Journal of electricity, power, and gas . ensa-tion required under the Forest Service standard con-tract and under the new joint contract, it must be re- March 28, 1914.] JOURNAL OF ELECTRICITY, POWER AND GAS 273 membered that the former requires payment of feesfrom the beginning, while the latter waives all com-pensation for the first ten years. For this reason Ihave added to the first ten years actual accumulatedfees under the Forest Service permit, compound inter-est at six per cent upon money so invested up to thetime when payments begin under the other actual payment of fees du
Journal of electricity, power, and gas . ensa-tion required under the Forest Service standard con-tract and under the new joint contract, it must be re- March 28, 1914.] JOURNAL OF ELECTRICITY, POWER AND GAS 273 membered that the former requires payment of feesfrom the beginning, while the latter waives all com-pensation for the first ten years. For this reason Ihave added to the first ten years actual accumulatedfees under the Forest Service permit, compound inter-est at six per cent upon money so invested up to thetime when payments begin under the other actual payment of fees during the first ten yearsamounts to five dollars and fifty cents ($) per )and when compounded at six per cent amounts toseven dollars and twenty-one cents ($) per ,thus adding a going value of this amount to the cap-ital investment when compared with the other con-tract. To make the two fees comparable it will be neces-sary to add to the former an annual sinking fund as-sumed to earn three (3) per cent interest and suffi-. 10 ZO 30 40 50 SO 70 80PercenT of Deve/opect <S/Te Co/jac/Ty cient to replace the first ten (10) years fees during theremaining forty years of the life of the permit. Whatmay be designated as the effective annual fee for theForest Service permit will then be constituted as fol-lows: Actual annual fee per $ Six per cent of $ Forty year 3 per cent sinking fund to replace $ Total $1,525 On the accompanying diagram the vertical scalerepresents the annual fee in dollars. The horizontalscale represents the developed proportion of the sitecapacity and one curve is drawn for each value of theaverage selling price of energy as defined by the recentcontract. These curves should really all be steppedlines as shown in three instances, since the same rateapplies from 60 to 70 per cent, 70 to 80 per cent, etc., of developed site capacity. They are drawn as curvesthrough 65. 75 per cent, etc., to avoid confusion oflines. It is a
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Keywords: ., bookauth, bookcentury1800, bookdecade1890, booksubjectelectricity
