The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-10-19
SMALL CONSUMER
|SFAVORED IN
GAS RATE BOOST
Increase In Rate For Both Gas
And Electricity Runs In
Some Cases As Low As Six
Per Cent.

Officials of the Memphis Gas and
Electric company were not prepared
Tuesday to state just to what extent
their revenues would be increased
by the boost in rates allowed them
by agreement with the city and later
embodied in an order from the state
public utilities commission.
They did state, however, that
owing to the fact that the greater
portion of their income came from
small consumers, many of whom paid
less than $1.00 per month, on an
average, the boost would not be so
large in actual money taken in, and
from percentage standpoint as
some of the higher percentage fig
ures would indicate.
The boost will fall highest on
small consumers. This is true be-
cause of the abolition of the service
charge, which has been a big factor
in the bill of the small consumer
of both gas and electricity. AS the
bill grew larger, the service charge
became less of a factor. When a
man used 10000 feet of gas the
charge of 80 cents for service, was
a small factor as it amounted, in
that case, to only % cents per 1000
The same was true of electricity,
where a service charge of 80 cents
grew lighter per kilowatt hour, as
the consumption increased. For this
reason, the percentage increase Is
greatest on the big users of gas and
current.
For instance, in the case of a fam
lily whichsus 1,000 feet of gas, I'M
der the old rates the charge, in
Guiding service" was $3.50; under
tho new rates the charge will be
S1.75, which is an increase of Is
cents, or approximately per cent.
If the same family used 10 kilo-
watt hours of electricity. the charge
under the old rates would have been
60 cents for the current and 80 cents
for Service" Under the new rates
the same consumption will cost 8
cents per kilowatt hour, or 30 cents,
or exactly the same as under the old
rates. @a i
However, under she provision of
the old rates which held the charge
for current to maximum of u
cents per kilowatt hour, the rebate
would reduce the charge to Is cents.
On this basis the new rates repre-
sent an increase of Is cents, or 20
per cent.
This family would pay for both
gas and electricity a total of S2.35
under the old rates, and $2.65 under
the new. an increase of 80 cents,
or about IS per cent.
The family which used 1000 feet
of gas. would, under the old rates,
pay $2.20 for gas and so cents for
service. or $2.70. Under the new
rates they will pay $3.50, an increase
of so cents, or 80 per cent. The
same family. by using ID kilowatt
hours of electricity, would pay under
the old rates. 81 cents for the cur
rent and 80 cents services charge,
or total of $114. Under the new
rates they will pay 1925. an increase
of ~ cents or 1915 per cent.
Again the maximum rate reduces
the charge for current to S1.05 cents,
which makes the increase in charge
for current q cents or approximate
~ II per cent.
The total outlay for this family
under the old rates was 1918. I'm
der the new rates it will be $4.76, an
increase of $101, or about q per
cent
In the case of very large consum-
crs the rate may run as high as ap-
proxmately 40 per cent for electric
ity and So per cent for gas. This
is in the case of a concern which
uses 5000 kilowatt hours of cleo
tricity and 100000 feet of gas. The
average increase on such a bill for
both items will be approximately 46