The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-11-27
LOWER GAS RATE.
HIGHER STEAM, Isl
PROPOSED BY The
POWER COMP any
Twenty Per Cent Cut in
Gas, 65 Per Cent Raise
in Steam Suggested
MATTER HINGES
ON AMENDMENTS S
Company Proposed That
Charter Be Changed to
Permit Advance

A reduction OF 90 per cent in the
gas rates in Fargo was proposed by
the Union Light, Heat & Power
Co., in a communication addressed
to, President Alex Stern of the city
commission, and filed with the COM
mission at its regular meeting this
morning.
The reduction, however, hinges
upon a change in the ordinance gov
erning the steam department of the
company, a. proposed amendment to
that ordinance being submitted
1 which carries an increase Of ap-
proximately 65 per cent over the
rates provided in the charter under
which the company is operating.
No action was taken at this morn
ing's commission meeting, the COM
nunication and suggested ordinance
being laid over for further consi-
deration at an adjourned meeting Of
the commission called for 3 o'clock
this afternoon.
Claim Loss on Steam.
In the communication submitted,
the 1917 cheating year"-from Sep
tember / to September lis sus-
tanned loss in its steam department
OF $19,9S6, not including any allow
ance for depreciation or interest up
on investment.
BY being given the right to ad-
vance steam rates in accordance with
what it says is the cost of producing
that commodity, the company says
it will be possible to reduce the net
rate on gas from 50 to $1.60, shifting
the burden from about $500 gas con-
sumers to slightly more than 100
steam consumers, where, the COM
pany contends the burden actually
belongs. The company does not con-
cede, in its communication, that the
new proposed rate on gas would per-
nit it to operate that department at
a profit, but makes the point that the
shift from the gas consumers to the
steam consumers would bring about
more equitable adjustment OF the
account
A sliding scale of heat prices is
proposed in the newly suggested
amendment to the present steam heat
charter. BY it. a reduction In the
steam rate would be effected on a.
certain fixed basis as the price Of
coal recedes-a 50-cent coal cost de-
cline being the unit on which ADJUST
1ilents in the steam price would be
made. Contracts, however, would be
based for the year on the price of
coal on Sept. i. and no change would
be made in the steam price during
the heating year regardless Of further
variations in coal prices-up or down.
Attorney A. w. Fowler, in present.
ing the proposition to the commits
sion, said the suggested scale OF
steam rates is the same as now eff
fsctive in st. Paul and other cities,
and that it was regarded as the fair
%1ao% hn
both to the consumers and the COM
pany.
ON the basis Of the peace time
price of coal, the new ordinance as
amended would make steam cost in
Fargo 10 cents per 1000 pounds or
condensation, while the rate under
the existing charter is slightly in ex-
cess of so cents.
The rate to a majority Of the
steam consumers, based on present
coal prices, would be 81 per Sl,OOO
feet of condensation, the gross rate
being $1.10, with 10 cent discount
consumers fall within the second
class rate, using in exces OF 4O,OOU
pounds OF steam month.
If the city commission accepts the
comDany's proposal, the increased
heat rates and the reduced gas rates
would be effective as of Dec. l, this
year. -,
The city commission discussed the
matter briefly after Mr.. Fowler had
presented the situation. Mr.. IFoWler
said the high steam rates would give
the company approximately $30,OOO
mora income from that department,
while the decreased gas rate would
lower the income from that depart
lcnntinued on page 81