The Key West Citizen

Reduction Of Electric Bills Held Unlikely In Next Year
UTILITY BOARD POINTS TO RISING COSTS OF EXPANSION

Reduction of electric rates for Key West householders and commercial firms alike is a far off and dimming hope, according to a meeting of the Utility Board of City Electric System yesterday.

Chairman of the Board C. B. Harvey, long an advocate of lower electric bills for the little and big consumer was told by Board Secretary Ernest Ramsey and by consulting Engineers R. W. Beck company that costs are mounting so that reduction is out at the present.

"I know our rates are higher than other cities," the Mayor said.

Cost of the new steam electric plant is not only the bond issue of $3,000,000 but an additional $100,000 that it has cost the city to rent two portable Diesel units to keep going until steam is ready.

The two portables were released from any possible purchase by the Board on Tuesday. They have been renting them in order to keep up with Key West's growing demand for power. Now the Board will release them to A. G. Schoonmaker on his request. The Schoonmaker firm in return will pay the $15,000 freight on the big units back to Sausalito, Cal., whence they came.

Board member Louis M. J. Eisner as usual stated that had the Board voted for Diesel units for its expansion program rather than steam, the $100,000 expense of renting interim units would not have been needed, and that the plant would be in operation now.

As it is, the steam electric plant will not be ready to take the full load of Key West's growing power customers until the end of January, A. H. Dunton, Beck engineer said.

Dunton also implied that an additional boiler and turbine unit will soon be needed to supplement the 10,000 KW plant which is costing the city $3,000,000.

Kenneth Ward of the Beck company

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company stated that consumption this winter will reach 10,000 KW which is the maximum capacity of the new plant on Caroline and Grinnell Streets.

Board members agreed that they could release one of the Schoonmaker Diesels on January 1, and the other around June 1. At that time plans for the expansion of the present 10,000 KW plant will probably have been brought to the public.

Meanwhile the upped budget of City Electric system for the fiscal year ending March 31, 1953 was approved by members. Increased expenditures offset by increased revenue have jumped the budget by $36,675. Part of this increased cost of operating the city's power system stems from the cost of fuel oil which is $1.92 a barrel plus 25 cents a barrel for transporting it to Key West by barge.

Board members approved the usual $25 bonus for all employees of the municipal electric system. They further approved a raise for Chief Engineer Whitmarsh of the old and the new electric plants. Other workers in the plant are covered by a union contract between the system and the International Union of Operating Engineers. This agreement will be discussed in its final terms at the next regular meeting of the Board in January.

The Big Pine Key electric power line will probably be completed in January it was brought out at the meeting. Present were Board members Harvey, Eisner, Ramsey and Fernando Camus. Ward, Dunton and Leonard Parks represented R. W. Beck, consulting engineers; C. A. Van Deursen and Merville Rosam the system and W. R. Cambespoke for A. G. Schoonmaker.