The Hawaiian gazette., 1913-05-30
POWER AND LIGHT
CHARGES ARE REDUCED
tFrom "Wednesday Advertiscr)

a.v with the announcement by the Ha
waiian Electric Company, that begin
ming MAY ! it will inauprate gen
erai reduction OF sixteen and wothirds
per cent. in is p.escnt rates in Homo
lulu.
This action is taken following the
nrotsst against cyistInr electric light
rates made by The Advertiser last
month and backed up by complaints
from the public.
When Manager Blake assumed charge
of the company a few weeks ago he an.
nouneed that changes in rates would
probably be made.
1.-THE announcement today is in keep
inc with the new policy of our com
panv.n said Manager Blake yesterday.
The most Objectionable feature of TIL,
company's former rates was the mini
mum charge of two dollars per month.
This has been cut exactly in two and
will now be one dollar per month. As
this covers about 5000 watts it is said
that il is as much light as many of
the company's customers require. The
poorer residents Of the city will reap
big saving from this reduction, it is
claimed.
The minimum rate for horse power in
stalled has also been reduced from one
dollar per month, as at present, to fifty
cents per month.
The notice as issued by the Hawaiian
Company yesterday is as follows:
Notice to Consumers.
"The Hawaiian Electric Company,
Limited, hereby gives notice that it
has put into effect as of May /, 1913,
a reduced rate for electricity furnish
ed for lighting purposes--the reduc.
ton amounting to lG 2-3 per cent of
its former rate, in addition to which
discount of per cent on each bill
will be allowed if payment is made
on or before the 18th of the month,
Hereafter o primary rate of l2H
cents, instead of 10 cents per 1000
watts will apply until the total con
sumption for the month shall equal
an average of 1000 watts per 5O-watt
lamp or equivalent, installed. For
current used in excess of total con
sumption equal to an average of 20OO
watts per month per j0watt lamp, or
equivalent, installed, y secondary rate
of 6 cents per 1000 watts will apply.
Under this rating each consumer will
pay 25 cents for each 50watt lamp
installed, or its equivalent before the
cent secondary rate applies.
"It must be borne in mind in consid.
ering rates for electric current that
it is not possible to store current in
tho way that water or gas, for in
stance, may be stored and held ready
for use. The electric plant itself
must take the place of a reservoir and
consequently plant able to meet the
total maximum demand must be kept
installed and ready for service. For
this reason chiefly the factor of maxi
mum demand is of paramount import
ance in any method of fixing rates for
electric current
'The minimum charge of So per
month has also been reduced to 81 per
month. At the new rate this minimum
charge will cover a use of 5000 watts
per month, which is as much as many
customers use.
y AS stated above a discount of per
cent will be allowed on all bills, in
Guiding the minimum of 81 per MONTH
II paid on or before the 18th Of the
next month.
SIN presenting the new schedule of
rates to its customers the Hawaiian
Electric Company deems it desirable
that the public be informed as to Ger.
tain reasons for the common practise
by electric companies of charging pri-
mary and secondary rates based upon
both demand and consumption instead
of upon consumption alone.
1.-The public demands that the cleo.
trio company shall have in reserve at
NIL times sufficient power to take care
OF the demand which it may place
upon the company
''The greater part of the cost of
supplying electric service arises from
the fixed charges on the investment,
and these are practically the same
whether little or much electricity is
being used. Consequently when the
volume of business is such that Ger.
tain fixed charges are secured per
lamp, the company is in position to
sell its excess product at reduced
rate.
The greater the demand customer
makes upon the company, the greater
the investment, and the greater the
expense to the company in being in a
position to supply his demand.
Although the machinery necessary
to guarantee this continuous service
may be idle the greater part of tho
time, 1t is at all times available and
should be permitted to earn the
charges which accumulate against the
investment.
AS in any meter system, the con.
sumner pays only for the actual current
consumed, the total average of 20OO
watts per month per jO-watt lamp in.
stalled simply specifying the amount
OF electricity to be used at the primary
rate OF l2l2 cents before the cent
secondary rate applies.
Notice is also given that the mini
mum power rate has been reduced
from sl.OO per month per horsepower
installed to 80 cents per month pei
horsepower and that 5 per cent
discount will hereafter be allowed or
all power bills up to and including
1000 kilowatts per month if payment
is made on or before the 18th of tn,
next month.
'The company further desires to an
pounee, in view Of the change of it,
control and management, that tn,
reduction of 1929 per cent. in tn,
rates heretofore charged and tn,
establishment of 5 per cent dis
count for prompt payment is mad,
as first step in its poliey of af