The people's voice. [volume] (Helena, Mont.) 1939-1969, 1954-05-07
HeIIs Canyon
BY E. j. PARKINSON, Great Falls
In Two Parts)

(In Two PartS)
There is a great deal more to our
electric power problem than most peo-
pie realize. 1t is not easy to assemble
facts and figures, to ana1yze and ar
rive at an intelligent conclusion. There
is no such thing as cheap govern
ment power" The government cannot
construct and operate dams and power
plants cheaper, nor even as cheap as
private capital. When federally pro-
duced power is sold for less than cost
plus interest, depreciation, transmits
sion, operation and maintenance, the
taxpayer is paying the bill
Another thing that few people are
aware of is that no electric power plant
produces more than an average of
about 40 per cent of it's installed capa-
city. For instance, Hungry Horse
Dam with a rated capacity of 2S5, 900
XIV, never produces more than an av-
erage of about 10000 XIV every "a
hours The reason why is simple enuf
when understood. During the day and
part of the night most people do not
have their electricity turned on and
their meters are not registering. Only
the power actually consumed is charg-
ed for. At about 500 pm, power con-
sumption at Hungry Horse is about
1000 XIV. Peak consumption occurs
around 600 pm, when it amounts to
nearly 100000 XIV. For the whole "a
hours, the 10000 XIV is all that can
be charged for. The same is true for
all plants including Fort Peck, Can
yon Ferry, and all Montana Power
plants.
Now [ believe the figures 1 have Civ
en- so far are indisputable. Let us ap-
ply them to Hells Canyon Dam. Mr..
Jerome G. Locke in his article appear
ing in THE PEOPLES VOICE, April
2, 1854, implies that his information
and statistics are probably obsolete by
several years, so | will endeaVor to
bring him up to date as of February,
1854. In doing so l will quote facts
and figures given by Mr.. Harold Nell
son, regional director of the Bureau of
Reclamation, and Mr.. Robert E. Hoggs
engineer for the Idaho Power Co., at
an interview given by them jointly in
the very bottom of HellS Canyon at the
proposed high dam site.
OF the numerous figures quoted by
Mr.. Locke, only one is correct. That is
the proposed installation of 686,000 XIV
at the federally proposed high dam, at
a cost of $50 million dollars. Most of
the rest of his figures are most seri-
ouSly in error. Now an engineers fig
ures are expected to be complete and
accurate. Let us Scrutinize Mr.. Lockes
figures and see how near they meet
that expectation. He lists eight down
stream dams whose prime power in
crease will be $4,000 XIV. However
he fails to state that of those dams
do not exist, have never even been
started and no appropriation has ever
been approved to start them. Their
construction is wholly problematical.
The estimate of the Bureau of Reclaim
alton is that these proposed five dams
will cost SS1 million dollars. Add this
to the $3.50 million dollars for Hells
Canyon Dam and we come up with
$1,241 billion. If the total prime power
Of all dams is as Mr.. Locke states, l.
100000 XIV, then the cost per installed
kiiowatt is $T,110.
Just where Mr.. Locke gets his fig
ure of $500 per kilowatt year to the
consumer is certainly deep dark mys-
terry, for several reasons. Bearing in
mind that power consumption and out
put is about of installed potential, we
come up with figures something like
this
Interest per annum on $1,11O install
ed XIV cost at per cent $ 1880
Retirement of cost in so years, or
2 per cent 1920
Operation and Maintenance, 1 per
TOTAL annual cost per XIV in
stalled ............ ...-..........,,.-... $3.50
Mr.. Locke states that the cost of
power to the consumer would be $1,000
per XIV year or 2.2 mills per kilowatt
hour The consumer is charged with
the power registered by his meter,
which on the average is 40 per cent of
the installed potential. Therefore his
per installed XIV is 40
per cent of 90, or - 1854
Actual cost in excess of receipts
.... ,...-......-.S 1926
This is only for power at the bus
bar in the bottom of Hells Canyon. 1t
is quite obvious that the rate to be
to the consumer according to
Mr. Locke, would not even pay the cost
of operation and maintenance, to say
nothing about interest and deprecia-
ton. The rate should have to be not
less than it's cost of 10 mills instead of
~ mills in order to break even.i On
top of that, cost, interest and depre-
ciation operation and maintenance of
long transmission lines, line loss, dis
tribution and collection, would be sub
more than the % mills quot
ed by Mr.. Locke. 1t costs nearly that
much on the average just to read the
REA consumers meter. | am afraid
they would have difficulty at that rate
in meeting their obligations.
Concluded next week)
NOTE: In addition to con-
GLIDING Mr.. Parkinson's letter, Well
also provide you considerable factual
material on Hells Canyon since it is
our opinion that Mr.. p. has not consid-
cred all aspects of this important prof.
ect.