River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1917-07-26
City Light And
Water Rates
Reasons Given BY The State Rail-
Road Commission For Change
From Old System to New
old Rate Unreasonable, Unlawful"
Flat Rate Proved unjust Diserimins
ton against Metered Consumers
Says Commission Report

A few weeks ago we published in
this paper the new ratesto be charg-
ed for electric light and water serv-
ice in RIVER Falls, and since that
time there has been a general query
as to the reason for the changes. In
answer we herewith quote from the
decision and order of the State Rail
road Commission of Wisconsin.
The Complaint
"The complaint in this matter,
filed March Is, 1916, states in sub
stance that the rates charged by the
River Falls municipal electric and
water utilities are unreasonable and
unjustly discriminatory; that large
number of the electric consumers
and majority of the water consul
mers are not metered; and that the
practice of supplying some consul
mers at fiat rates results in an I'M
just discrimination as against meter
ed consumers. following this the
report gives a complete schedule of
the rates then in force, and the new
schedule as arranged by the Com
mission.)
City Not Charged
An examination Of h above
shows that no charge was made to
the city for street lighting and for
fire protection; that the operating
expenses of the water plant repre-
sent only a charge of 81 900 for cur
rent furnished by the electric plant;
and that no provision was made for
depreciation.
Attention should be also called to
the loose manner in which the rate
schedules have be n applied. In
some cases fiat rate water consumers
have been charged from 81 to 81
per year less than the lawful rates,
while in other instances the charges
were from 81 to So in excess of the
lawful rates. These practices are
entirely indefensible and are prohibi-
ted and declared unlawful by Sec
lions 1878, 81, 80 of the Wisconsin
statutes.
AT the hearing, the representa-
tivt of the petitioners contend that
the city should pay for street light
ing and fire protection service, in
that failure to make a reasonable
charge results in an unjust discrimi-
nation against the commercial consul
mers. The city attorney, on the 9TH
er hand, took the position that, as
the city has built the plants and
practically completed paying f
them, it is entitled to street lighting
and fire protection service without
charge, and that the commercial
consumers should bear the entire eE-
pense of operation and, in addition,
pay return Of seven per cent on
the investment. Attention
was called to the fact that there is
no direct relation b e t w n the
amount of utility product consumed
by the taxpayer and the amount of
taxes paid by him, and that there
fore the practice of furnishing street
lighting and fire protection to the
city without charge and compelling
the commercial consumer to pay
rather high return on the entire in
vestment in the plants results in un-
just discrimination.
"Section 1797m-91 of the Wiscon-
sin Statutes reads as follows: IF
any public utility make or give any
undue or unreasonable preference
or advantage to any particular per-
son, firm or corporation or shall SUI
ject any particular person, firm or
corporation to any undue or unreas
enable prejudice or disadvantage in
any respect whatsoever, such public
utility shall be deemed guilty of un-
just discrimination which is hereby
prohibited and declared unlawful. 1t
appears that no extended argument
is needed to show that the furnish
ing of these services to the public
free of charge results in subjecting
commercial consumers of the utili-