Evening star., 1919-03-15
To Affect April Bills.

To Affect April Bills.
The new rate. which is an increase
of 5 cents per thousand cubic feet
over the present charge for gas be-
comes effective March 20. 1T will be
reflected in the bills to be rendered
for April.
The commissions order paves the
way for adjustments in the rate at
the end of six months. should condi-
tions affecting the cost of manufac-
ture of gas be materially changed at
hat time.
1t is pointed out in the order that
the 95-cent charge will yield the com
pany a return of per cent under
present conditions The commission
states that per cent return
should be allowed normally. but that
il feels the burden of the war should
not be borne wholly by the consumer.
Apparently, it is the commission S
intention to adjust the rate on a
per cent return basis after prices
get back to something like pre-war
level
The utilities board points out that
while it's order ignores probable re-
duction in the price of oil and coal be-
fore the expiration of the six months
period. it makes no allowance for the
difference between what the company
actually earned since January /. 1915.
the rates been sufficient to yield a
eG per cent return during that period.
Reviews Matter at Length.
The commissions opinion and order
reviews the gas case at length. 1t
refers to the fact that an increase to
90 cents was given the company
March Is, 1918. based on an estimate
that it would yield 6 per cent on-the
fair value of the property as de-
termined by the commission: that
actual results of operation during
1913 gave the company a net earn
ing of $5o3.2S7.22, yielding a return
of approximately per cent on the
fair value.
The commission has delayed rem
dering a decision in this case it
states. '.in the hope that the abnor-
mally high cost of manufacture re-
sulting from the war would be ma
terially reduced as result Of the
signing of the armistice, but the evil
dence shows that so far there has
been no material reduction.
In its decision in the Potomac Elec-
tric Power Company's rate case. order
No. 223." continues the opinion. the
commission held that rates which
would yield a return of I per cent on
the fair value of the property of the
company that was used and useful in
the service of the public were Just
and reasonable.
The business of manufacturing and
distributing gas. as far as risk to the
investor is concerned. is quite SINH
lar to that of manufa curing and dis
tributing electric current for light
and power. so that if per cent rep
rssents a fair rate of return for an
electric power company similar
rate Shnnvd he allowed
pany.
''Should Share Burden"
Under the present abnormal condi-
fions. however. the commission feels
that the burdens imposed by the war
should not be borne wholly by the
consumer. but should be divided be-
tween the utility and the consumer.
Therefore. while the commission ad-
heres to its opinion that under nor
should be allowed gas and electric
companies iu order that capital for
necessary extensions may be readily
obtained. 1t is also of the opinion that
until normal conditions are restored
rates for service of this character
which viii yield return of per
cent are reasonable and in no sense
confiscatory''
The commissions order sets forth the
table Of compilations upon which 1t
DaSeS tnc N1ncty-uSe-Cent rate. IN
working out the rate the commission
assumed that the demand for gas in the
next six months will not be less than
1t was during the corresponding period
last year; that the price of labor will
be equal to the average price paid dur
ing 1878. and that the present prices
OF coal and oil will be maintained.
Text Of Formal Order.
The formal order issued is as fol-
lows:
a. That the rate to be charged for
gas furnished by any public utility to
any private consumer in the District
OF Columbia. for lighting, heating.
power or for any other purpose, shall
not exceed IS cents per 1000 cubic
feet
f2) That this rate shall apply uni
formly to all private consumers in the
District of Columbia, whether sup
piled with gas by the Washington Gas
Light Company or by the Georgetown
Gas Light Company
tS) That if any private consumer
OF gas shall not pay monthly any gas
bill within ten days after the same
shall have been presented, thel gas
company may charge and collect from
said consumer ten U0) cents addi-
tlonal for each one thousand q ,O00)
cubic feet of gas represented by said
bill as now required by law.
90 That this rate shall apply tc
an gas furnished from March 20, 1919
to September 90. 1919.
(5) That on September 20. 1919
the rate shan be restored automatical
=