The Organized Farmer

St. Paul Plans On Constructing Its Own Municipal Light And Power Plant
In the city of St. Paul, the franchise or right to use the streets of that city for the erection of poles and other privileges by the Northern States Power Co., has expired and the city has wisely decided to leave the question of granting a 2 year franchise, to the people, by either calling a special election for that purpose on January 12, or wait until the general city election is held in May.

During the mean time the Independent Voters League has inaugurated a movement and is now making a study of the advisability of constructing a light and power plant owned and controlled by the city of St. Paul.

Like many other cities and villages in this state many of the people of that city have become dissatisfied and there has been during the past few years more or less a continual controversy between electric light and power patrons and the company.

It is estimated from reliable sources that with a municipal plant electricity can be reduced 15 per cent from the present prices and $2,000,000 profits turned into the coffers of the city per year.

Engineer's Report

H. I. Frisbie, mechanical and electrical engineer with the Engineering Service Company has made the following report.

'For the benefit of the public and due to the controversy between the City of St. Paul and the Northern States Power Co.,' Mr. Frisbie's letter states, 'I am herewith submitting figures on a municipally-owned plant with data on electricity now being sold by the Northern States Power Co.'

'A municipally-owned plant will serve the city just as efficiently, if not more so than the present Northern States Power Co., and in doing so, save the city more than $2,000,000 a year which may be used to advantage in reducing taxes.'

This saving, Mr. Frisbie contends, will accrue from reducing rates 15 per cent, saving $724,500, and from profit of $1,335,000 annually to the city from the city-owned plant. This total saving he estimates at $2,059,500.

'The plant would be self-supporting,' he continues, 'and the bond issue retired in 20 years (the contemplated life of the new Northern States franchise) and at the same time would net the city a handsome income.

'Reasonably cheap commercial and industrial rates could be established to promote the growth of the commercial and industrial interests in St. Paul, and this load would no doubt be doubled in a few years with many beneficial results to the city.'

Cost Estimated

Mr. Frisbie's estimates of the cost of the municipal plant project submitted to the League chairman were:

Plant $9,000,000
Land for site 500,000
Transmission 250,000
Distribution 6,500,000
Interest (during construction) 1,750,000
Engineering 400,000
Supervision 150,000
General overhead 1,000,000
Total $19,550,000

Cost of the product per year he estimated at:

General overhead $1,250,000
Operating costs 1,500,000
Total $2,750,000

Revenue from the proposed plant at the reduced rates to consumers was estimated at $4,085,000, from which would be subtracted the $2,750,000 costs of production, giving a profit to the city of $1,335,000.