11-22-1932 VCM SPECIAL - Laserfiche WebLink

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e The situation in Elk River is not ~#~~unlike others in the state of kinnesota with the exception that in this case the Power & Lieht Co, has a fr'anchise which still htE about seven years to run, A study of the last rates submitted would indicate that they are in line with those charged b~j the Northern States Power Co, in communities of about the same size with exception that the Northern States Power Co, includes special water h~ating and other rates, These rates are not as low as those obtained in other' commUni ties in the state which are opera 1,ing their own public utili ties, nor are they as low as ~hose of some of the communities which are buying current wholesale and redistributing it, It wood seem , theref8~E, that these rates should be scaled down to a point where they would appreximate the rates which the Village would be in a position to apply should they engage in the operation of a public utility, We have had assurance from outside parties that they would be willing to go into Elk River and operate a plant in competition with the present owners or sell ~;ou whole_ sale that you ~ight redistribute in the Village, Should you enter in an agreement with another powEr company to furnish energy in Elk River they, of course, would have to carry the burden of competition with the present Co, but ~rou could approve for thema franchise whim would contain clauses much more satisfactory to ~TOU than .. the franchise with the preuent company, The second arrangement is covered in a section of tht r~port ~howing operaition figur~s where curI'~nt'is purchased WhOlesale and iis!;r buted retal.l by ~roursel:r~s, b oldoThe last alternate tOtvonside~ is the desi~nin~ and , Ul. l.ng a power plant ror he man~.actu~l.ng or rou own electricity, Comparatively recent developments in Diesel engines have brought them to a point of efficiency and lastm- ing qualities which give them preference over any other type of power excepting exceptional cases of water power, for communities of your size, We,therefore,h~ve prepared in considerable detail plans and estimates of the cost of constructing a distri_ bution system and white way lighting system with a Diesel engine power plant and have set up operating statements of anticipated earnings, In general, yOU!' problem consists of det el'mining the best method of procedure, This is es~entaillyan economic problem and should be determined by a~plying economic princi:p#les, That there is a question in the minds of man~ citizems in Elk River as to whether they are being served to the best advantage by their electric light and power utility is strongly evidenced in the "action of the Council in invest_ i~ating the matter, The question has recurred time after ti~ wl.th other communities for more than thirt years,From my con~ tact with Elk River, I feel that everyone concerned is in_ terested in an early and stisfactory solution of this prOblem and the best interests of all are to be served by a fair and unprejudiced consideration of the many ramifications of the :problem, e e