The Birmingham age-herald., 1911-11-18
Base Rate Reduced

From the above you will note that the base rate has been reduced from 12 to 10 cents per K. w. H., the max imum net rate of 10.S cents per K. " H. to 9.05 cents, and the minimum charge from $1.13 net to $1.05 net, and that the discounts have been changed from a purely quantitative scale of re- duction to scale of reduction based on the period of usage of the lamps installed with quantitative discounts upon excess usage
 1t is very clear that those cus-
 toners whose average usage, per
 light installed, per month, is great
 est, will profit most by this rate.
 Now, such customers permit of longer period of usage of the power plant equipment and distributing sys- tenn by the central station. thereby tending to increase the average de- mand upon the central station without increasing the investment. And, since the fixed charges of interest, deprecia- tion, taxes, insurance and maintenance are in proportion to the amount of the investment represented by the central station equipment, and since these fixed charges constitute a large DOT ton of the cost of generating and ois tributing each K. w. H. of power, 1t is clear that a greater period Of usage by the consumer will permit of 8 lower cost of production by the central syA ton. It would, therefore, appear that, in it's broad provision of reducing the lower cost of production by the central station, the proposed rate is an equi- table arrangement
 Now the objection to the rate pro- posed Is the republication which it in- troduces in endeavoring to carry out the principle of reduced rates for in creased usage of lights installed Not only is it difficult for the average cus- toner to check the bills of the pub lie service corporation, but there is a possibility of confusion in determining the size of the connected load for each customer, the connected load having considerable bearing upon the rate to which the customer Is entitled. In res- idences it is understood that each outlet will be rated at 50 watts and in com mercial building each lighting outlet will be rated in 50 watt equivalents. Should commercial customer change from one type or size of lamp to an- other. the value of his connected lamp must be corrected before the proper rate can be determined While such complications are undesirable, they are nevertheless inherent to the principle posed rate, and are therefore unavoid- able. Since, however. similar rates have been put into operation in other cities, without serious difficulty, there can be no reasonable doubt but that the customer who is desrous of checking his bills can be educated to do so with : in a reasonable period after the install latfon of the rate.
 Mode of Application
 The mode of application of the pro- posed rate is as follows:
 First ascertain the number of go watt outlets and multiply this number by l 1s, and the result will | be the 30 hour usage of thc con- nected load. If this 30 hour usage | fs greater than the K. w. H. re-
 corded by the service watt meter,
 the K. w. H. recorded by the watt
 meter must he multiplied by OH l cents (the maximum net rate) In
 determining the cost of the cur- l rent for the month. If the 30 hour | usage Is less than the K. w. H. re- corded by the watt meter, the
 method will be as fOllOwas Mu1ti- l ply the 30 hour usage tnameIy, 1H l Jin,es the number of 5O watt out
 letsD by OM ceutsg then deduct the sO hour usage from the meter read | ing to obtain the excess. If this
 oxcess iu less than 25 1t must be