Kenai City Council Splits on Power
Question After Long, Heated Debate
The Kenai City Council agreed
to disagree Tuesday night, when
after heated debate, members
split 3 to 3 on a motion to con
sider a franchise proposed from
Kenai Power Corp., a concern
which has supplied power to
Kenai for the past 11 years.
Final result of voting was to
invite franchise proposals from
both Kenai Power Corp., and from
Peninsula Power. The latter is a
group proposing to form a com
pany and build a new transmis
sion system. Bo:,h concerns seek
to supply Kenai with electrical
power.
In debate on the motion, it was
brought out that if the City Coun
cil accepted any franchise for
consideration it still has to be
presented to the people for a
vote.
The open meeting was attend
ed by approximately 50 persons
interested in power problems.
Discussion was open to the pub
ic and heated comments, both
pro and con, came from the floor
as well as from Council members.
Prior to the open meeting,
Council members met last Mon
day with Frank Rowley, whose
Kenai Power Corp., has supplied
power to Kenai residents for
Alaska Rural
Housing Loans
Available Now
The Alaska congressional dele
gation has been advised by the
Department of Agriculture that
the Farmers Home Administra
tion housing loan program is to
be effective in Alaska immediate
ly. It will not be applied in other
states until October 15.
Congress recently implemented
an expanded program by enact
ment of legislation, Public Law
87-70, the housing act of 1961.
Provisions included are to the
effect that rural housing loans
may be made to farm owners,
and as well, to owners of non
farm tracts in rural areas and
small rural communities that
have populations of 2500 or less.
Funds may. be used to finance
adequate but modest rural dwell
ings. and essential farm service
buildings. Loans are made only
to applicants unable to finance
these improvements with their
own resources or with credit
from other sources.
Information concerning regu
ations and procedures is now
available a£ the office of the
Alaska state supervisor of the
Farmers Home Administration,
A. Q. Stine, in Palmer.
Completes Summer School
Leon Stout of Seldovia was
among more than 175 students
who recently completed a six
weeks summer session at the
University of Alaska, located
near Fairbanks at College.
years before Kenai was incorpor
ated on May 10, 1960. Since in
corporation, the City now has
power to demand a franchise if
it so desires. In that meeting,
the Council indicated that if Row
ley could bring Kenai Power up
to standard and could operate an
adequate power system for the
growing and already much ex
panded city, that his franchise
proposal would be considered.
Council members also conferred
with representatives of Peninsula
Power last week and listened to
their proposals as presented by
John R. Connally, attorney for
the group. It was decided that
an open meeting should be held
anil both offers be brought before
the public for hearing.
Peninsula Power has offered to
come into Kenai, to build a trans
mission line and to buy power
(from an unnamed source); to
supply the city with power (at
an unnamed rate); and later to
sell transmission lines, generators
and other equipment to the city
after construction. The city then
would own and operate its own
power system.
According to the proposal, if
purchased within a 5-year period,
the city would pay cost of con
struction plus 15 per cent. If
purchased after 20 years, cost to
the city would be construction
cost less 50 per cent. Life time
of generators such as would be
used is generally regarded as
approximately 30 years. Rates
for service during the time power
was supplied to the city by Pen
insula Power would be set by
the Public Utility Commission of
Alaska.
Rod Franck, public relations
representative lor Kenai Power
Corp., presented Rowley’s report
and proposal at Tuesday night’s
open meeting.
Kenai Power Corp., within a
few weeks, will be in a position
to offer four times the power it
now provides, Rowley said. Kenai
Power Corp., in conjunction with
Consolidated Utilities, Ltd., (a
private business manufacturer of
electrical power which is not in
the transmission and distribution
business), now has a 20-year
contract which in effect provides
for CUL to furnish all electrical
power demanded by Kenai Powrer
during term of the contract. The
two concerns have equipment and
facilities with a total valuation
of $345,000 to $400,000 at the
present time . . . and with prac
tically no indebtedness, Rowley
said.
