The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-08-18
CASCOMP ANY IS
TO RAISE RATES
Superintendent Gross Announces
Advance of 26 per cent
After September Is.
SAYS RATE IS TOO LOW
Gas Company, Mr.. Gross Asserts,
Has Been Losing Money
For Nearly Year.

The Pensacola Gas Co. has an
nounced that beginning September Is
it will advance it's rates from $3.50
thousand feet to $1.9o per thousand,
net. The reason for the advance is
that the company has been losing
money, according to Superintendent
Gross. The Gas Co, Mr.. Gross says,
lost approximately 33 cents per thou
sand cubic feet on gas produced dur
ing July of this year.
In making public the announcement
that gas is to cost more after Sep
tember Is, Mr.. Gross said that the
company has not been able to borrow
money with which to make extensions
to its system and that su :. >vten-
sions will be made if the company is
able to earn reasonable return on
money invested. Mr.. Gross said:
Like all other business, the Pen
sacola Gas Company has been hit by
the tremendous increase of cost of do
ing business. If tits to continue to
give adequate service and deliver the
goods intended it must have more in
come, and can acquire II only by
charging more for it's product. 1t
must increase it's rate sufficiently to
cover the increased cost of manufac
ture. distribution, taxes and other
items of expenses and in addition be
able to earn reasonable return on
the capital invested.
"The demand for gas is continually
increasing, due to the many advan-
tages gas has over other fuels. The
scarcity and increasing cost of its
competitive fuels has caused many
people to turn to gas for relief. In
order to meet this growing demand,
extensions and improvements must be
made to the plant equipment and to
the distribution system. This re-
quires capital that can only be at
tracted when it is assured of a fair
return.
"The cost of producing gas has been
increasing steadily since 1915. The
expense has now risen to such a point
where the company can no longer car
ry the burden alone and must ask the
assistance of its consumers. The fol-
lowing figures will give some idea of
the increase in costs: Oil has in
creased from 3.52 cents a gallon in
1915 to $50 cents a gallon, an increase
of 10 percent. Coke has increased
from $4.34 a ton in 1915 to 1854, an
increase of 1921 percent. Coal from
$2.91 in 1915 to $6.31, an increase of
116.S percent; and labor has increased
over 100 percent. There is every in
dication that the price of all of the
above mentioned items will continue
to increase.
"Tht new charge calls for a gross
rate $500 per thousand cubic feet
and a net rate of $1.90 per thousand
cubic feet. A discount of 10 cents per
thousand cubic feet will be allowed on
all bills paid on or before the tenth |
of the month following the month for
which the bill is rendered. Prepay
ment meters will be adjusted to de-
liver a at the rate of s190 per thou
sand cubic feet. The increase there's
fore is 40 cents per thousand feet, an
increase of only 26.7 percent. A very
small increase in comparison with the
increase of practically everything |
bought today.
Many gas companies in other cities |
have increased their rates two and
three times in the last few years and |
the consumers of the Pensacola Gas
Company are indeed fortunate that the |
has up to now been able to /
stand the increased expense. Even |
with the increase in rate Pensacola |
will still be enjoying gas rate lower |
than most cities with which Pensacola 1
could be compared"