo-
watt hours it agrees to take. Under
the wheeling contract the Montana ,
Power Company receives from the
federal government a mills for gov !.
power it would carry the l.
same distance over power company
ines elsewhere. Furthermore, the
gets an average of 16 per
cent of the power for free because of |
ZEAL or theoretical energy lost in I
and which Uncle Sam
las to make good. The power COM IL
'any only wheels the power. r
In another comparison it should r
,e remembered that Bonneville Pow :,
II Administration west of us pro- ;,
luces and delivers government pow .
r for approximately 3.5 mills per \
,ilowatt hour to rural co-operatives 9
md for less than that to private ;,
'ower companies depending on load r r
actors.
Another feature of the general -
wheeling agreement is that it is linn
ted as to future expansion of power :,
se. The customers to be serviced u
trough the contract are definitely o
sted and consist of II Montana rur- /"
| electric co-operatives, 7 irrigation II
istricts, associations and units, Fort g
'elknap Indian Agency, Veterans Adj -
National Guard Units, -
'ort Harrison, Helena, and the Army !"
Air Base, Great Falls, Montana. Mu- r
are not listed. AS | I'M &c
erstand the contract the Montana r.
over has the right to withhold trans u
lission service to additional custo-
lers of the United States Govern II
lent or for additional government tf
over loads The annarant1v means D.