The people's voice., 1957-08-23
Editorial
MPCo. Again Hungry

MP(0. Again hungry
Montana Power Company has applied for electric rate IN
creases ranging to % cent In doing the COM
panv making much the assertion has not had rate IN
crease in As years. electricity has been steadily going
in price while all other cost Oh living lVeiS Nave o
Such Contentious while containing thread of plausiblity
so far as the casual concerned relevant
TO the merit or merit of the higher rates the utility
asking the Public Service Commission to approve
The only pertinent question at bar is Does the utility need
substantial increases in order to MAINTAIN
service patrons and at the same time pay reasonable
return it's stockholders?
NPCo President Jack Coree at the recen1
June 19) meeting companys stockholders, we'll as
perusal the utys financial balance sheet casts grave
doubts rate increase IN order here IS even
posbilv the Public Service Commission should order MPCo
to show cause why shouldn't reduce electric rates
Reviewing stockholders the MPCo has made
since 1916 Coree pointed out in his report that
revenues increased to $9O45342 increase
of 200 per cent 1916 through 1885, Commercial revenues
showed similar trend. "The increase from 1916 through
1856 he sad $2,179,719 to $5467O64, or an IN
rosa of 15O per cent pointed out that the
her Of industrial users in the 1year period jumped
from 1921 to 1854 increase of 986 per cent and
stated I'VE see no reason why growth development
should not continue throughout future years.
Referring to the steady growth of business enjoyed by the
~ A. first five months of 1857 he said Revenues
in 1857 are satisfactory indicate that Montanas growth
and development continuing to progress IN very desirable
This particularly true SO far as MPGo IS concerned
according to Coree income $267O5, or four per
cent over the first of 1885, he said lin this con-
necon should be pointed out that same period 1900 1ou
NET income S139622 three cent higher than same
The comnanvs financial condition standpoint of
promising sNet income available for dividends, ne
stated lis So SO per for the II months ended May 3ls
% cents per share the previous year. Compare this
YOU will with earnings for the 1855 or S3O2 per
share of common of about 20 cent IN stock
earning ability January 1856 For 1854 the net avail
able for common dividends 253 share Since 1888
PCo common has gone than 40 per cent IN the
net available for dividends
From the standpoint stockholders the companys earn
ability under existing rate schedules makes Montana
Power an exceedingly attractive investment According to
nrospects put out by Piper Jafay Hopwood months
Higher earnings (or MPCo) indicated, and an ade
ouate Weld is available from the recently increased dividend
Based on the preliminary report in 1888 ad-
vanced an aboveaverage 20 cent the yeaearer
level
The upward brought out the PJ&H prospectus con-
nued on through 1856 accelerated the first five
months of 1857 according to managements Report OF the
Stockholders Annual Meeting, June 49, 1857.
Net income available for dividends according to MPCo
figures currently accrung at rate of just under eight
average market value of Montana Power com
s45 per share the last year New York financial
circles consider any utility earning five and half cent
or more per wear to definitely blue chip Montana Power
according to earlier reports by COrette admitted
the bue chip back 1852 when net income avail
able for dividends was much, much lower than today.
Surely in the above facts the Public Service Com
mission will not approve another raid utility patrons pocket
such as the gas increase by granting the 19 to
per cent rate power monopoly seeks
Data cxnor4e knndod