The Price of Power in the Valley
A utility company disputes the state commission’s push to lower energy rates, citing shrinking returns.
The story, cleaned up
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The company contends that a decrease in rates will not produce an increase of business. This was brought out in the rate hearing when a statement was made showing the comparative earnings for the city of North Yakima for 1911, 1912, 1913 and 1914. Reductions were made in the rates and in 1912 the earnings were approximately $175,000. The next year there was a slight increase, the earnings being about $176,000, and by the end of 1914 they had increased to $190,000, still being $16,000 less than they were in 1911. The company believes from this experience that any hope it may have of securing additional business by reducing rates is decidedly poor. The commission has also criticized the company for discriminatory rates given to large irrigation customers. The power company contends that low rates to these large users—such as the Yakima Valley Transportation company and the Walla Walla Valley Railway company—are justified because they are wholesale users operating 18 hours a day, providing a much better class of business than short-hour seasonal users.
“The company believes from this experience that any hope it may have of securing additional business by reducing rates is decidedly poor.”
Debates over irrigation power subsidies and utility rate structures remain central to the economic identity of the Tri-Cities today. The tension between utility monopolies and public utility districts regarding 'fair' rates echoes the same civic arguments made over a century ago.
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