Kankakee Valley Post, Volume 19, Number 11, DeMotte, Jasper County, 11 February 1949 — Utilities To Battle Against REMC Measure [ARTICLE]

Utilities To Battle Against REMC Measure

Power Plant Sales Are Possible Under Plan Proposed In Assembly Bill Private utilities are drawing up their forces to prevent the enactment of a pending Indiana House bill which would permit the Rural Electric Membership Corporation to buy existing private or municipal electric utilities properties. It is explained by the REMC that the bill would not open the door for it to buy any utility. It would be limited to utility services lines in rural areas and in towns of not more than 1,500 population. The law now requires that such purchases be approved by the Public Service Commission and that the property purchased have a depreciated value of not to exceed SIOO,OOO. The pending legislation would permit purchases without Public Service Commission approval and remove the Ceiling on the price to be paid. It is the contention of the REMC that the Public Service Commission has no authority over financing the purchase of material and the construction of its lines. Commission approval of purchases of existing lines is not necessary, it claims, because the patrons of REMC lines are also the owners and can protect themselves. Private utilities insist that the REMC was set up on a: co-opera-tive basis to give electric service in areas w'hich did not have ££neral public utility service. The proposed law would permit REMC to acquire privately owned utilities in towns of not more than 1,500 population without restrictions. Money for such purchases would be borrowed from the Federal government.