Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-07-03
ELECTRIC RATES
WILL BE RAISED
HERE AT ONCE
(conanued From Page one.)

(Cont1nUed From Page One.)
quirements Of the ever-incrsasing de-
mand for light and power.
A table Of figures shows that the COM
pany generated for the year ending June
. 80, 1914, Il, $780, sS kilowatt hours of cleo
tricity.
The number Of kilowatt hours Of cleo
Il tricity generated during the year ending
4 June 80, 1919, was S4,152,657.
The increase during the year ending
June 80 1917, over the preceding year
was more than 100000 kilowatt hours.
Amounts expended each year for i'm
provements and betterments by the In
dianapolis Light and Heat Company
ranged from sS59,O54.S2 to $641, 434SS
Evidence presented " the Merchants
Heat and Light Company showed practl-
cally the same figures for increased de-
mand for power and light.
1927 ,52z NEEDED TO
FINANCE IMPROVEMENTS.
It is estimated by that company that
SsH $50 viii be needed to finance the
improvement program during the next
yeaf.
During the first three months Of this
year the Merchants Heat and Llght
Company spent S14s,592.02 for improve
ments.
Two surcharges have been authorized
by the companies, effective Sept /, 1911,
and Aug. 10. 1918, to meet the increased
and abnormal costs Of coal, labor ma,
terials and supplies, as well as taxes ano
other expenses.
The surcharges were made prlncpaA!
to cover the high cost OF coal, which
70 Of 81 ~
a ton. with an estimated cost OF approx
imately S345 4 ton for the year follow
ing the date of the surcharge.
It is estimated that coal for the next
year will be purchased for approximately
So a ton
That coal viii be lower IN efficiency
than coal bought for SL40 In 1914, ac-
cording to information given the com
mission.
Almost 10000 tons Of coal was used
BY both companies IN 1913.
1880 TONS OF
COAL ARE NEEDED.
Estimates by the Indianapolis Light
and Heat Company state that about 49,
900 tons OF coal VIII be needed for its
electric department during this year.
Almost 100000 tons Will be used by tbs
electric department Of the Merchants
Heat and Light Company for this year
Statistics show that the percentage OF
increase Of the cost of labor for this
year over the cost Of labor for 1919 will
be more than double the increase Of 191a
over that OF the preceding year.
Blacksmiths were paid in 1910 one
third more wages than they received in
1918, and 30 per cent more this year than
in 1919.
Wages Of carpenters for 1920 have al
most doubled the wages paid last year
and many other classes Of labor are now
receiving 60 per cent more money than
was paid them in 1919.
EXHIBITS SHOW
HEAVY INCREASES.
Exhibits provided by the companies
show in detail heavy increases in the
costs Of materials and supplies for the
year Of 1920 over 1919, ranging from 81
per cent on fuse plugs to 1887 per cent
on eight pin cross arms.
Following this statement in the order
are fluctuations which completely sum
Marie voluminous testimony covering &C
tual expenditures by the companies dur
ing given periods
In analyzing the operations OF bott
companies complications arise in the
matter Of depreciation, say the commits
sioners.
Nhe- commission, in its order issued
n - 1918, found a value for rate
hg purposes Of IS. CPS, 900 for the In
iapolis Light and Heat Company
total OF Ss.T61. 9T4.s7 is now set for
e valuation, which includes expendi-
res for improvements and additions
Ice July l, 1915, but excluding any
Apital charge which might have beer
de between March l and July :, 1915
40 formal finding Of value for rate
i making purposes in the case Of the Mer
chants Heat and Light Company was
nude by the commission, when it put
into effect, on September I, 1915, the
present base rate structure.
EACH MONTH BRINGS
OPERATING ADVANCES.
Because each succeeding month bring:
material advances in operating costs tbs
commission points out that 1t can not
be controlled by experience OF 1919,
or even the first six months OF 1920
Such bases could be used in norma
times, the commission states, but in
period in which operating costs changt
10 such an extent in thirty or sixty day,
as to make a difference between an easy
profit and a demoralizing loss, such {
showing carried wholly inaccurate i'm
pressions as to present conditions.
A monthly analyses during the frs
six months Of 1920 in the case OF eact
petitioner was caused to be made b.
the commission.
Operating costs OF the power general
ing plant OF the Indianapolis Light and
III r-a-