The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-08-19

waiian Electric Co. were appointed to
report at our annual meeting upon the
question of reduction of rates. They
| recommended at that time that the old
! rate be continued. In that report they
included an extract from the Elec-
trical Review" of Jan. 4, 1902, entitled
Some Averages on Electrical Costs
and Charges" In this article it was as
/ suined that the price of fuel was a fair
( Indicator of the basis of charge, and,
from figures which were obtained from
several central stations in every state
/ in the Union, the average rate per lHllo-
watt was about 4 per cent of the cost
per ton of coal. The cost of our coal
averages approximately $500 per ton
delivered at the plant, per cent or
which amount would indicate that In
Honolulu the rate should be &c per
kilowatt to conform to the average
+ price In the United States. This rate Is
too high, and it will be necessary Tor
us to establish base rate at less than
( this price.
/ The question of an equitable and
profitable rate for electricity is one
which has agitated central station men
probably more than any other question
! involved in management. This Is large
Iy due to the fact that the production
and sale of electricity differs from all
other business, in that an electric COM
pany must manufacture its product
only as required, and electricity cannot
/ be commercially stored. The customer
will not wait for his supply, ana can
not be prevented from taking 1t when
required. 1t is therefore necessary that
! the capacity of the company's plant
and distribution system must be gov
erned by the maximum demand 10 De
made upon it at any time. Inc oper-
ating expenses of a station are not oe-
pendent upon the output of the statloh'
81 80
management in the United states Is
/ that 20 per cent Of the expenses are not
] Influenced by the output, and that a
station sells only from 10 to 80 per cent
of the amount of current they are ca
pable of generating. In other "oruS,
( the plant lies idle from 20 TO 30 per cent
/ of the time From the nature OF the
( business and the demand it is impossi-.
bla to make the load uniform through
out the day and night. The actual con-
Editions are that an electric station mas
a heavy load for one or two hours uuI
i ing the evening and the balance OF the
time il is running greatly under-loadeu.
The period of heavy load IS usually
spoken of as the peak load
+ In the consideration of the adopIlon
Of n new rate only such rate shoulo
be adopted as will tend TO ehcouIase
the use of light for longer hours ana ~
encourage new business. Inc rate
Z
toner: should be automatic IN chaIac-
/ fer giving the greatest reduction 70
consumers who burn the longest hours
The principle of giving Iong-hour con-
sumers a greatly reduced rate is gen
eraIlv recognized by all electrical men
as being the correct one, and IL is Deihg
put into operation by many cenIr -a
stations in the States in different forms
and wherever it has been in operation
it has resulted in satisfaction 70 the
customer: in popularizing the use OF
electricity for lighting and power an
extension of the number OF hours OF
burning lamps; increased business 10
the company and increased earnings
4 review Of the different rates adopt
Cd would be OF little value 10 you at
This time. as many Of them have oeen
somewhat complicated in character al
though very equitable to the company
and TO the customer. In many cases
however. they have been looked upon
viii, susoicion by the customer al
tbolIeh actually being reduction and
q benefit to him
a rate-to meet the requirements out
lired above-wouId be what IS known