Arizona republican., 1914-02-18
A Public Service Board of Appraisal


 We find that some good citizens of Phoenix in accord with the agreement between the state corporation commission and the Pacific Gas & Elec- trc company, entered by the commission uary 30. Under that agreement there has been revision of the of the company, but the really essential feature of the agreement is provision for the appointment of board of appraisal upon whose conclusions to the value of the companys prop erty, be further revised.
 Until such a conclusion has been reached, ds- satisfaction must exist for the people will never be satisfied until they know that the rates do in elude interest watered stock inflated But believe that there is desire today, the part Of both the company and the consumers to get together on just basis for rates.
 The existing rates which went into effect on February 10 are based tentative valuation. of the companys property, derived from the sugges- tions Judge Morrow of the Ninth circuit of appeals in granting temporary injunction restrain ing commission putting into effect dered by it last June, considerably lower than the present rates.
 On such a valuation this clause of the agree framed: The commission agrees that the company shall be entitled least eight per per return it's total valuation may be determined from time to time; that per
 
 deemed excessive and rates shall not be disturbed until the said net return under reasonable operating costs. etc, shall exceed per cent per annum valuation"
 The agreement also provides that the compro mise rates, that s those in force, shall not be disturbed until the company shall have earned net return of eight per per annum from August l, 1912 the total valuation nor until the net return shall exceed ten after the date the installation of those rates unless the rates are changed by mutual agreement between the com pany and the commission.
 Under the agreement in the temporary rates provided pending appraisal, there has been def- nite downward revision of the residence lighting and the power rate. The base rate on business lighting is unchanged, while very slight reduction in the base gas rate. Under the previous charges of the company but one rate for light gas power existed the consumer who used large quan- titles depending for his rate private agreement. Under the agreement secondary rates. based on the amount used are installed and have naturally been arranged to encourage consumption. These secondary rates somewhat intricate, dealing with kilowat hours off peak service corrected loads and technical details, which make it difficult for the average citizen to pass ntelligently upon the reasonabeness of the secondary rates. His monthly bills, however, Will greatly assist nm Tn forming HIS opinion
 AS we have stated the main thing in the agree ment is not the schedule of rates, but the pro- vision for the appointment of board of appraisal fix upon just basis for the fixing of rates which will be neither sonable confiscatory. The valuation made in be half of the commission on which the rates ordered last June prob ably too low, as Judge Morrow suggested Citizens naturally suspect that the valuation reached the part of the company too high. Here is con troversy that be settled only by more competent and more dsinterested experts than have yet been employed the work
 Thus notwithstanding the agreement between the company and the commission, the public still regards the matter as having been left open and will regard it until it can be convinced that just and definite basis for making rates has been reached
 It us, therefore, that without delay the commission and the company should appoint a board of appraisal and should endeavor the services of men of the highest character and ability; in other words, trained public service experts of na tional standing We believe that if the commission could secure MT Biron Arnold of Chicago whose vices have been of inesmabe value in settling many public service disputes of his type, long step would taken toward the settlement of this very important public matter. And, believe that if the board of appraisal should be composed of men of unquestioned reputation and experience their conclusions would probably be concurred in by all parties in interest.
 The Democratic State Committee
 Whenever two more democrates are gathered