Evening star., 1920-03-06
ASK EXTENSION Of
Scent GAS RATE
TO FIRST Of JUNE
Companies Indicate Figures
May Have to Be $1.10
After That.

The Washington and GeOrgetown
Gas Light Companies today asked the
Public Utilities Commission to con-
tinue the present rate of 95 cents per
thousand cubic feet until June /.
In the petition Howard S. Reside
president of the Washington company.
predicts that with the price of oil
steadily mounting and no indication
Of a drop in the cost Of labor. it will
be necessary to ask for at least $l.10
thousand cubic feet after June 1 to
enable the company to earn a return
OF Z per cent on the fair value Of it's
property.
During the war period the utilities
commission fixed per cent as a fair
rate OF return to the gas company.
Today's petition indicates that the
company believes it should be allow ed
z per cent. the rate allowed the Po-
tomac Electric Power Company.
Oil Contract Soon Expires.
Mr.. Reside tells the commission
that the company's present contract
FOR oil at cents gallon expires
March 15, and that he has only been
able to make contracts for sufficient
oil to last until June at IN cents At
the present time gas oil is said to be
quoted as high as IL and - cents, in
dlcating that the company will have
to pay more than 7k cents for the oil
1t uses after June. Continuing. Mr..
Reeside states:
Assuming no increase in sales for
the months Of April and May, 1920, as
compared with 1919, and the use of
the same number of gallons of oil as
were used for like period in 1919, the
increased expense, on account of In
crease OF price of oil, will be about
$So.ooO more for the months of April
and May than for the same months Of
1919.
$1.1O Rate Indicated.
Estimating 5 per cent increase in
sales for the year ending March 81.
AS21, which is considered a most lib
eral estimate, and assuming, for the
moment. that the company could OBJ
tain sufficient oil for said year at 7Ia
cents gallon. the indications are
tnat selling price of more than 81. 10
per thousand to the private consumer
would be required from April /, 1920,
10 give z per cent return on the
commissions finding Of fair value
brought down to March 81, 1921. hut
without including anything for in
crease In materials supplies and
working capital
ihe gas company does not antici-
pate any increase or decrease in Ia
Dor costs for the next year and only
a slight increase Of about 80 cents
per ton In the cost OF anthracite
coal. yet it does anticipate a large
| increase in the cost of oil after the
expiration OF Its existinH contracts
therefor. In fact, oil COMPANIES seem
not desirous OF entering into con-
| tracts for the supply of gas oils in
any large Quantities. and up to the
present time the company has not
been able to obtain definite figure $
a. to tho cost OF its oil supply for
the ensuing year. Until such figures
are obtaina BILE the gas companies be-
lieve the present price should not be
changed"
95-Cent Rate Goes to April 1.
When the utilities commission rais-
ed the rate to 50 cents last September
it ordered that the 90-cent rate
should be resumed April unless
Otherwise ordered.
If the commission is to grant the
request for continuance OF the S5-
cent rate until June, 1t probably will
hold public hearing on the Ques-
ton within the next two weeks.
The greater part of the petition
show that for the calendar year 1919
the net earnings that were applicable
to return on fair value were $685.
396.s7. from which no deduction was
made for general amortization. This
made a rate OF return Of $50 per
cent on the commissions valuation.
Net Earnings for Year.
The net earnings from March. 1919.
to March OF this year. without any
allowance for amortization. will be
$774,643.S6. The rate of return for
this period. without deducting amor
tization. is fixed at 6.S4 per cent.
The figures show that with the
proper amount for amortization de-
Quoted the rate Of return for the last
calendar year would be 4.04 per cent
and from March to March 5.47 per
cent.
Request also Is made in the petit
tion for an increase from $4O2.671.94
to $418,000 in the amount allowed
the Washington and Georgetown
companies for materials, supplies and
working capital.