Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-05-08
ASK TO REGULATE
GASRATES in D. c.
with COST OF OIL
Companies Petition Utilities
Board to Permit Increased
Basic Charge.

Permission to change the price for
gas each month as the price for oil
varies is asked by the Washington
and Georgetown gaslight- companies
in petition filed with the Public
Utilities Commission.
The present rate of 80 cents per
thousand cubic feet expires with this
month.
The company asks the commission
to fix basic rate of S1.oS thousand
cubic feet if the price of oil should be
IL cents gallon. with an. increase
of ] cent per thousand cubic feet Tor
every L of a cent increase in Ee
price Of OIL
The company has had pay -1e1a
cents: gallon for the oil to be used
during June. which means that the
price of gas to the consumer during
that month would be $3.50 thousand
cubic feet if the commission should
grant the application.
Difficult to Get Any OIL.
Howard S. Reside. president of the
Washington company, tells the COM
mission that oil used in the manufac-
ture of gas is difficult to get at any
price. Recently the company wrote to
forty oil companies. Most of them,
according to the petition. replied that
they had no oil to sell for gas pur-
poses and those who had it quoted it
at 12h cents gallon.
Being an old customer of one oil
concern, the local company. Mr.. Rec
side says. has been assured of sup
ply of gas during the year beginning
June /. This assurance was obtained
only on a, monthly basis. The gas
company. the petition states. will have
to-notify the oil concern on the 18th
Of each month of the amount it will
need during the next thirty days and
pay the prevailing price for that
month.
The local utilities commission never
has granted a company permission to
revise its rate to the consumer
monthly as the cost of materials fiuc-
tuates. and it is probable that dis
cuSson of this innovation will make
the hearing of the case lengthy.
The utilities commission announced
that the application will be heard at
1890 O'Clock the morning of May 20.
Oil Doubled In Price.
Mr.. Reside devotes nearly all of his
petition to discussion of the oil
oil for gas manufactuRs VIA cents a
gallon. During the wac the price
jumped to 8 cents. and then declined
to and IL cents last year.
Two months ago when the s5-cent
rate, to the consumer was about to
expire the commission continued it
until June 1 in the hope that the
fuctuating oil price might steady
itself.
The company calls the commissions
attention to the fact that the United
States and District governments arc
paying only 20 cents per thousand
cubic feet and that IL the new rates
are allowed for private consumers the
government will be getting gas at less
than its cost at the burner.
The appropriations for the govern
ment fix this rate and the gas COM
pany has written to both houses of
Congress about the matter. The Unit
ed States and District governments
use about 100000 cubic feet of gas
year.
Mr.. Reside also tells the commits
sion that because of the great diff
Guilty OF financing new projects at this
! time and the added fact that the COM
paA$ cannot increase its capital stock
without authority of Congress, no
definite steps have been taken toward
the erection of a coal-gas plant on
Analostan Island. 80