South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-06-01
SOUTH BEND GAS
RATES INCREASE
STARTING TODAY
Public Service Commission of
Indiana Grants Local
Petition.

Beginning June 1 an increase Of
approximately 90 percent in the rate
OF gas for the cities Of South Bend
and Mishawaka is granted the
Northern Indiana Gas and Electric
company by order Of the public
service commission OF Indiana
The new price for the cOnsump-
ton OF every 1000 cube feet per
month is as follows
First 10000 cubic feet, $1.35 gross
and S125 net
Next 10000 cubic feet, S1.25 gross
and s1.15 net.
Next 10000 cubic feet. S1.I5 gross
and $t.05 net.
Next 10000 cubic feet. $11O
gross and $1.OO net
All over 100000 cubic feet. S5
cents gross and - cents net.
Due Monthly.
All bills shall be due and paya BILE
monthly the order provides, and
the provision that the net rates shall
be allowed If bills are paid in 10
days. beginning with the day follow
ing the DAY the bill is properly rem
dered. stands. The minimum charge
per meter a month is raised from
80 cents TO 81 BY the commission.
A sliding scale is established
which provides for the increase or
lowering of the price by S.9l per
200 cubic feet upon a change of
every $.003 in the price OF gallon
OF gas oil. The scale arrangement
u hich applies TO consumption OF gas
in excess Of 100000 cubic feet per
month fixes a maximum gross rate
Of $11325. and is based upon the
present average price Of $.O56 per
linn Fha q NJ %
gas oil.
Former Rates.
The rates which have been in eff
feet from Jan. /, 1919. until the
present time fixed a charge Of s1.OS
for the first 10. 700 cubic feet, with
a reduction OF 10 cents per 900
cubic feet between 10000 and 10000
and 20 cents between 10000 and
O.000 cubic feet. The gross charge
Of $.S3 was in effect for all over
$4,000 cubic feet per month, the dis
count Of 10 cents per thousand be
ing allowed in all cases for prompt
payment
The petition asking for an increase
in rates was fled with the commits
siQn March &c Of the current year.
by the Northern Indiana Gas and
Electric Co. W. A. McInerny ap-
Peared for the company. the cities
Of South Bend and Mishawaka be-
ing represented by the city attorney
OF each.
The gas company in its petition
alleged that the rates in force dur
ing 1919 were fixed shortly after
the signing OF the armistice when 1t
was the policy of the commission TO
require utility 10 bear a portion Of
the burden OF the war, that since
that date there has been an un-
precedented increase in the cost of
gas furnished on account Of the alb
normal advance in the cost OF labor
and material and the rise in the
market price OF gas oil OF so per-
cent above the prevailing price in
1919.
Increased Cost.
The company further stated 10
the commission that with the ex-
ception OF the slight change made in
January. 1919. il has borne the in
creased cost OF production without
increase In rates. The cost in MAX
ing gas this year over 1919 was es-
timated at $500 per 1000 Gu. Il.
During the last two years no
amount for depreciation reserve
has been set up and maintenance
and replacements have been POST
pOned wherever possible. the com
pany I'm its petition states. with the
declaration that during the last two
years the amount applicable 20 de-
probation and investment has been
less than FIVE percent annually on
property valuation.
The rate on the first 10000 cubic
feet per month asked for by the
company was S1.25 per thousand.
with a reduction OF ten cents on
each OF the quantity consumption
scales except that S5 cents was
asked for on all monthly consumr
tion OF over 200 600 Gu. Il. Subse-
quently. however. general relief
was asked for.
OVerpStimatc.
The commission in its finding
points out that IN estimating ex-
penses for 1919 the company esti-
mated $4l6,5ST when il was actual
ly S369.523. The estimated eX-
penses for the year thereafter is
placed at S759.O21. with an esti-
mated increase Of 10000, 900 cubic
feet IN gas sold.
An estimate OF $4,000. 600 was
placed on the company's property
with an allowance OF $4,000 for
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