The people's voice. [volume] (Helena, Mont.) 1939-1969, 1958-03-07


by the city government so there ar
no collection costs. This is differen
from plant supplied by the compan.
in order to sell electric power.
a. $7,715,01s Bird Steam Plant
Protestants believe the evidence
shows this steam plant is not needed
and should not be included in the
rate base properly used and usefu
for the consumer, because the plant
was not operated from about yeal
after it was built dedicated Oct. 6
1851 until approximately the time
this rate increase was contemplated
The transcript shows that this steam
plant was run in 1857 and is supposed
to run for most of 1858 while the
company dumps surplus power to the
Pacific Northwest area.
This would not be so bad except
it costs 6.5 mills to produce power
at the steam plant and the power
is sold to the Pacific Northwest
at 2.5 mills. This will be a hard
argument to swallow in February
of 1858 when Cochran Dam will be
in production. Cochran Dam is in
a position to supply power to Bill
lings and thus relieve any power
shortage.
Furthermore, one might wonder if
there really is power shortage. The
Company's capacity is 611,0OO kilo-
watts and the peak load that the
Company has ever been called upon
to deliver is $4,000 kilowatts.
S. 100000 Distribution System
Economies. The practice of sharing
poles with the telephone company is
becoming more and more prevalent.
The distribution system only, known
as poles, towers and fixtures is in
GUIDED at original cost as $6,715,486
and at a reproduction cost new of
BIZ, 444, $50. This doesn't include the
cost of wire or other distribution
facilities. If the Company's plant
we're to be reproduced, surely the
.ost OF, the poles could be cut almost
n half by being conservative.
6. $4,000 Yellowstone Park Fa-
ilities. The new transmission lines
n Yellowstone Park would be en-
irely in the State of Wyoming. But
he Yellowstone Park Service out
ide the State of Montana is included
n the Montana rate base. This should
bviously be dropped from the rate
ase.
z. $4,000 depreciation. Mr.. Woy
aid the power company board of |
irectors had included this much ad-
itional depreciation as an expense
I 1856 above Woy's figure of actual
expectation for that year. A board
f directors should not be allowed
, arbitrarily raise the depreciation
Expense by $4,000.
8. $29, 4O2.77 Pacific Northwest
over expenses. This was charged to
eneral expense for the year 1856
5 the sums spent by Montana Power
ompany for it's interest in Pacific
northwest Power Company. Since
lese sums were spent outside the
tate of Montana on projects out
de the state they are not properly
lcluded as expenses in this area.
9. $4,000 rate making expenses.
he Company did not amortize the
tie making expenses for this case
yer period of time Give years con-
dered fair).
10 Steam plant expenses for rea-
ms given previously should be ,,
'opped.
IL. The ALLEGATION factor in admin .
tration between the gas and the
ectric business will change. The gas .
location will be greater in future
.ars. 1t should be considered.
Continuing excerpts from pro-
estants brief: There is no present {
iced for an increase in Montana i
'ower Company rates. The Mon n
ana Power Company at present is 8
n a healthy condition. V
Book value has risen 117.4@S in a
e last 10 years and stands at an all d
ne high. Prices of common stock il
We risen since 1949 when it was Il
st put on the public market. from
z u to SAT, and earns 1920 on a
ok equity as of October, 1857. C
yone who will stop and consider C
moment that Montana Power stock G
kes that return on book equity
| not argue with the proposition u