The expected increase of 33
per cent more electrical demands
this winter will more than be
met by a 400 per cent increase in
generation capabilities, according
to the report. Construction is
progressing at the Consolidated
Utilities, Ltd., new plant site
located adjacent to the n e w
Union-Ohio Sterling Unit gas
well and 1300 kw of power will
be available within 90 days. Ke
nai Power Corp. is in the pro
cess of acquring neccessary poles
and transmission lines to con
nect the new plant site and will
be ready for the power when it
is turned on. Power available
will be increased from the pres
ent 550 kw to -2000 kw.
Kenai Power owns no.stock in
Consolidated Utilities, Ltd., nor
does Consolidated Utilities own
any stock in Kenai Power Corp.,
of which Rowley is president.
In review of the rehabilitation
program as it now stands, Row
ley said, the rehabilitated line on
Birch Drive is now in first class
condition, a new line has been
extended to Standard, Kenai
Packers and Walker’s subdivision
as well as a new line on Home
site Loop and on Wildwood Roads.
The line from plant to airport
was rehabilitated last fall. This
rehabilitation and meeting new
growth needs amounted to about
$20,000 in the last year.
In addition, an immediate ex
penditure of $30,000 for new dual
transmission and distribution line
from new plant site to Kenai,
current construction in progress,
will open up at least 7 miles of
new service area, Rowley added.
In addition, Kenai Power has
allocated an extra $20,000 for
the coming year for additional
growth and replacement as need
arises. Additional capital needs
are unlimited provided Kenai
Power Corp. has a service agree
ment with the City of Kenai,
Rowley said.
The next meeting of the Kenai
City Council will be another open
session at 8 p.m. on Tuesday,
Sept. 12, at the fire hall. Princi
pal items on the agenda are
proposal to build a city jail, a
dog ordinance and property tax
exemption for churches, according
to Frances Torkilsen, city clerk.
GAS...!
Water Heaters
Wall Heaters
Caloric Ranges
Quaker Heaters
Radiant & Forced Air
—ooo—
FTYQ
APPLIANCE
Authorized Coleman Mobile
Home Service Center
Soldotna Phone 262-1301
Store hours: 10 a.m. to 2 p.m.
and 5-7 p.m.
Alaska Leads
The increase in numbers of
children of school age (5 to 1?)
will be greater in Alaska than in
any other state of the Union be
tween 1 J>60 and 1965, according
to projected estimates made by
the Office of Education and just
released. The Alaska increase in
the period is estimated at 3b.4
per cent, compared with the pro
jected national average of 14.3
per cent. The 5-17 age population
in Alaska was 54,703 in 1060 but
is expected to reach 73,000, in
round figures, by 1965.
A recent oil land lease sale
brought in more than the price
the United States paid for all
Alaska.
Cordova Airlines Announces!
NEW LOW RATES
Soldotna to:
Anchorage.$6.00
Kasilof.$3.00
Ninilchik.$4.00
Seldovia.$8.00
Port Graham.$9.00
(One-Way Passenger Fares, Plus Tax)
Freight Rates Reduced 20% to 30%
You Are Invited to Visit
Reta Waldron and Peggie Steinauer
of
Kenai Business Services
(Formerly Waldron Business Bureau)
At Their New Location
in the KENAI TRADE BLDG.
Suite 203-205
and use their
EXPANDED SERVICES
Complete Business Service
for the Kenai Peninsula
ACCOUNTING — PAYROLL — TAXES
TYPING — DUPLICATING — SECRETARIAL
TELEPHONE ANSWERING — NOTARY
“Your Office or Ours”
PICK-UP and DELIVERY SERVICE
Phone 283-7507
Kenai
Coming Soon - The GRAND OPENING of
(Formerly A&D Market)
Soldotna
OPEN FOR BUSINESS NOW
Phone 262-4631