AZ vs. CA:02 California Exhibits, Vol II; Nos. 58-113A

page 26

-26- The Yuma Water & Light Co. uses about 200 H.P. at an annual cost of development of approximately $22,000. It will cost us to develope and transmit this power to Yuma, 5/2 miles; Developing machinery at El Rio for 200 H.P. $ 6,000 Electric transmitting plant, 15,000 $21,000 The wear and tear on machinery of this description is light, and the increased operating expenses of the Co. chargeable to the Yuma plant will be very small. $2,000 per year should certainly cover everything. On this basis, a charge of $13,000, per annum to the Yuma W. & L. Co. will pay 50% net on the cost of the plant, and the proposition would be one that they could not refuse. In the excavation of the heavy cuts below El Rio, I estimate that it will be necessary to move 458601 cu. yds. of material. The original classification and estimate of cost, using ordinary methods, of excavating, was, Earth, 168,331 cu. yds. at 12.5 cts. 21,041.37 Cement, 290,270 " " " 40 " 116,108.00 $137,149.37 By using the El Rio power, I estimate that these cuts can be removed at a cost of 8 cts. per yard, or a total of $36,688.08; this represents a saving of $100,461.29. In this figure of $36,688, I consider the depreciated value of the hydraulic or other excavating machinery, but do not take into account the original