2. Low Voltage-1 H. P. to 50 H. P.

Charges.

(a) Demand: $2.50 per month per contract H. P., which charge entitles consumer to use during such month 30 kw. hr. for each H. P. of contract power.

(b) Energy: 7.5 cent per kw. hr. for the next 50 kw. hr. of monthly consumption.

5.5 cents per kw. hr. for the next 250 kw. hr. of monthly consumption, 3.5 cents per kw. hr. for the next 750 kw. hr. of monthly consumption. 1.2 cents per kw. hr. for all excess monthly consumption.

Discounts.

Term: 5 per cent for a contract of not less than five years; 10 per cent for a contract of not less than ten years.

Prompt Payment: 5 per cent if paid within the discount period.

Seasonal Service.

Applies to Low Voltage Schedules 1 and 2.

When contract is for seasonal service (i. e., irrigation, refrigeration, beet dumps, canneries, pea viners, etc.) net minimum monthly payments per contract H. P. for at least three (3) months shall be guaranteed as follows: $4.25 net per contract H. P. per month for three months service or less. 4.00 net per contract H. P. per month for more than three months service, but not exceeding four.

3.50 net per contract H. P. per month for more than four months service, but not exceeding five.

3.25 net per contract H. P. per month for more than five months service, but not exceeding six.

3.00 net per contract H. P. per month for more than six months service, but not exceeding seven.

2.75 net per contract H. P. per month for more than seven months service, but not exceeding eight.

2.60 net per contract H. P. per month for more than eight months service, but not exceeding nine.

2.45 net per contract H. P. per month for more than nine months service, but not exceeding_ten.

2.35 net per contract H. P. per month for more than ten months service, but not exceeding eleven.

If service should be disconnected for any reason before the expiration of the period mentioned in the application for service, consumer will be deemed to have taken service only for the period dating from the date service was begun to the date of disconnection, and upon disconnection the final bill shall be adjusted to the minimum guaranty for that period, but in no case less than three months.

Direct Current Power.

This schedule is for direct current power service from existing circuits at 220 and 440 volts, for passenger elevators only, and is applicable to all service formerly rendered to consumers under Schedule No. 36, and said schedule is hereby found to be reasonable and just as to each of said consumers.

Charges.

(a) Demand: $3.00 per month per contract H. P., which charge entitles consumer to use during said month, 40 kw. hr. for each H. P. of contract power.

(b) Energy: 7 cents per kw. hr. for the next 50 kw. hr. of monthly con

sumption.

5.5 cents per kw. hr. for the next 250 kw. hr. of monthly consumption. 3.5 cents per kw. hr. for the next 750 kw. hr. of monthly consumption. 1.5 cents per kw. hr. for all excess monthly consumption.

Discounts.

Term: 5 per cent for a contract of not less than five years; 10 per cent for a contract of not less than ten years.

Prompt Payment: 5 per cent if paid within discount period.

Relationship to Case No. 230.

The relationship between this case and case No. 230 [P.U.R.1921B, 827] has been discussed heretofore. In case No. 230, the Commission found that the special contracts held by certain customers of the Power Company were discriminatory and preferential in favor of said customers, and, to the extent that they were below standard schedules, were a burden upon the power consuming public in general, and the said special contracts were ordered modified as to the rates, rules and regulations specified therein, and were placed upon standard schedules of the Power Company which were open to the public generally.

If these special contracts had been continued in effect, it would have been necessary, in order to provide the Power Company with revenues shown to be needed to enable it to continue giving adequate service to the public generally, that power consumers not enjoying special contract service pay very much higher rates than are herein found to be reasonable, thus placing the total burden of the increase upon the customers already paying highest rates. The rates hereinbefore fixed for the various classes of power users are intended to be applied to all power users of the respective classes, including the special contract holders.

It is not intended by this order to finally pass upon or dispose of the six special contracts held by the following companies and persons:

Desaret News, Hotel Utah, Judge Mining & Smelting Company, Salt Lake & Ogden Railroad Company, Salt Lake Pressed Brick Company, Progress Company.

Jurisdiction is retained by the Commission over the issues presented in the foregoing special contracts, for the purpose of further investigation, consideration and decision of the Commission, as indicated in case No. 230, supra.

Findings.

The Commission, therefore, finds the facts to be:

1. That the financial condition of the applicant, as shown at the hearing, is such as to require increased revenues from its operations in order that it may be enabled to set up an adequate depreciation reserve, maintain its credit, and to enable it to cbtain the capital necessary to meet the needs of the public for service.

