The people's voice. [volume] (Helena, Mont.) 1939-1969, 1961-07-28
WHAT DO YOU THINK?
By GRETCHEN G. BILLINGS

gains of others. President ]. E. Cor
cite said on the witness stand that
their oil and gas operations are not
making money. Oil and gas explora-
tions carry with them lucrative tax
deductions. There are matters like
amount allotted to expenses and even
the possibility of tax refunds.
The good faith of the Montana
Power Company is at stake in this
issue. Opponents experts believe gas
rate payers should be allowed pro-
rata share of the benefits accrued
from the consolidated income tax
returns of the company. Unless these
records are available for the experts
TO see, the blatant refusal of the
company to produce them arouses
grave suspicious in the minds of the
rate payers.
The company's attorney makes it
clear they will defy the commission
to keep from revealing them.
Profits from the giant company's
utility operations are invested in
other enterprises such as oil and gas
exploration in Canada. There is moth
ing in this that is antagonistic to
economic principles, as long as Mon
tana Power Company stockholders
are satisfied.
However, to take advantage of
their utility consumers through
manipulation of figures and re-
fusal to divulge their financial
transactions is innately wrong.
The Montana Power Company is
monopoly. They control the only
two sources of fuel for domestic use
that could easily be competitive, gas
and electricity. Their rates are set
by government agency and when
increases are granted the public con-
dennis the Commission and the Com
pany crawls away with it's profit.
The present gas rate increase re-
quest is the first in Montana to have
rate experts in opposition. If neces-
sary records for making a proper
determination are not made avail
able to them the sum total is that
the Commission puts itself in the
position of fighting the utility con-
sumers in Montana, and on the side
of the Montana Power Company.
Another issue in the case. the
basic one, of course, is how to reach
a proper "rate base" by determining
the 'fair value' of the utility.
The method of finding 'sfair value"
is not the only way to determine
rates. Because of the difficulty of
searching out the specific value of
the company plant and of separating
that part which belongs to the par
ocular operation being considered;
The myriad of factors that become in
yolved in this manner of rate-making
all to the dertiment of the consum-
er pocketbook should soon make
t evident new methods of rate MAX
ng must be sought.
One of these methods is the pro-
cess of figuring how much money
the company makes, how much it
needs, and proceeding from there
as to how much the rate payers
should contribute to meet those
needs.
The utilities fight this method,
'articlarly in time when costs are
'oing up. But unless some more
ealistic manner of determining rates
5 devised than is being used at the
resent time I submit the motions
+ rate making become meaningless.
+ 4
can create contained riot by
the Public Service Com
mission be abolished. But riot or no,
contend they are not serving the
urpose for which they were Gre
ted. Montana needs some public
Utility districts and some public
over.