The Bluffton news. [volume] (Bluffton, Ohio) 1875-current, 1953-10-08
|BPA Reafirms Decision That Wholesale
Power Purchase Is Best For Blufton
Council Requested Third
Time To Empower Con-
tract With Utility

A third Bluffton board of public
analrs request that it be empowered
TO enter into 10-year contract with
the Ohio Power Co. to supply the
villages electric power requirements
on wholesale basis, with the town
retaining possession of the electrical
distribution system, was heard by the
town council at meeting Monday
night in the town hall.
Although the board asked council
to proceed with the authorization as
a matter of necessary emergency
legislation, councilmen tabled the
request pending Button Business
Mems association meeting next week.
at which a report will be made bv
the association committee which has
been studying the local power supply
situation.
In requesting for the third time
since July that a program to buy
current and sell it to residents of the
community, letter from Carl Leb-
man, president of the board of public
affairs, emphasized:
"The definite conclusions reached
by the board and outside independent
advice is that the interests of the
citizens will be best served if Bluff
ton retains its electric distribution
system.
Lehman declared, "The real ques-
ton is whether or not the s466.5O0
offered by the Ohio Power Co. is of
more value to the village than the
earnings that will be available from
the electric light system, if its opera
ton is continued, or lost if the
property is Sold"
Actual 1852 earnings of the plant,
before bond and interest payments
were $4,000. BY buying current
wholesale, the board can realize adj
ditional earnings of at least $4,000,
or total of $4,000 annually, Leh-
man declared
These earnings, Lehman said, are
"much more valuable to the village
than the $466,500 offered. However,
this is based only on existing earn
ings and gives no consideration to
further growth"
A conservative forecast, the letter
continued, shows that existing net
earnings would be Increased to a
$4,000 per year average for the
nine-year period. These forecast
earnings are $4,000 per year in ex-
cess of the $4,000 per year value of
equivalent savings in bond principal
and interest payments of the $466,5
offer"
In addition, retaining the system
will provide the same street lighting,
which otherwise would cost the town
$1,000 annually. The same is true
with respect to lighting for the viii
lage hall, traffic lights, ETC., estimat-
ed at an additional $500, Lehman
predicted additional municipal taxes
amounting to 1.5 mills would be re-
quired to meet this expense.
If the electric system is sold,, the
letter declared, expenses to operate
the water system will be increased,
"inasmuch as the water department
is now operating at loss and the
loss has been carried by the electric
department. The reason for this is
that only a small portion of superint-
endence and other overhead and office
expense is charged to the water de-
partment."
In his letter Lehman disagreed
with the Ohio Power Co. claim that
100000 is required for improve
ments to the distribution system here.
Instead, the board declares that
100000 "will place the property in
good physical condition"
Most municipalities today are
faced with a continuously increasing
need for money plus higher taxes to
produce it, the letter also pointed
out. "The electric department now
provides source of income or equiv
alent which will be lost forever if
the property is sold"