The people's voice. [volume] (Helena, Mont.) 1939-1969, 1953-10-09
New Power Policy :.
YOUR RE.A COOP MAY BE A dead DUCK
Within Three YEARS!
New Power Policy


Many assertions have of Secretary McKays De
parment of the Interior that rural electric have nothing
to fear from the public policy Interpretation laid
down by the Eisenhower Administration Such decidedly
not the The policy Interpretation announced few weeks
ago not only will work to styme further expansion of
vice by REA Montana
OF such armerowned mortal danger OF gong o
of existence.
Under the Eisenhower revision of the policy pr %
customers have 80 (from date policy
ed) to exercise their preference rights Before the end
days they must apply for the amount of they nee
they have plans for expansion in the future to
power when that time they will be forced to bU
power each month than their needs even though
goes to waste Few rural electric afford
that luxury and still pay off and interest and main
tain operations in the black.
After the 90day eapse all public power currently available
will be sold at dump power rates to distributor
user who has market use for it. I'm that
primarily Montana Power Co and MonanaDakota Utties)
However in Montana II of the 25 electric do
not buy directly from the federal government and
of securing directly from public
plant because the power trust lobby successful IN negoa
ing these notorious wheeling contracts early in 1851 thus
knocking out pubcyowned transmission systems in much of
eastern Montana previous, setting the stage for
the lobby plead its Congress that transmission lines
unnecessary and represented duplicaon Montana
Power secured approval of 55m wholesale rate to rural
electric replacing the former 9m rate from the Pub
lie Service Commission Rural electric order to
the much lower rate had to sign five to eghyear
with Montana Power these contracts
han three DID, and have from to five to
At the end of the contract period the bind Will
Montana Power Company be under legal obligation to
wholesale contracts with the II electric
presently buying from the utility at the 55m XVIII
price?
position to claim preference rights within the 90day
period because of the lack of publicly comparatively owned
transmission lines Even hey did have to such
because they tied with contracts for several to
couldn't exercise their preference rights within the
less than 80 days remaining This because they would
buy NOW whatever their preference request
called though they would need for
This financial outlay-for going to waste-not
a single REA coop could carry and avoid bankruptcy
1t adds up this. When these MPCo.-REA coop
Montana Power going to be in position of
charging whatever wholesale public
will permit they may be able to deny wholesale service
altogether Because the financial soundness of these
coops predcated the lowest possible rate higher
eventual insolvency. No wholesale power would
that Montana Power would be in position to buy out
the rural eecrcs at their figure That short is what
the Eisenhower power policy may do Montana rural
electric this state longer has legislation the
books which provides the legal machinery whereby the people
into the production and distribution
themselves. Remember SD 04 which repealed the State
Identification Authority Act passed by both houses
the 1858 legislature and signed into law by the Govenor
Recalling the with which Montana Power recently
persuade the Public Commission grant
outrageous 80 to 47 natural getting
considerably higher wholesale rate approved shouldn't
present much of an obstacle to the power company
uNppE pEpREcENTc cThTE IN