PUBLIC OWNED UTILITY SHOWS GREAT SUCCESS
Cowles, L. A.
PUBLIC OWNED UTILITY SHOWS GREAT SUCCESS Superintendent of Electric Utilities at Rochester, Minnesota, Tells of Benefits, Savings By L. A. COWLES [Superintendent, Rochester, Minn., Electric...
...Then we have our power rates dropping to as low ajj two cents per kilowatt...
...the two electric power plants $2,503,379.50...
...Our current rate is on a graduated scale from eight cents down to four cents, and if you have an electric stove our current rate is three cents minus 10 per cent if payment Is marie within 10 days...
...The net income increased from $88,000 to $228,000 per year...
...If these plants were valued on the basis of "going values" such as would be used by privately owned utilities in valuing their properties for rate making purposes, the value of the light plants could safely be placed at $5,000,000 and the water works at $890,000, making a total of nearly $6,000,000...
...lis advantages are evident to everyone, and they become a natural function of government...
...Reasons Why Here are some of the reasons why the people of Rochester have stood by their municipal plants: With private ownership, "profits first...
...We have over 500 electric stoves on our lines, which is more than the private company in St...
...Paul has, a city of over 14 times our population...
...It has owned and operated its municipal, water plants since 1883—nearly SO years—and its electric light and power plant since 1893...
...There aw 7,000 municipally owned water works in the United States, and over 2.500 municipally owned electric light and power plants...
...And yet...
...with municipal ownership "service lirst...
...Municipal ownership of utilities, beliiK local, Is easily studied by Ihe citizens...
...And the net income per kilowatt hour sold was 1.667 cents...
...It see-ms logical to assume that any utility which Is necessary to the welfare and the happiness of (tie people should be owned and operated by the public...
...We spent $71,000 for the extension of a steam heating system in our schools and courthouses, taking in some business districts on the way...
...We mainUin $50,000 to $80,000 in the construction fund, which we hold as cash for emergency purposes and for extension of plants...
...But these are actual values...
...Low Rates Our rates in Rochester have always been from 15 to 20 per cent lower than any privately owned utility In the state of Minnesota...
...The assets of the plant have increased over $1,000,000 since 1923...
...During the five years, 1923 to 1928, the current consumption increased from 1,200,000 kilowatts to 10,208,000...
...Of this number, the city of Rochester, Minnesota, takes pride in the utilities owned and operated by the city...
...The average cost, per kilowatt hour for 1929 was 4 098 cents...
...our policy has been to maintain our rates at such a figure that we could always have sufficient funds in our sinking fund for the maintenance and extension of the plant at the maximum capacity of current consumption...
...Our business has been growing so rapidly that it is actually difficult for us to maintain our plant with sufficient capacity to meet the demands...
...This Is particularly true of light and water plants, as the entire community is dependent upon them more Ihau on any olher service...
...We have constructed a hydro-electric plant and we have earned enough to pay for this plant, which was placed In operation In 1919, and we are now securing the benefit of the foresight of those people who at that time put forth the bond issue...
...the steam heating system which has only recently been installed is valued at $72,020.69...
...lower rales and better service...
...Big Savings It Is impassible to estimate the savings to the people of Rochester by owning and operating their own utilities as compared with private ownership, but a conservative estimate would be $125,000 per year...
...We believe in and have maintained that policy with the current consumer, who benefits by the earnings of the plant...
...An Increasing Success With minor difficulties now and then and a disastrous Are that completely destroyed the plant in 1915, these plants have been an ever Increasing success...
...Today the water department has a valuation of $471,913.19...
...With the expenditure of $1,000,000 Rochester is secure for nil time...
...PUBLIC OWNED UTILITY SHOWS GREAT SUCCESS Superintendent of Electric Utilities at Rochester, Minnesota, Tells of Benefits, Savings By L. A. COWLES [Superintendent, Rochester, Minn., Electric Utilities] Tile city of Rochester, Minnesota, owns and operates four major public utilities, a steam power plant, a hydro power plant, water works, and a steam heating system...
...Profits from municipally owned utilities are returned to the citizens in...
...During all that time and through all kinds of opposition and difficulties the people of this city have stood pat on municipal ownership...
...We have covered the cost of our bond Issue und have sufficient money in our .sinking fund to take up these outstanding bonds which are not due n,i yet...
...The city can do equally well what the private corporations do for profits...
...We spent last year SI25,000 for Improvements in our plants to bring the efficiency up so we could compete with the private power companies...
...The private corporation must pay dividends to stockholders which Ik not conductive to low rates and oftnn Impairs service...
...We are in competition with private power companies and must necessarily maintain our plant at a point where we can meet that competition, of course...
Vol. 1 • September 1930 • No. 42
