Perth Amboy evening news., 1920-05-18
GRANT rs CENT BOOST
IN LOCAL GAS RATE
Utility Board Fixes New Rate
P. A. Gas Co. at S1.15 In
stead of go Cents.
Bn SpecinI Corresnondenf-

By Special Correspondent.
TRENTON, May 1S:-An increase
from the net rate of ninety cents
thousand cubic to S1.15 a thousand
cubic feet was today authorized by
the Board of Public Utility Commits
sioners in dlsposing of the applica-
ton of the Elizabethtown Gas Light
Company, which serves the city of
Elizabeth: the Perth Amboy Gas
Light Company. which supplies the
city of the same name; the Crawford
Gas Light Company. Metuchen Gas
Light Company and the Railway Gas
Light Company. The action of the
utility board is based upon the un-
| derstanding that the companies ac-
| cept the new schedules of rates, OF
| which s1.15 is the base. by May 25
| for sales of gas made on and after
June /, 1920.
The utility board rendered two de-
| cislons. one covering the application
| of the Elizabethtown, Crawford. Me-
| tuchen and Railway companies, and
| second pertaining to the applica-
ton of the Perth Amboy company.
The report on the Perth Amboy
| application indicates that all four
| members were in unanimity of opin-
| ion on the decision reached in this
| case. although 1t is stated that to
grant a rate of S1.17 a thousand Gu
bic feet for gas, were the Perth AM
| boy application not considered related
to that of the other four companies.
would not be an unreasonable thing TO
do.
| In the Perth Amboy case It was
agreed the hearings should be depen-
dent upon and follow the hearings OF
| the petitions in the Elizabethtown
Company and its subsidiaries for the
| reason that about two-thirds of the
gas sold by the Perth Amboy Com
| pany is purchased from the above
| mentioned concern.
Besides fixing the $1.15 rate In
this case. the utility board refused to
allow the minimum bill of fifty cents
| for 500 cubic feet. The decision stated
1t would result in rate of 81 per
| thousand cubic feet for such custom
ers as may use exactly 500 cubic feet.
| a lower rate than proposed for Gus
| toners using more gas. This would
be inequitable, said the board. Thus
| the company is ordered to render the
minimum monthly bill computed at
the $1.15 a thousand rate. 1t Is also
provided that bills are to be due and
payable within ten days after presen-
| tation. Regarding the statement men,
toned before that $1.15 would not be
| unreasonable the decision said.
AN Increase to the people of
| Perth Amboy even though slightly in
excess of that of the people of adj
! iacent municipalities all of whom
| were previously supplied at the same
| rate for a long period of time would
| be resented to degree which might
| seriously affect the revenues expect
| ed to be derived from the rate fixed.
| An increase equal in amount to that
, allowed in adjacent communities
would obviate this. The board there
| fore finds and fixes as just and rea-
| sonable rate $1.15."
AS basis for the rate fixed in the
| Perth Amboy case, the utility board
| fixed a valuation of 100000 estimat-
| ed as of Lpne 80 next, on the com
pany's property In reaching this
valuation the board took what 1t de-
scribed as the middle ground In de-
termining the elements going TO
| make UP this total. Thus il took the
| fair value now of the property OF the
| company by applying to the inven-
| tory in existence of December 81,
| 1915, unit costs providing for PEI
| riod of five or more years prior TO
i December 81, 1915. and adding
| thereto the net additions OH the basis
| of book costs, for the period from
| January l. 1915, TO the date OF the
| valuation.
'In this way the public will be
protected" said the decision, against
undue imitation and the company Will
receive the benefit of actual increased
| burdens imposed upon it by condi-
tions created by the world war
The Perth Amboy company asked
for permission TO put into effect the
following schedule of rates: For 600
cubic feet or over, $1.40 per thousand
cubic feet with a discount of twenty
cents if paid on or before ten days
after presentation of the bill.
A minimum charge of fifty cents
per month per meter consuming 800
feet or less.
l nd f.th "a
material used by the applicant COM
pany has failed to earn fair
return from the day the proposed
rates were TO become effected down 70
the present time" said the utility
board.
The net rate of ninety cents has
lbeen In effect since 1918, when 1t was
fixed for the Passaic division OF the
Public Service Gas Company
The board then recommended tnat
1.-The Public Service Company extend
the rate to the rest of the territory
supplied by II, which was done Al
1.-THE same time. the Perth Ampoy
company as well as the Elizatpet ethtown
land subsidiaries reduced their existing
rates 10 the same net base rate of
ninety cents.
In the Hlizabethtown Company de-
cision mentioned. Utility Commission
er George f. Wright, of Paterson, dis-
sented, but filed no opinion. WINE
agreeing in the main with his col
leagues, Messrs. John w. Slocum
lof Long Branch. and Harry l.. Knight
OF Medford, in the case OF the iour
companies, Commissioner Andrew
lGaul, Jr., of Bergen County, added
la statement in which he intimated
that he would have gone further IN
lgranting the companies increased
lrates.
All the requests for permission To
charge increased rates We're predict
ed by the different companies upon
the increased cost of operation. In
the case of the Elizabethtown Com
pany and its three subsidiaries the
conclusions OF the Utility Board fol-
low:
CONTINUED on page 81