The Richmond palladium and sun-telegram., 1920-11-08
Keller QUESTIONS
INCREASED VALUATION
ASKED BY COMPANY

A valuation of approximately $780,
900. for rate making purposes, was
claimed for the property of the Rich
mond Light, Heat & Power company
by representatives of the company at
a hearing held before Fred B. Johnson,
a member of the Indiana Public Serv-
ice Commission, on the company's
petition for an increase of natural gas
rates and for the establishment of a
rate for artificial gas. The hearing
vas held Saturday at the Richmond
city building.
Will w. Keller, city attorney, disput-
cd the valuation claim advanced by
the company. Mr.. Keller declared that
the company's actual valuation was
only a little in excess of $50O,O00,
than the valuation established several
years ago by the state commission for
the local company's holdings.
A. c. Howard, an engineer for the
corporation which controls the local
gas company, testified that if the COM
pany's valuation was based on present
day costs it would approximate ST.
e95, 900.
Test Artificial Plant.
It was announced that the artificial
gas plant of the local company would
be given test some time between
November 25 and December ].
Before any action is taken on the
company's petition another hearing
| will be held at Indianapolis before the
commission.
N H. Johnson. mana ger Of the
| Light, Heat and Power company. tes.
titled before Commissioner Johnson
that the present supply of West Vir-
ginia natural gas was sufficient only
| for cooking purposes and was made
quate under moderate weather condi-
| tions. He stated that he believed
Richmond would be without natural
gas by February. 1921.
| Keller Gives Opinion
Will w. Keller. city attorney, in
! formed Commissioner Johnson that at
recent conference on the gas situa
ton held at Dayton a representative
of the pumping company from which
the Light, Heat and Power company
secures its natural gas had stated that
| Richmond would receive this winter
so per cent of the supply furnished
last year, and had expressed the opin
| ion that, so far as Richmond was con
cerned, the natural gas supply would
not be exhausted until next October
Mr. Howard testified that the com
pany was not receiving a fair return
on its present investment valuation.
| No specific schedule of increased
rates for natural gas was submitted
! by the gas company, nor did the cole
pany indicate what rate it desired for
artificial gas. Testimony was intro
duced, however, that the cost of manu-
featuring artificial gas in Richmond
would be about the same as in Terre
~I -I I,t H.
manufacturing cost in Terre Haute
was 1857 cents per thousand cubic
| feet
Keller Makes Demand.
Mr.. Keller, for the city. demanded
that the company be required to main
| tain the gas plant in readiness for im
mediate service, including the required
supplies of coke and oil. n. H. John
son declared that the artificial plant
was practically ready for operation
and that the necessary coke and Gil
supplies could be procured on As hours
notice Commissioner Johnson stated
that the commission would hold the
local gas company responsible for pre-
paredness to provide artificial gas
service in the event of the failure OF
the natural gas.
Commissioner Johnson also indicat
ed that whatever artificial gas rate
was established the rates would not be
based upon costs now prevailing. He
said that the rate schedule would up
doubtedly be based on the prospect
of somewhat lower costs which are
expected to prevail within the near
future. He said the proposed art
ficial rates. in any event, would be
tentative and subject to revision