Evening star., 1954-10-31
Early Power Deals Made Without Dixon Yates Fwor;
IS Firms Now Busy With Big Construction Program

million steam plant at Joppa
H., near Paducah, which was
undertaken by a combination OF
five companies operating as
Electric Energy, Inc.
The newcomer shared the in
creased distribution with iva
at approximately the same
scheduled rate the latter was
getting from the Atomic Com
mission. The iva also expanded
/ its facilities.
Later on. to meet the power
needs OF another atomic unit at
Portsmouth, Ohio, the Acc
lined up a second deal with Is
utility companies which formed
the Ohio Valley Electric Corp.
to build steam plants at CALI
polls, Ohio and Madison, Ind,
for the new service.
The dual OVEC project now is
about Is per cent complete. Joppa
is operating, although construc-
ton has not been completed.
Opposed to Project.
Atomic Energy Commissioner
Thomas E. Murray, who now has
Joined the opposition to the Dix
on-YateS project, was a vigorous
advocate Of both EEL and OVEC
ventures. In a magazine article
discussing them. he said:
These, I think, are good ex-
ampleS of the ways in which the
boundaries of Government own
ership can be contracted"
Later on, however, Mr.. Murray
told a congressional hearing
that the Joppa operation had
been found wanting due
largely to1r"a cyclone of disas-
trous and inexcusable labor
shortages" He said the five
companies didn't watch their
job with the eye of the pro-
verbal eagle"
Middle South Utilities, part
ner with the Southern Co., in
the Dixon-Yates set-up is also
one OF the EEL group.
The Dixon-Yates project grew
out of a meeting at the Budget
Bureau last December when
Detroit banker Joseph M. Dodge,
then Budget Director, ap-
preached Atomic Energy COM
mission officials on the feasibil-
ity Of having private industry
take over part of TWAS power
load for the atomic plant at
Paducah and meet growing
needs Of the area.
Turned Down Proposal.
The Eisenhower administra-
ton. admittedly aiming to halt
the expansion Of the IVA, had
already turned down a iva
proposal for increasing its gen.
Grating power by building a
steam plant at Fulton.
Eventually Government and
utilities negotiators here decided
that 1t would be better to locate
new generating facilities in the
Memphis area. rather than near
Paducah-Joppa. because of the
marketing advantages that would
be enjoyed should the Atomic
Commission load be reduced.
making it necessary to find new
outlets for the power.
That clinched the deal for
Middle South Utilities and the
Southern Co., whose principal
officers, Edgar H. Dixon and Eu-
gene A. Yates had been sitting
in on the conversations. Presi-
dent Eisenhower ordered the
contract negotiated.
Still Has 2 Hurdles.
The Dixon-Yates deal still
has a couple of hurdles to sur
before it is in the clear.
Unless the Congressional Joint
A tonic Energy Committee.
scheduled to meet here Thurs
day, decides to waive the watt
ing period, the contract viii have
to lie before the new Congress-
for 30 days so the legislators will
nave an opportunity to pass on
it. Democratic control on Capitol
Hill would just about doom the
undertaking.
Another fight is in prospect
also before the Securities Ex-
change Commission, which must
pass on the corporate set-up pro-
posed bv Diyon-vatec