386 CONFERENCE ON NATURAL BEAUTY 



Statements Submitted for the Record 



WILLIAM M. BENNETT.* In the State of California the public is 

 becoming more and more concerned about the appearance of utility 

 installations and facilities. The trend, particularly in new subdivi- 

 sions, is toward undergrounding. 



So far as transmission lines are concerned, while complete beauty 

 is an ideal, no way has yet been found toward a satisfactory formula 

 for apportioning costs. 



The key to aesthetics inevitably is cost. We accept the premise 

 that the general public and rate payers are aware of the problem of 

 costs and despite that fact wish to arrive at that point in time when 

 both distribution and transmission systems generally speaking will 

 be underground. 



As to costs, as a society we have learned a great deal about the 

 benefits which can be achieved through utilization of the economic 

 system. The most timely example of massive economic wellbeing 

 comes from the recent Federal tax reductions. And here may be 

 the key which will permit the realization of aesthetics in the utility 

 field and which will solve the problem of costs. There is really 

 nothing new or novel in granting a tax benefit for certain purposes. 

 For example the statutory depletion allowance represents public 

 policy to the end that incentives be provided for the exploration and 

 dvelopment of oil and gas. If this type of tax benefit, which has 

 been estimated to cost the Treasury Department $2 billion annually, 

 may be accorded for the development of oil and gas, then so also is 

 it not only possible to confer upon public utilities such a benefit but 

 in the long run may be even more socially desirable. A balancing of 

 social and economic values may indicate that favored tax treatment 

 should be channeled in new directions. This is not to say that this 

 treatment is the sole or exclusive method whereby the problem of 

 cost may be met. It should be remembered that the National Power 

 Survey projects enormous savings in the electric industry and prop- 

 erly states that these savings should be passed on to rate payers. 



Benefits to rate payers can take many forms beyond that of lower 

 electric rates and one of the permanent benefits would be that such 

 savings together with such tax incentives as may be required shall be 

 utilitized to create a system of underground utilities for the nation. 



*This is an extension of the remarks made by Mr. Bennett during the panel 

 discussion. 



