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~ , ~1C4> "l:r' -' c\! c THE EFFECT OF POWER RATES IN LOS ANGELES ON INDUSTRIAL DEVELOPMENT IN UTAH 6.7.38 Development in Los Angeles Beneficial to Utah The lowering or electric power rates in Los Angeles would result in very direct benerit in the mining industry, including ore reduction works and in agriculture and could not result detrimentally to Utah. This is true because: (a) The greater the industrial development in Los Angeles, with resultant general community de- velopment, the greater the demand for the' products of the mines or Utah and, (b) The greater such development in the metropolitan area or Los Angeles and the resultant mining industry of Utah, the greater demand for the products of Utah's agricultural reclamation projects in both places. Lower Power Rates in Utah Feasible It is selr-evident that the lowering or power rates in Utah would benefit all industry through larger margins of proritj and carerul studies, copy of which Is attached, by engineers of the Bureau of Power anq Light quite conclusively show that the cost of steam power at Midvale, Utah, as a center. of distribution would be lower than the cost or Boulder Dam power delivered at Los Angeles, assuming the third circuit con- tract and the proposed Boulder Dam Legislation was in effect. Mining and Production of Concentrates Not Transrerable It goes without saying that if substantially cheaper power were made available, it would be of great value to the state of Utah ror the reason that it would contribute materially to the lowering of overall costs of mining, milling and produc- tion or concentrates. There is no chance through the lowering of power rates in Los Angeles or elsewhere of materially influenc- ing the transfer of mining and milling operations as at present conducted in Utah, to the city of Los Angeles. The reason for this is the prohibitive cost of shipping crude ores any great distance from the Inter-mountain district due to the low value of such ores, as well as the high percentage of waste material involved. Those materials which, for economic reasons, now go to Central and Eastern points for final refining, could and might be processed in Southern California as an outcome of the proposed lower power rates.