The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-08-28
Twenty-Five Per Cent Slice
Follows Street Light Ap-
preparation.
STATE BOARD AGREES
First Case of Voluntary Rate
Reduction Petition Be-
fore Board.

A twenty-five per cent decrease in
the price of electricity was announced
by the municipal light plant today. 1t
Is effective, January /, 1914. This ap-
plies to all published rates, including
both power and light supply charges
The change in the scale of rates is a
result of a conference between City
Attorney Bond and Nimrod Johnson,
superintendent of the light plant, and
the members of the public utilities
commission yesterday at indianapolis.
Although officials have contem-
plated a change in the light plant
rates for some time, it was not thought
that it could be accomplished by the
date set. Until a short time ago. such
a marked decrease was not expected,
but the earnings of the plant have in
creased SO rapidly that the twenty-five
per cent decrease can be granted with
out lessening the financial rating of
the plant.
The highest net rate now charged
by the city light plant is To cents for
each kilowat hour of electricity used.
This rate applies only to residence
lighting. With the new scale in op-
Grafton, the greatest net rate charged
will be 5.4 cents per kilowat. The
highest published rate at present is 8
cents kilowat, but this is subject to
twenty per cent discount if the ac-
count is paid before the tenth of each
month.
Is Practical Move.
The change in the schedule of rates
was made possible on account of the
$4,000 appropriation in the 1914 bud
get for the purpose of paying to the
light plant the annual expense of light
ing the streets and public buildings.
This current has been supplied free
for several years.
Whether the Light Heat and Power
company will endeaNor to- meet the
rate reduction of the city plant is not
known, as J. B. Wharton, manager of
the company, is out of the city. The
new city schedule will be hard blow
to the competing company, it is antic-
ipated.
1t is said that impetus was given
the movement for lower rates by
changes proposed by many local fac
tories. Superintendent Nimrod John
son stated that several factories have
announced that if power could be Sc
cured at a reasonable cost, steam en-
gines would be discarded and motors
would be installed instead. The
heads of these factories approached
city officials with the proposition of
reduced rates and when given favor
able answer suggested that some ac-
ton on rate reduction be taken at
once if the city would have the fac
tories continue to use its power.
Request a Unique One.
City Attorney Bond and Supt. John
son stated that they met yesterday
with the utilities commission and
were given to understand that no ap-
praisement of the city plant would be
necessary to make such a reduction.
Richmonds light plant was the first
plant in the state to apply for a de-
crease in it's rate.
At the time the plant was built,
there was a bonded Indebtedness on
it of $144,000, of which a hundred
thousand dollars is yet payable. The
bond issue does not mature until 1927.
Judge Duncan said that in this
unique circumstance of plant apply
ing to decrease its own rates, the pub
lie utilities commission would make
no objection said Attorney Bond.
This remark of Judge Duncan does
not necessarily mean that the unoffi-
cial decision ON the local case cannot
be changed, but the officials here ac-
cept it as the final word of the COM
mission and will act accordingly in
making all preparations for the new
rates The official permission is not
required, it is believed, unless there
should be a complaint filed against
the company, demanding that the
present schedule be maintained.