The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-12-31

Alfred Bavs President Of Works Board Asserts State Ser
vice Body Promised Committee Of Users Not to Alter Rates
Further Until Engineers Made Valuation Of Both Plants
as Basis.

There was great excitement at the
city hall today when 1t was learned
for the first time that the Richmond
Light, Heat & Power company, the
city plants competitor, had been
granted schedule of power rates by
the Indiana public utilities commits
sion which is, for the larger consum-
ers. lower than the power rates es-
tablished for both local plants by the
commission several months ago.
The petition of the Light, Heat &
Power company, made jointly with the
Liberty Light & Power company,
which purchases its current from the
l.. H. & p. company, was granted by
the commission on December IS, but
the city was not formally notified by
the commission of it's action until to-.
day.
Solicit Large Users.
In the meantime, since the author
ization of the wholesale power rates
petitioned for by the Light, Heat &
Power company, representatives of
that company have been soliciting
large consumers for their business,
submitting contracts to them. OF
course the city was not able to meet
this competition because city officials
did not learn Of the commissions ac-
tions until last Tuesday, and then quite
accidentally.
The wholesale power schedule au-
thorized for the Light, Heat & Power
company is not applicable to the city
plant, notwithstanding that the power
rate schedule ordered by the commits
sion for Richmond several months ago
was for both local plants, but, 1t is
! understood, the city plant can adopt
this wholesale rate schedule il it
sees fit.
Learns of Decision.
| Last Tuesday when Superintendent
Kleinknecht of the city plant learned
that representatives of the Light. Heat
& Power company had been soliciting
the large consumers with a new rate
proposal he and City Attorney Bond
went to Indianapolis and questioned
the commission members if they had
authorized the city plants competitor
to offer such schedule of rates. Klein
knecht says he did not get satisfac.
tory statement from the commission.
and 1t was not until today that the city
officers learned that the l.. H. & p
had been given the privilege of using
such schedule by the commission.
nearly two weeks ago.
All of the city officials are greatly
displeased over the tactics pursued by
the commission in this matter. espe-
cially so because the commission only
few weeks ago refused to grant a
petition filed by the city plant for a
further reduction of 10 per cent. on the
average.
! fused a joint committee. including
city officials and Richmond power
! users, was before the commission
President Bavis of the board of public
works said today. THE commission
t however. did agree to reduce the mini
mum charge per horse power from IS
cents to % cents. which was satisfac-
tory to all concerned. and a tacit
! agreement between the local power
users. the city officials and the com
mission members was reached that
there should be no further alterations
of the existing Richmond joint power
schedule until the two local plants
appraised valuation had been determ-
ined and fixed charges provided. Then.
it was understood the commission
would establish a schedule of rates for
both plants
L. n. & p. Protests Reduction.
Last July the Light Heat & Power
company filed formal protest with
! the commission against the city S
! petition for a ten per cent power rate
reduction. asserting that the l.. II. 4
p. could not afford to offer such a re-
duced schedule of rates. That com
pany also asked the commission to
determine joint power rates for this
city by appraising the valuations OF
the two local plants. Now the com
mission, in spite of its agreement not
to act on the rate question until the
two plants had been appraised author
ICES the l.. H. & p. to put into effect
a new wholesale rate schedule and
fails to notify the city of the action
it has taken until two weeks after the
order became effective.
"One or two men have taken advan
tage of this rate now offered by the
/ L. H. & p, who have been active lead
ers in the Commercial clubs patron
| iZe home industries movement In
my opinion the public spiritedness oi
such men is carried about in then
purses.
Agreement is Complex.
"As to the agreement entered into
by the commission, city officials and
representatives of local power users
which apparently has been viola ed by
the commission. the city feels honor
bound to abide by. its terms. believing
such an arrangement will insure
equity and justice to all parties in.
volved. The antiquities of the rate
order just issued in favor of the Light
Heat & Power company are very sug-
gestive and susceptible to mistaken
conclusions as to the result of its ap,
plication. and We think that in light
Of the uncertainties that power users
will hardly tie themselves up to con
tracts where results are so indefinite -
n II. Johnson, superintendent of
the L. H. & p. explained today that
the purpose of the wholesale rates now
offered By his company is to provide
!. an incentive for large consumers to