The Key West citizen., 1954-11-30

issue TO finance the eXpan-
sion program.
Their action was prompt
ed by a comprehensive en-
gineering report submitted
by R. S. Beck and Asso-
ciates, public utility ana
lysts, which states that if
Key West and the lower
keys progress at the ex-
pected rate, present power
producing facilities will be
inadequate as early as 1853.
Expansion Need
AT the present time, the en-
glneers added, breakdown in the
steam generating plant could re-
suit in an inability to supply con-
sumers with needed power. The
expansion would more than double
the present capacity.
The expansion program, accord.
ing to the utility board resolution.
would finance the addition of a
1880 kiloYatt generating unit at
the steam generating plant at a
cost of $3,200,000; the extension of
distribution facilities, for which
$4,000 has been earmarked and
the construction of a storage and
distribution building costing $780,
600.
Interest, contingencies and n
nancing costs would amount to
$490.000, according to the resolu-
tion.
No Cost To TsxpsyeFs
Merville Rosam, general man.
ager of the electric company,
pointed out that the proposed ex-
pansion program "would not cost
the taxpayers a penny" The
bonds would be financed out Of
electric service revenues.
Rosam also commented on the
huge growth of the city electric
system, saying that his forces are
hard-pressed to keep pace with
the progress of the city.
"Who could have forseen, q
couple Of years ago, the tremen-
douS influx of business into Key
West" said Rosam.
The present capacity of the elec-
trio system is 16, 800 kilowatts. This
includes the steam generating
plant placed in service Nov. Is,
1852, with a capacity of 10000 kilo-
watts and the old diesel generating
plant which can produce only
1890 kilowatts.
Growth Predicted
According to the engineers
figures, demand will amount to
20, 700 kilowatts in 1858 and jump
to % 500 in 1859.
they point out that the expan-
sion program would require two
years and that time is short If
shortage of electric power is to be
avoided.
The financial condition Of the
company, they add, is in such
good shape that it is economically
feasible to embark on the expan-
sion program.
The bonded indebtedness Of the
City Electric System, at the pre-
sent time amounts to A,723, 900.
This figure includes a $1,500, 900
bond issue to finance the cost OF
buying the utility from its privats
owners in 1943 and a $500, 900 re-
venue bond issue sold to finance
construction of the steam generat-
ing plant and the extension OF elec-
tric service to the lower keys IN
1851.
Business Boom
The company has shown a totally
unanticipated growth as a result
of the business boom In Key West.
For example, when the city took
over the operation of the utility
in 1943, the company had only -
PIT customers. Annual revenue a.
mounted to $390. 900.
At the present time, the COM
pany serves 1889 customers and
gross revenues this year viii a.
mount to more than 81, 100000.
The Navy, which presently buys
Is per cent of the total output Ut
the city electric system, Is also
expected to make eyer-increasing
demands for service as their Key
West installations are expanded.
The extension of electric service
in the keys in the next few years
! ie nISo ovnaefod IN he steuDed up.