The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-05-24
INCREASE IN
LIGHT RATES
RECOMMENDED
Expert Sees Deficit If Power
Plant Continues to Supply
At Present Price-Meeting
of Business Men Called.
$5oo,o0O FOR PLANT

A meeting of Richmond manufacture
| ers who are consumers of electric
| power, with the board of public works,
| to discuss possible increase in local
| light and power rates, was to have
been held at p. m. Monday.
Clarence Perk, VINO was employed
by the city to investigate conditions
| at the municipal plant, reported to
| the board Monday that the city must
raise rates in order to avoid a deficit
| in 1920, forecast by the Palladium
months ago. The present rates are:
Alternating power rates. primary or
capacity charge-For the first 25 K.
w. of demand. each month, $3.50 per
X. W.; for the next 25 X. w. of de-
mand, each month, $500 per X. W.:
for the next so X. w. of demand, each
month, $3.50 per X. W.; for all over
100 K. w. of demand, each month,
$1,000 per X. w.
| Increment Rate for Power-For the
first 500 K. w. H., each month,
cents; for the next 500 K w. H.,
each month. "a cents; for the next
1000 X. w. H. each month. 21s cents:
for the next 1000 K w. H, each
month, 2 cents; for all over 10000
X. w. H, each month, IL cents.
Increment rates for. 1ighting-For
the first so X. w. H, each month, 7
cents: for the next $50 K. w. H, each
month, 61a cents; for the next 500
K. w. H, each month, 511 cents; for
all over 1000 K. w. H, each month,
4 cents.
According to Mr. Perk the increase
in rates will be necessary because Of
the increased cost of coal and general
| operating expenses. The municipal
plant is appraised at 100000 and the
public service commission allows a re-
turn of seven per cent on that invest
| ment.
Mr.. Perk informed the board that
although the first four months showed
profit, the operating expenses dur
ing the remainder of the year would
so far exceed the income of the plant
as to cause certain deficit.
$5oo,ooo In improvements.
At the same meeting the engineers
of the Morris-Knowles company, of
Pittsburgh, who have been employed
to make a survey of the plant to de-
termine what additional equipment is
necessary to operate the city plant in
a safe and economical manner, told
the board that improvements amount
ing to 100000 should be made.
The recommendations of the engi-
neers are as follows: (a) Remove the
existing engine driven $50 kilowatt
generator and install two 5000 kilo-
watt generator units, complete with
condensing equipment; (b) Install
new water feed heater and an addi-
tional water feed pump; (c) Install
travelling crane in the generator room:
Cd Install additional switch board
panels and provide Tirrell regulator
OF larger capacity; (e) Repair older
portions the walls of the older por-
t1ons of the boiler room; f) Install
the coal handling system recommend
ed by the engineers in their earlier
report.
I Plant Right at Capacity.
According to the engineers the tur-
bines at the plant are practically work.
ing at their utmost capacity and an ac-
cldent to any unit would mean that
the power supply of the factories
would be cut off for an indefinite per.
iod
: Under the plan proposed by the en-
gineers one of the two 5000 kilowat
engines would be able to take care of
! the city's needs in the event of trou-
| Bile in another unit.
At this time the municipal plant has
, capacity of 4.250 kilowatts, and the
demand Is a minimum of 5000 and the
maximum is $3.50.
The proposed improvements, the
, engineers say, would make the local
= plant certain of providing continuous
I supply for its patrons.
: Must Ask Service Commission.
: In case the city decides in favor of
, an increase in rates, a petition will
, have to be presented to the public
t service commission. According to Mr..
Perk, who was formerly a member of
> the commission, the commission will
no doubt act favorably on the request.
An effort will also be made to get
| the commission to allow an additional
per cent of income on account of the
proposed improvements. In case the
committee grants the extra per cent
enough revenue would be provided to
pay the interest on the bonds which
would be issued to cover the costs.
and to retire a portion of the bonds
! as they come due.