Evening star., 1919-09-20
95CENT GAS RATE
T0CONT|NUE UNTIL
APRIL, IS DECISION
Utilities Commission Finds
Companies Earning Power
/ Would Be Jeopardized.
6 PER CENT ON VALUATION
IMPOSSIBLE AT 80 CENTS
Price Will Automatically Go Back
to Lower Figure in Spring Un-
less Otherwise Ordered.


less Otherwise Ordered.
There will be no change for the
present in Washington's 95-cent gas
rate, the Public Utilities Commission
decided today.
This rate will continue in effect un-
til April 1, under the commissions
ruling, when it will return automatic
dered at that time.
This is the plan the commission
adopted last spring, when 1t an
nounced the 95-cent rate to run for
six month period. ending today. AT
that time hope was felt the cost OF
gas manufacture would be reduced TO
the point of justifyinS reduction IN
the rate today
'Upholds 6 Per Cent Earning Power
But after considering the figures
presented by the Washington and
Georgetown Gas Light companies as
to their present cost of doing busi-
ness. the commission decides that they
will be unable to earn s per cent on
their varuations as esta abliShed py the
utilities board if the 95-cent charge
is not continued.
it has not considered the companies
suggestion of making a change in th'r
rate of return allowed. which is 6
per cent. The companies had pro-
posed that consideration be given to
establishing a permanent rate of re-
turn.
Text of Commission Ruling.
The commissions ruling follows:
"By its order No. 314. issued March
Is, 1919, this commission increased
the rate to be charged by the Wash
ington Gas Light Company and the
Georgetown Gas Light Company for
gas to private consumers in the Dis
trict of Columbia from 90 cents to 95
cents per 1000 cubic feet. The order
provided that this increased rate
should apply to all gas furnished rom
March 20, 1919. to September 20. 1913,
and on the last named date Should be
restored automatically to 80 cents per
1000 cubic feet. unless on -ors befQFe'
said date the commission should order
otherwise.
ron August 80. 1919 the washing
ton Gas Light Company for itself and
the Georgetown Gas Light Company
petitioned the commission for the is
suance of an order continuing. with
out limiting date, from and includ-
ing September 20. 1919. the present
rate of 95 cents per loco cubic feet
for gas sold to private consumers.
"A public hearing was held on Sep
tember II, 1919. after due notice, at
which the company presented state
ments showing estimated receipts
from the sale of gas and the cost OF
manufacturing and delivering the
81, 1919, based upon actual receipts
and expenditures for the first seven
months of 1919, and estimated for the
remaining five months of that year.
Supplemental Estimate Figures.
Upon request of the commission a
supplemental estimate was submitted
by the petitioner showing the results
for the nine months from April to
December. 1919, inclusive, based on
actual figures for the four months
from April to July, inclusive, and
estimated figures for the last five
months of 1919; also a comparative
statement showing the rates of pay
of employees for the weeks ended on
or about March Is, 1919. and Septem-
Der 10. 1919. The supplemental esti-
mate covers the period since the issu-
ance of the order No. 314, establishing
the present rate for gas, and shows
the full effect Of the 95-cent rate for
nine months
"a careful analysis of the company's S
estimates shows that they include
several items concerning the reason
ableness of which the commission ex-
presses some doubt. such as $42,533.97
for contingencies estimated at the
rate of q. cents per 1000 cubic feet
of gas sold for the last five months of
1919, and that portion of the item of
taxes which includes federal income
tax and capital stock tax.
Company's Claims Analysed.
Tho company also claims that the
allowance for materials and supplies
and cash working capital included in
the fair value as found by the commits
sion as Of December 81, 1914, should
be increased by approximately $525.-
600, due to the expansion of the busi-
ness of the company since 1914 and
to the necessity of carrying much
plies and these at greatly enhanced
prices From an examination of the
company's books and from statements
of its officials, IL appears that this
amount of S525.000 includes supplies
held for sale by it's commercial de-
partment, such as stoves, fixtures.
heating and lighting appliances. The
average cost of these supplies for the
first seven months of this year ap-
pearing on the company's books al
the end of each month is 1851
Moreover, the monthly balances show
ried, the maximum figure being S648,
939 for August, 1918, and the minimum
Z S465, SIS for May, 1919. i
! rIt also appe8sS that since the ac-
iIaisition by the Washington Gas
LIGHT Company of all the stock of the
Eeorgstown Gas Light Company and
the operation of the two companies as
pne- the former carries the materials
and supplies needed by the latter and
that the Washington company also
supplies the Georgetown company
with the necessary working capital
These several considerations tend tc
materially reduce the companyS claim
and supplies and cash working capital
Orders Present Rate Continued.
THE evidence submitted by the com
pany at the hearing shows that ar
advantageous contract for oil has
heen made at 6 cents, good until about
April /, 1920: a decrease in the aver.
age price prevailing prior to April
1919: that a contract for years sup.
ply Of coal. also ending about April
1920. has been made at an average
price alongside the works of 1914
somewhat less than the price of the
previous year, although an increased
freight rate of 20 cents per ton has
been made recently. which must b<
added to this price: that there has
been a material increase In the COS,
-Takinx into consideration all tn.
facts presented by the evidence in
CONTINUED on second Page.l