Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1919-07-29
GAS HEARING.
Rate Increase Angus
ia, Hallowell, Gardiner

VS~> AAS~A4O w SA4> NCA4 u11AS1
No Opposition from Either City
One Request for Lower Industrial
Rates-Public Utilities Asks Fur.
ther Information as to Cost of Gas
Delivered to Industrial and House.
hold Users
The Maine Public Utilities Com
mission on Monday morning heard
the case Of the petition of the Cen
trail Maine Power Co. for approval of
its proposed increase in gas rates for
Augusta. Hallowell and Gardiner,
Supt. George S. Williams of the gas
company and Judge Sanford L. Fogg,
of counsel for the Central Maine
Power Co., appeared for the COM
pany. No one appeared in opposi-
ton and but one letter was received
in connection with the matter. Fur
Their information was requested by
the commission. after which de-
cision will be rendered.
Judge Fogg stated that last year
the company found it was doing
business at loss and appeared be-
fore the commission with facts and
figures with the result that the COM
mission approved a new schedule of
rates, which is s1.S5. with 10 cents
discount for prompt payment, per
1000 cubic feet of gas. The company
again finds itself making gas at a
loss. on account of the general in
crease of cost of material and labor.
Believing that it is only proper that
ii should receive such compensation
as will render fair return on its
money invested in the plant, 1t comes
in good faith. seeking the permission
of the commission to make a further
increase to So per 1000. with the 10
cents discount and we can show by
figures that this increase is only rea-
sonable.
Judge Fogg requested Supt. Will
information as the commission
should require.
Mr.. Williams said the net balance
of the company for 1917 was Sass;
for 1918 $27o4: and for the first five
months of 1919 but $1s6.30. The de-
crease was largely due to the in
crease cost of labor and generator
fuel, the hard coal from which the
gas is extracted. The company paid
s11.S5 per ton now for coal that cost
500 in 1876 the same being charged
off in 1918 at SO per ton. About the
time the commission approved the
increase of last year. the company's
men notified it that they must have
an S-hour schedule or they would
seek other jobs; which resulted in
putting on two more men. Labor for
the first Ave months Of 1918 cost
s1402 and for the same period Of 1919
cost $4,000. Generator fuel in the
same months cost: For 1918, $3467;
in 1919, $4270.
Mr.. Williams said 1t was stated
and understood at the August. 1918
hearing that the estimated valuation
of the gas plant was $250.o0o. on
which a fair return at per cent.
would be $4,000. If we can get
from $500 to 500 this year, we will
do WELL"
The output Of gas in 1918 was 49,
100000 cubic feet and for the first
FIVE months of 1919, 13,350,000 cubic
feet. The July and August con-
sumption is heavy and will bring the
1919 output to about that of 1918. In
September. 1917 the company sold to
gao nm
September. 1918, 2.234,000; in Octo-
ber 1917, 2,565,000 and October, 1918,
2,647,0oo cubic feet The average
normal increase Is about to 10 per
cent. He thought that under the
August. 1918 increase it was not
more than 5 per cent. for various
causes: I'VE didn't encourage extern
sions or new service. because of the
high cost of everything and inability
to secure material. labor. etc. In
1917. the falling off of consumption
was 1928. per cent: in 1918, 1t was
1888 per cent: and in the first five
months of 1919 1t was 1897 per cent.
The shrinkage amounting to about
per cent, Is included in those figures.
The cost per 1000 cubic feet Of gas
sold to consumers was for the first
FIVE months Of 1919, $1.72ss; in 1918
1t was $1.4614. About Is per cent.
depreciation is annually figured on
the plant.
Chairman Cleaves stated that the
proposed new schedule as we'll as the
schedule Of 1918 contained no rate
for Industrial users. He read a let
ter from Charles F. Flynt of the Ken.
nebec Journal Co.. which stated that
Mr.. Wyman of the Central Maine
Power Co.. in an interview with him
had admitted the justice of the re-
quest Of the Kennebec Journal Co.
and other Industrial users for. low.
er rate than for ordinary household.
er consumption and asked the com.
mission to authorize such lower
rate. Chairman Cleaves asked II any
information was forthcoming on. that