New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-03-10
ELECTRIC LIGHT
BILLS MAY SOON
BE CUT AFIFTH
Reduction from 10 to 8
Cents a KilOwatt Hour
Is p. S. c. Plan.
100000 A YEAR
SAVING TO USERS
Order to Edison Company May
Be Issued REHABILITATION
Is Not Expected.

Along with the proposed reduction
In telephone rates and the actu-l re-
duction in the price Of bread, the ulti-
mate consumer may now look for
speedy reduction in the rate OF electric
current for lighting and power pur-
poses.
The Public Service Commission took
the first step toward this end yesterday
in adopting an opinion by Commission
er Williams recommending that an
order be issued against the New York
Edison Company. directing reduction
in the maximum rate from 10 cents a
kilowatt hour 10 8 cents.
This will mean reduction Of about
90 per cent on the bills Of about nine
tenths Of the small consumers in Man
haitian, and the western part of The
Bronx. according to Commissioner
Williams. 1t will cost the Edison COM
pany about 100000 year IN revenue.
Flat Dweller TO Pay Less.
"The fat dweller whose bill is now
si5O month" said Commissioner
Williams. will pay S1.20s and the shop
keeper using $50 kilowatt hours a
month will pay $50. instead Of $50. Inc
power rate will also be reduced TO 8
cents for the first 500 kilowatt hours.
The order against the Edison Com
many probably will be issued at the next
meeting of the Public Service Commits
sion, on Friday.
II is not considered likely that the
Edison company will resort to huga-
ton 70 oppose the order.
The reduction comes as the result o.
the complaints in the cases of George
Stadtlander and Julius Ewoldt. when
have been pending before the commits
sion and under investigation for nearly
three wears. Commissioner Milo K.
Naltbie held numerous hearings IN
these two cases. The commission yes
terday voted down the opinion and rec
concentration Of Commissioner MaltDie,
fixing the rate al ~ cents a klowatt
hour. The dissenting Commlssloner
finally voted for the adoption o. COM
missioner Williams's opinion on the
theory. rs he said, that "a hall LOAF Is
better than no bread. NV
In his opinion Commissioner Will
Jams stated that the Edison company
by efficient management was now earn
ing large return. lie believed too
LARGE q return upon capital actually
invested. IAN
Its net earnings for the year 1918
amounted 10 S7.sO2,732." the Commits
sioner said. "but these fell off about
S65O.000 for 1914. This leaves net
earnings Of about S7,l50,000 if present
rates are allowed 20 continue, which ia
equivalent to a return OF per cent
on $4,000 600, or 3 per cent on Sl45.-
5000.
S2.OOO,O00 Saved TO Customers.
81 therefore recommend reduction
in the maximum charge 10 eight cents
n kilowatt hour, which will mean
saving Of about 100000 a year 10
the Edison company's customers, which
would still leave the company S5,l5O,-
coo q year net. based upon the 1914
business, or S5S00,0 900 net with bust
ness as good as IN 1918.
Referring 10 the difference between
his recommendation and that of Com
missioner Williams, Commissioner
Maltbie said:
"The fundamental difference between
Commissioner Williams and myself is
that his plan will involve a cut in the
net earnings of the company Of only
$1,000 900 or S1,9O0,O00. | believe that
the rates should be reduced to the
extent Of from S2,S00000 TO S3O0O.OOO.
In other words, Commissioner Williams
believes In allowing the company net
rrofits of about 81 100000 more than ]
do. If total cut of 100000 were
made, the company would still have
net earnings Of S4,SOO.OOO, which is I
per cent upon nearly S7O,OOO,OOO,
whereas the record does not warrant a
finding of the value of the property in
excess Of $4,000, 600