Perth Amboy evening news., 1919-05-08
ADVISES CITY To
FURNISH LIGHT
Engineer Runyon Says Com
fnercia Lighting Would Make
Money for City

A Communication from Frederick G.
9unyon OF the engineering firm Of
Runyon q Carey, OF Newark, who en-
sineersd the municipal lighting plant.
4 system In this city, had n letter be-
fore the board, lei to Alderman Will
Son, In which he advised them OF his
IDEAS with regard to commercial SER
vice over the municipal system which
has heretofore been confined to street
lighting.
Referring to the $780, 900 invest
ment OF the city in a plant, which has
confined itself solely to street light
ms. Mr.. Runyon said the plant can
not continue under the limited opera
ton and prove successful from ar eco
>lomic standpoint as the investment
represents at least $500 worth OF
equipment Installed for the purpose
OF furnishing electrical energy for
commercial purposes n the charges
against this investment now bear
wholly against street lighting.
The present operating force Is not
employed to its full capacity while
the plant output Is SO restricted and
this adds again to the financial burden
OF street lighting.
1T is the desire of YOU committee
to t~naugurate commercial service and
realize upon the investment so made,
but you are confronted with two con-
ditions making this impracticable.
First: With q surplus generating
capacty of about 100 X. w. 1t Is APP
parently impossible to start CONNER
DIAL service with connected load that
will insure a minimum station load Of
90 X. w. and
"Secondi The oil engines now in
stalled will not operate satisfactorily
upon a load less than this mount.
All new operations of this charac-
ter must necessarily pass through the
development period during which they
are operating at an economical disad-
vantage and the situation is in no way
changed because 1t is the municipality
n not private enterprise conducting
the undertaking.
IF q load for tho dull period of the
t~wenty-four hour day cannot be in ex-
cess of 60 X. w. there Is only one
course to admit, 1. e., install a small
generating unit to meet this condition
and meet the situation.
I'VE have found that the cost of
such a unit will be about s21 900 (see
our report of April 2, 1919 n this
Investment will enable you to take
care of the demand for commercial
service. develop this field and realize
upon the Investment already made.
A lighting rates of seven cents
per X. w. hour and power rates of
Eve per cent X. w. hour with mini
mum rates for both as set forth fully
IN our report of February 4, 1916, the
plant income from the commercial
business upon the basis of a twenty
Ave per cent load factor (the average
throughout the United States) will be
between $50. 900 and $4,000 annually
THE total annual cost of rendering
this service (much of which is now
included in street lighting cost vii
be about s16,750.
las soon as the reliability of the
commercial service is established in
the minds of the this por-
ton of the business will grow rap
idly and the next units to install will
be several times larger than the pres
ent units.
while these figures of operation
cost were'made in 1916. and all such
costs nave Increased In 1919. the effect
VIII merely reduce the profit and the
T%entual gepeEPt feaarsstment in costs
sarials will finally eeaelZe the
present excessively high prices.
THE figures then made showed a
substantial profit, which, If earned, |
would have been turned over to the
city treasurer. whereas during the pre-
vailing high prices. only the consumer
viii profit by the reduced commercial
effected through the full util-
ization of the plant for commercial
business. |
'If the plant is carefully managed |
there Is no reason to doubt the success
OF the commercial distribution and
having already invested very substan-
tiai sum for this express purpose feel
that the committee and council are
justified in carrying Il on to a conclu-
sion."