The Sidney herald., 1958-01-30
81, 900, OOo TO COMPLETE
NEW SIDNEY PLANT IN 1858

Montana-D Dakota Utilities Co.
announced last week that one OF
the largest construction budgets
in its history, totaling $10,250,000
has been tentatively approved
for 1853. Cecil w. Smith. MDU
president, stated that 1858 ex-
penditures will maintain a five
year annual average of more than
S10,000,000 invested by MDU to
provide new electric and gas
facilities to serve its customers.
During the past five years the
company has expended $5l,574,0O0
for new construction. This reflects
substantial growth in the upper
Missouri basin area served by
the company. Montana's share
of the total five-year construction
outlay was $15,376,896. Smith
pointed out that SO to $50 of
new construction costs is paid
out for labor.
The important projects COM
pleted or underway during the
last five years include the power
plants at Sidney Mont. and Man
dan, N. D., gas compressor sta
tons at Hardin, Mont, and Dick
inson, N. D., the extension of
gas service from Williston, to
Minot, N. D., and major addi-
tons to the company's electric
transmission and natural gas pipe
line systems throughout its SER
vice area.
Smith said the largest item in
this years budget is $4,900,000 to
complete the $4,000 XIV electric
generating plant under construc-
ton on the Yellowstone river
near Sidney, Mont. The balance
of over $5,000,000 will pay for
new facilities to improve service
for numerous gas and electric
extensions needed to provide for
load growth. Approximately
$5,950,000 will be expended in
Montana during 1858.
To carry out the construction
program during the past five
years the company sold $33, 300, 900
of securities to the public, con-
sisting of $12,000,000 in First
Mortgage bonds, $10,000,000 in
Convertible Debentures, $4,000 900
In Preferred Stock, and $780, 900
in Common Stock, Smith said.
The balance of the funds has been
provided through the sale of iso-
lated properties and from retained
earnings and depreciation.
Smith said buyers of MDU
securities represent all classes OF
investors and the company has
stockholders in every state in the
union and in seven foreign coun-
tries. He stated that MDU bonds
are held principally by life insur-
ance companies and other instltu-
tional type investors. Smith point
ed out that to maintain a con-
slant flow of funds for new con-
s~truction, it is absolutely neces-
sary to keep the company's credit
at the highest possible level.
Smith also stated that the COM
pany must commit itself on con-
struction, particularly in the case
of large power plants, electric
transmission lines, and pipe lines,
from three to five years in ad-
vance. A typical power plant
such as the Heskett station at
Mandan, N. D., or the plant now
under construction at Sidney,
Mont. requires a minimum of
three to five years in advance of
actual construction.
1--WE are proud Of the part
Montana-Dakota has played in
providing service needed because
of the extraordinary growth and
development of the upper Mis-
souri, basin area. In doing this,
our company has more than dou-
bled its investment in the past
eight years. Carrying out the ex-
pansion program has been a real
challenge to our organization. We
have always been able to meet