Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-12-12
Power Dispute

NudIlCS ~. NQII Ill, WIZ CA
tolls the tax payments of pri-
vate companies in taking ex-
ceptions to a com m ent Of
columnist Thomas l.. Stokes, is
not as d e tac h e d from the
utility field as might be indi-
Gated by his statement. Il am
not now. never have been, and
have neither plans nor expec-
tations of being on the payroll
of either public power agency
or an investor financed util-
ity." We believe this is the
Charles D. Curran who served
as administrator of the Task
Force on Water Resources and
Power of the Commission on
Organization of the Executive
Branch of the Government, the
second Hoover Commission.
That task force made series
of recommendations a g ainst
public power which were so
drastic that some, such as one
proposing sale of Federal power
projects to private companies.
were not adopted, even by the
generally sympathetic commits
sion.
The detailed analysis made
by the F deral Government
about two years ago." which
Mr.. Curran says showed that
there is no significant differ
ence between Federal and pri-
vate power if taxes are
excluded, apparently is a ref
erence to q study made by the
task force whose staff he
headed. The task force study
loaded fictitious tax costs on
Federal power projects in an
effort to demonstrate that
these projects were not paying
their way.
A more satisfactory method
of determining whether taxes
account for the admittedly
lower rates of public power
systems is to compare operat-
ing cost items in published
data of the Federal Power
Commission for publicly owned
utilities and for private COM
panies. Comparable data have
been compiled by the Power
Commission covering nine
years, 1864. for power COM
panies and the local publicly
owned electric utilities-mu-
nicipal utilities. public utility
districts and various other
types of State and county cleo
trio systems which generally
provide retail electric service.
These data for Glasses A and
B electric utilities show operat-
ing costs and provide the best
available comparison of pub
lie and private power opera
tons. The data are exclusive
of taxes, both for the public
and private utilities.
In six OF the nine years for
which the statistics are avail
able. the public power systems
have had lower production
expenses per kilowatt-hour Of
electricity sold than have the
power companies. despite the
advantage of generally larger
size enjoyed by the privately
owned utilities. In five other
expense categories. the publicly
owned utilities have had lower
costs in each item for all Of
the nine years for which the
statistics are available. These
expense items are: Transmits
sion expenses per kilowatt-
hour sold: distribution ex-
penses per customer; account
ing and collections cost per
customer; promotion and adj
vertising expenses per 500 OF
revenue; and administrative
and general costs per 500 Of
revenue. And. remember. all
Of these comparisons from
published power commission
figures do not include any tax
payments.
Clearly. the lower rates Of
public power systems are not
simply a matter Of Federal
income taxes but in a sub
stantial measure reflect this
record Of more efficient OPP
Grafton.
Mr.. Curran purports to warn
that the public power issue Is
coming TO us in the Potomac
Valley. just as 1t came in re-
cent years to Georgia. North
Carolina and Virginia" APP
parently the threat is that We
shall have in our valley prof.
ects similar 20 John II. Kerr
Dam formerly Bugs Island
In North Carolina and Viz
GINA or CLARK Hill In Georgia.
Are the people Of the Roanoke
and Savannah River valleys
sorry these projects we're built7
DO they wish they had waited.
perhaps forever. for investor
owned companies 70 put the
waters OF their rivers 10 work
for them7
The tragedy Of the Po,omae
IA MOI a ahadow AZ pafhiie