The labor world. [volume] (Duluth, Minn.) 1896-current, 1916-12-30
.C|TYL|CHT PLANT:
i, FORCES RATE CUT
Average Monthly Bills in Seattle
Only $1.10-Formerly
Much Higher.

SEATTLE, Dec. 49, The average
monthly bill Of $4,000 residence con-
sumers Of the Seattle municipal plant
last year was only $1.10. Up to April
that year they paid a maximum of 6
cents a kilowatt hour for current.
Then the maximum was reduced to
SIX cents.
The municipal plant has to COM
pete with the Puget Sound Traction.
Light and Power company, which
had a complete mastery of the field
until the municipal plant appeared.
The city plant began. operations Sep
TENDER, 1905. with one customer: in
1908 it had $500; in 1911, $4,000.
The average rate Of growth for the
past four years has been 21 per cent
year; 1000 customers were added
in 1915.
Agitation Cuts Rate.
When the people of Seattle began
to agitate for a municipal plant in
1902 they were paying 20 cents a
kilowatt hour for residence lighting
current. The agitation resulted in a
reduction to IL cents, 40 per cent less.
The municipal plant began business
with a maximum rate of 81 cents,
and the private companies (there
were two at the time) reduced their
maximum to 10 cents with a 10 per
cent discount for prompt payment,
making the net rate cents.
In 1911 this rate was made the
same as the city's, 81 cents. In the
same year, however, the municipal
plant reduced it's rate to Z cents. The
private corporation met this rate.
Again in 1912 the city reduced it's
maximum to 6 cents, where, it re-
manned until April /, 1915, when the
rate was reduced to 5k cents. The
private company naturally reduced
its rate to the same basis.
Neighboring Cities Cut Rates.
"Rates in neighboring cities have
been reduced through the influence
of the city's SYSTEM" said J. D. Ross,
superintendent of lighting, land
many OF the rate schedules are SINH
lar to those made. in Seattle. On the
basis of the average consumer, rates
in the same towns surrounding Sc
attic that do not have municipal COM
petition are from q to 24O per cent
higher than in Seattle, the higher
rates being in cities where there has
been no agitation for a municipal
light plant. Aside from its regular
dividends, the plant is earning divi-
dends of at least 100000 annually
in reduced rates, which apply not
only to customers Of the municipal
plant, but to the whole city,
The financial condition Of the mu-
nicipal plant is as satisfactory as the
rates. For the first two years, while
business was developing, there was a
deficit of about 100000. The third
year business brought a surplus reve-
nue. Of $4,000, and the next year,
ending Dec. 81, 1908, showed total re-
ceipts Of $4,000 with a revenue sur
plus of $4,000.
Revenue Grows Rapidly.
From this beginning the revenues
grew until in 1915 the gross revenues
amounted to $1,073,411.2o, while the
revenue surplus above all operation,
maintenance. depreciation and inter-
est charges was $208,369.66. There
has been reinvested in the system
itself from the earnings more than
$2,500,000, enabling extensions to
serve the entire city to be made with
out issuing bonds.
Not only does the municipal light
plant do a lighting and power bust
ness, but it deals in electrical appli-
ances, which it sells at the lowest
prices permitted by the manufacture
ers. It is now experimenting with
electricity for heating homes, in an
attempt to devise means to make
such heating cheap and commercially
practicable.