2. That the rates provided in the power schedules of the applicant, now on file with the Commission and in effect, and particularly in Schedules Nos. 36, 37, 38, 39, 40, 41, 42, 43, 45, 46, 47, and 54, are, on the whole, unjust, unreasonable, and insufficient. to yield the cost of service, and do not provide reasonable and sufficient revenues for the service rendered to consumers under said schedules, which schedules will be canceled and set aside, and superseded by the respective schedules heretofore in this order found to be reasonable.

3. That the time required for physical valuation of the property of the applicant, and the expense involved in such valuation, would be such that the granting of relief cannot be delayed pending such physical valuation, and the increased rates herein prescribed shall be effective until such valuation is made, unless otherwise ordered by the Commission.

4. That applicant should, at as early a date as practicable, make a physical valuation of all of its property, segregating physical values so as to reflect, as nearly as may be, the investment necessary to serve the various classes of consumers; and, pending a hearing and finding thereon, the said applicant shall be permitted to put into effect the rates and charges hereinbefore prescribed and set forth, for the respective services to which they are applicable, and to receive and collect for its services the revenues derived from the application of said rates and charges to the services rendered its various power users. Said rates and charges are hereby found to be supported by the evidence, and to be just and reasonable for the service rendered.

5.

That as to service rendered to holders of special contracts

Covered by the final order of the Commission in Case No. 230, to

which

contracts the application of the schedules herein pre

scribed will result in any lower billing than the billing under the applicable standard schedules in force and effect at twelve o'clock noon, October 22, 1920, the Power Company shall recalculate bills for service from 12 o'clock noon, October 22, 1920, to the effective date of this order, and refund to the consumers any excess of billing charged or collected by the Power Company under said standard schedules over and above the amounts which would have been charged or collected had the schedules herein prescribed been in force and effect from and after 12 o'clock noon, October 22, 1920.

6. That the Power Company should set up a depreciation reserve fund on its total depreciable property, computed upon the basis of the Commission's finding herein of a proper allowance for depreciation on the Bear river system.

7. That the general rules and regulations of the Power Company on file with the Commission, amended as shown in applicant's Exhibit No. 22, and modified and changed as set out in applicant's Exhibit No. 23, and as further modified by proposed changes of rules and regulations shown in applicant's Exhibit No. 12, in so far as they are not inconsistent, or in conflict, with the provisions of this order, or with stipulations entered in this case, may be filed as rules and regulations governing applicant's power service from and after the effective date of this order.

8. That the schedules of rates and charges herein prescribed, and the rules and regulations, amended as hereinbefore provided, may be made effective on not less than ten days' notice to the public and to the Commission.

An appropriate order will be issued.

Joshua Greenwood, Henry H. Blood, Warren Stoutnour, Commissioners.

Note.-Return.

1. In general, 329.

11. Consideration of operating expenses:

a. In general, 329.

b. Payments to holding or parent company, 330.

e. Charges to depreciation, 330.

III. Factors to be considered in determining reasonableness:

a. In general, 330.

b. Past and future earnings, 331.

c. Character of service, 332.

d. Efficiency of management, 333.

IV. Emergency relief, 333.

V. Reasonableness of specific amounts, 333.

I. In general.

In Re Wauwatosa Gas Co. (Wis.) U-2287, March 26, 1921, it was held that in estimating revenues under a proposed rate schedule, amounts obtained from forfeited discount and by the application of a minimum charge, should be considered.

II. Consideration of operating expenses.

a. In general.

In Wallace v. Northwest Light & Water Co. Case F-62, Order No. 751, Jan 31, 1921, the Idaho Commission holds that interest payments on bonded indebtedness are not properly chargeable to operating expenses.

In Re Lafayette Service Co. No. 5863, Feb. 25, 1921, the Indiana Commission held that a coal consumption of 9.19 pounds per kilowatt hour in the manufacture of electricity, was an excessive item of operating expense.

In Re Indianapolis Water Co. No. 5798, March 21, 1921, the Indiana Commission authorized a water company to recoup the amount of local taxes for the previous year, which had not been contemplated in a previous rate proceeding, and the company was allowed to amortize this amount over a period of five years.

In Re Citizens Teleph. Co. Case No. 1781, March 30, 1921, the Missouri Commission refused to allow as an item of operating expenses, interest paid on bonds and notes chargeable against the plant account, stating that just and reasonable rates are determined on the reasonableness of the return on the value of the property devoted to the service of the public after providing for all just charges to operation and depreciation, and to include interest on outstanding indebtedness chargeable against such property, results in the exhibit reflecting an allowance, not only on such value of the property, but also on the owner's nonequitable interest therein.

In Re Black River Falls Municipal Electric Plant, U-2309, Feb. 16, 1921, the Wisconsin Commission held that new construction and additions to property should not be paid from current earnings but should be charged to capital.