The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-07-16
LIGHT PLANT GIVEN
RIGHT TO INCREASE
ALL OF ITS RATES

An increase in rates for the Mu-
nicipal Light and power plant, to take
effect at as early date as possible,
will be recommended to the remainder
Of the Public Service commission. Com
missioner f. l. Lewis, head of the body,
announced Thursday at the close of the
hearing at the city council chamber.
Increased cost Of operation, as
brought out by the testimony of Ben
jamin Perk, expert accountant employ
ed by the city, was the principal factor
in determining the commissioners
decision.
Commissioner Lewis also overruled
the request of the Liberty Light and
Power company that the grant of the
increased rates to the Richmond plant
be withheld until it could file petition
for raise in its rates.
City Attorney Robbins said that the
Liberty company had known of the
proposed increase and had, had plenty
of opportunity to get its petition
ready. Mr.. Lewis concurred in Rob-
bins opinion and refused to delay the
recommendations for relief to the
local plant.
Perk Occupies Stand.
The afternoon hearing was occupied
with the testimony Of Benjamin Perk,
the public utility expert, and James
Dillon, superintendent of the municipal
plant, and their cross-eXamination by
Wilfred Jessup, attorney for the Liber-
ty company.
Mr.. Jessup tried to show that the
Liberty company operated on differ
ent basis from any other consumer of
power from the local plant. Accord
ing to Perks testimony he allowed
only approximately Is per cent for
line losses.
The attorney for Robert Ashe, pres
ident of the Liberty plant, attempted
to show that lines losses amounted
to between 20 and so per cent, and
that the Liberty company was allowed
only a credit of 10 per cent for line
losses.
Mr.. Jessup also cross-examined Mr..
Perk on the amount of coal used to
produce one kilowatt Of current. Ac-
cording to Mr.. Perks testimony it re-
quires approximately 435 pounds of
coal to produce one kilowatt of cur
rent.
Mr. Jessup asked if three pounds of
coal for one kilowatt production was
not about the right amount but it was
ruled that 4.35 pounds was an econom-
ical operation compared to the other
cities Of the state.
Superintendent Dillon was question
ed by the commissioner as to the rela.
tions of the plant to the Liberty
company and as to the peak load of
the plant 1t was brought out that
under the existing contract that the
| Liberty company has the privilege OF
| taking current from the local plant
and that the plant here must furnish
| the Liberty company with all the
| power that it demands.
Under this contract, the Liberty com
pany could embarrass the city of Rich
mond to serious degree, If new power
users should spring up in the Liberty
territory.
Might Demand Too Much.
! The Liberty company could demand
more than the surplus of the municipal
plant The contract was made before
the city assumed control of the light
plant The commission, however, di
rected the city to take over the condi
tions of the contract.
Robert Ashe, president of the Liber
ty plant, has never taken advantage oi
the contract, and he says that he will
never make any demands that will EN-
| barrass the Richmond plant.
The managers of the Liberty plant
will now try to get the commission tc
grant increased rates to their company
| to take effect at the time the higher
rates become effective in Richmond
provided the commissioner accepts Mr.
| Lewis recommendations.