The Fight to Cap Power Rates
Cities across the Pacific Northwest clash with Pacific Power & Light in a landmark valuation hearing.
The story, cleaned up
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The legal battle, the outcome of which is to determine whether or not the Pacific Power & Light company is to be permitted to continue its present charges for light and power in the state of Washington, was started in North Yakima Monday morning when a hearing before the state public service commission was begun to fix the valuations of the company’s properties. The hearing is the most important one ever brought before the commission and the entire week will undoubtedly be given to the taking of testimony. Attorney Harry L. Wilson represents 11 cities and towns. Associated with him are City Attorney Shumate of North Yakima, City Attorney Fristoe of Prosser, City Attorney Rysek of Pasco, and M. M. Moulton of Kennewick, who represents the power users of the White Bluffs district. It developed early in the hearing that the chief point around which the fight will revolve is whether or not the company shall be allowed to place a valuation on its water power rights. J. Hagenah of Chicago, the company's engineering expert, values the sites at $700,000 while F. S. Burroughs, the state's chief engineer, maintains that the water power rights of the company represent no investment and therefore cannot fitly carry any valuation.
“The chief point around which the fight will revolve, is whether or not the company shall be allowed to place a valuation on its water power rights.”
Public utility rate hikes and the valuation of water rights remain central to energy politics in the Columbia Basin today. The 1914 debate over whether 'natural' resources like river flow should be capitalized for rate-setting mirrors modern tensions regarding infrastructure investment versus public benefit.
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