The Key West citizen., 1954-10-16
Nv RUSSELL BR,NEs

Dix011-YateS power group a 8 per
cent profit on its investment, with
no specified profit ceiling, if. il
builds a new plant near the Ten.
nessee Valley.
This was revealed today by a
study of the controversial and still.
under-wraps ninth draft OF the pro.
posed contract, which the Atomic
Energy Commission has approved
but not yet signed.
Based upon present cost esti.
mates, the contract now calls for
the Acc to pay $40, TAG, 900 annual.
", including federal and local
taxes, for the 25-year life of the
contract-$177, 900 a year more
than previously reported to Presi.
dent Eisenhower and Congress.
The Acc would absorb any ma
for increases in the cost of coal
and labor, as well as taxes, and
would be credited for decreases,
the contract shows.
The document now is before the
Senate House Atomic Energy Com
mittee which is scheduled to meet
Nov. A to decide whether to give
an immediate go-ahead for the
project or hold it over until the
next Congress.
The administration has asked for
quick committee approval. Oppo-
nents want consideration put off
until the next session of Congress,
as required under normal pro-
cedure for such contracts. The law
requires committee review of the
contract before il goes into effect
but does not allow the Senate
House group to veto it or change
its terms.
The disputed plan--a center of
the public-vs.-pr power con-
troversy- calls for the Dixon-Yates
private power group to build a
1O7- -million-dollar steam plant at
West Memphis, Ark, the plant
would send electricity through
Tennessee Valley Authority public
power lines to replace some iva
power used by Acc.
The Dixon-Yates group, com.
posed Of Middle South Utilities,
Inc, and the Southern Co., would
invest 51a million dollars. The re-
naming a m o u n would be bor-
rowed by Dixon-Yates from pri-
vate sources at about 319 per cent
interest and this interest cost, the
contract shows, would be paid by
Acc as part Of Dixon Yates
charges.
Rep. W. Sterling Cole (R-NY),
chairman of the Atomic Commit.
tee, indicated today the Acc soon
may make the proposed contract
public. The Acc approved it early
this month but the terms have moi
been officially disclosed, despite
repeated demands for their dis
closure by critics of the plan.
Cole returned to Washington to-
day and repeatedly contacted Acc
officials about releasing the docu.
ment after being asked to do SO
by at least one member of the
committee.
Cole told a newsman .'there is
nothing to hide"
"The administration preferred to
wait until the committee acted on
It," he said. "But as one member
Of the committee. l see no reason
why it cannot be published.
He said this should be done by
the commission, rather than the
congressional group.
A copy Of the complex proposed
contract made available to the
Associated Press showed that: i.
l. Basic yearly charges to be
paid Dixon-Yates by the Acc
would include $495, 900 identified a:
8 per cent of the companies con
templated 51a million dollar in
vestment.
Any earnings above the $495 ,OO(
would be placed in a special funt
from which Dixon-Yates coulC
withdraw to make up the differ
ence in any year when earning.
fell below that figure. When the
fund exceeded $500, 900, the com
pany and the Acc would split the
excess. (Whether Dixon Yate:
might actually earn more than +!
per cent is separate question
informants said, depending on eco
nomic factors and on the ruling.
of federal and state regulator,
commissiens.)
2. Dixon Yates is authorized Il
sell power generated beyond Acc
needs and to tie in other utilit,
lines to, the proposed plant. The
contract specifically calls for tie
in with the Arkansas Power anC
Light Co., subsidiary of Middle
South Utilities.
3. The Acc would pay replace
ment costs the first five years a
the annual rate of S524.OOO, includ
ing whatever portion of that i,
taxes. After that period Aces re
placement payments would drop Il
about $250,00O yearly.
4. AS part of one charge TO !;
under the contract, the Acc woult