La Junta tribune., 1917-12-27
MINIMUM GAS RATE 20 CENTS
Public Utilities Commission Mskes
Order Fixing Minimum Gas Rate
Effective on December Bill

December goth the minimum month
ly charge for gas in La Junta sup
piled by the Otero Gas Company will
be 20 cents instead OF 81. the rate
which has been effective since Sep
tember 18th. This decision was rem
dered in the case OF the City OF La
Junta. complainant. VS.. The Otero
Gas Company. defendant. the hear
ing on which took place in this city
on December 4th, before the Public
Utilities Commission OF the State OF
Colorado. The statement OF the
case and the order made, as given
by the Public Utilities Commission
is as follows:
On the 18th day of August. 1917.
there was filed with the Commis-
sion by the Otero Gas Com
pany. a public utility furnishing gas
for fuel and Illuminating purposes in
La Junta. Rocky Ford and Swink.
an amendment to its schedule OF
rates and charges. at that time on
file with the Commission, providing
for minimum monthly bill OF 81
net per consumer. This amended
schedule became effective Septem-
ber is, 1917. In accordance with the
provisions of the laws of the state
OF Colorado pertaining to public util-
tiles.
On the 18th day OF November.
1917. there was filed with the Com
mission a copy of resolution adopt
ed by the board of aldermen OF the
city OF La Junta, protesting against
the minimum charge is filed in
the schedule of The Otero Gas
Company on August Is. 1917. ef-
fective September Is. 1917. request
ing to Commission to investigate
into the merits OF the minimum
charge and calling the attention of
the .csumlssion to a franchise con.
tract entered into by the City on La
Junta and the public utility. which
provides that no minimum shall be
charged.
Pursuant to notice given to all
parties In interest the above cause
came on for hearing In the city OF
La Junta at =. m. December I.
1917. at which time r. w. Herbert.
statistician for the Commission. sub
mitted a digest OF the annual report
Of The Otero Gas Company. as
filed with the Commission in ac-
cordance with Its rules and regula-
tions. covering the operation Of that
company for the year, ,eaded Dscem-
ber II. 1915. F. J. Rankin. cleo
trical and gas engineer for the Com
mission. testified 70 the fundamental
principles underlying minimum
charge for. public utility service. and
submitted an itemized statement Of
the charges usually entering Into
and going to make up the minimum
bill OF an average monthly con-
sumer. J. T. Updixe. president of
The Otero Gas Company. tes-
titled ~ TO the Increased cost Of OPP
Grafton Of the company and stated
that during the winter OF iSl6.1s17
there were about ITS meters show
Ing no consumption Of gas. This wit
ness stated further that the cost Of
labor and material had increased
100 per cent since the company
commenced operation In the year
1914. and that the price OF coal had
Increased from $50 Z. o. b. mine to
1920 Z. oi b. mine. . differences Of
$40. Mr.. Updike developed the
fact that prior to the year 1917 the
defendant company manufactured
gas entirely from crude oil. but due
to the increased cost OF that CON-
modify ita use In the manufacture Of
gas had become prohibitive. and II.
therefore. became necessary for the
com pany to install equipment for
the manufacture OF coal gas.
According TO the annual report Of
The Otero Gas Company for
tho year 1916. filed with this Com
mission. the operating revenue
amounted to Si%.oSs.s2 and the op.
I Grating expense s1s.se2.is. MAKING
the net operating revenue si.+s6.s3.
Tho net operating revenue for
the same period amounted to sSs.?b.
leaving s1.ss2.0s as the gross In
come available for depreciation and
return on the investment In tho
property. II II apparent TO the Com
mission that the earnings OF the de-
fendant arc not excessive A. this
time. and that the collection Of >
reasonable monthly charge from
consumers making use Of the ser-
vice will not increase the es-T'n"t
Of the COMPANY ~ ,osnt where thr
ccm,sny yin earn. an unressonsblo