Evening star., 1920-05-29
HIGHER GAS RATES
EFFECTIVE JUNE |
ARE AUTHORIZED
Utilities Commission Grants
Companies Sliding Scale.
Homes to Pay $1.25.

Increased rates for gas, effective
June i, were granted the Washington
and Georgetown Gas Light Com
panies by the public utilities COM
mission today. The new rates follow:
Consumers using less than 100000
cubic feet a month. s1.25 a thousand;
from 100000 to 100000 feet a month.
$1.20 a thousand: from 3oo.0 900 to
100000 feet month, S1.15 thou
sand; from 100000 to 100000 feet a
month, $1.10 a thousand; from $3.50
900 to $1.000.000 feet a month. s1.05 a
thousand, and all over a million feet
month. 81 a thousand.
The present rate for gas is 95 cents
a THOUSAND cubic feet regardless of
the amount used. This is the first
time the commission has allowed re-
duced rates to large users.
Since practically no home in the
District uses as much as 100000 thou
sand cubic feet of gas a month. the
order means that the householders
will pay $1.25 per thousand, an in
crease of 80 cents.
Bulk to Pay &1.25 Rate.
Out of 1850 gas meters in the city
only about 500. including the govern
ment. use more than 100000 cubic
feet a month. This leaves the great
bulk of the gas users to pay the base
rate of $1.25 a thousand.
Since Congress alone can change
the government rate, federal build
ings will continue to get gas for 30
cents per thousand cubic feet and
gas for street lamps at 81 cents per
thousand.
The new rates will be for the next
three months. terminating August 81
In fixing these rates the commits
sion rejected the request of the COM
panies to change the rate each month
as the price of oil used in making
gas goes up or down. The companies
plan was to make the base rate S1.0s
a thousand II oil is ~ cents a gall
lon and to add 4 cents per thousand
for every cent increase in the price
of oil.
Since the oil bought for June cost
12h cents gallon, the consumers rate
would have been $1.30 per thousand if
the commission had adopted the COM
panies' plan. The companies proposal
to raise the consumers rate 4 cents for
every increase Of / cent in the oil price
was based on the fact that it takes four
gallons Of oil to make a thousand cubic
feet Of gas.
The rates which the companies asked
for would have given them a return Of
z per cent on their physical valuations
Tho rates granted are estimated to give
only per cent return on valuation.
Cannot Combine Bills.
Tho commission held that large firms.
such as chain lunch rooms. which use
gas at number Of different places. can
not combine their BILLS to get reduced
rate. but must pay tor each p)ace. ac-
cording to the amount of gas used at
each meter.
The commission IN its order. -ecog-
nisse the injustice Of the federal and Dis
trfct rates. and states that il the two
governments paid the same rates as
other large users the bills Of the gen.
eral public could be reduced Az cents
per Thousand cubic feet. without cutting
the companies revenue. Discussing the
rates, the commission states:
''These rates can be applied only to
gas furnished to private consumers, as
the price paid by the United States and
the District Of Columbia has been fixed
by statute at 20 cents per 1000 cubic
feet. The present large increase in the
price Of gas. necessitated almost wholly
by the recent increase in the price OF
between the rates paid by the private
consumers and those paid by the United
States and the District of Columbia.
'.An even greater disparity exists in
the case of street and park lighting. as
evidence before the commission shows
furnished only 81 cents per 1000 cubic
feet, which is 50 cents per / 900 feet less
than the lowest wholesale rate herein
established. If there were no disparity
between the rates to these two govern
ments and to the general public the rates
herein established could be reduced by
approximately Az cents per 1000 cubic
feet without reducing the earnings Of the
gas companies"
Meters for Outside Sales
The commission orders the Wash
ington and Georgetown companies To
install meters before December
which will make it possible to meas
ure exactly the amount of gas sold to
gas companies in nearby Maryland
and Virginia.
At present the local companies sell
gas in bulk to the Washington Gas
Light Company of Montgomery coun
ty. Md: the Georgetown Gas Light
Company of Montgomery county and
the Rosslyn Gas Company of Virginia.
The amount of gas used by these
companies is arrived at by reading the
meters of the consumers in those
states and adding thereto ~ per cent
to cover transmission and other losses.
Referring to this system. the commits
sion says:
while the commission does not
question the integrity of the oficials
Of these companies, il is believed the
practice is open to abuse and that II
should be corrected within a reason
able time by the introduction. of
meters in the mains Al the points
where they cross the boundary line
of the District of Columbia"
The companies asked permission TO
set aside II cents per thousand cubic
feet of gas sold for maintenance and
general amortization. They are now
allowed cents per thousand for these
fixed charges. The commission found
that IL cents would be excessive and
allowed 9 cents per thousand
Amount for Contingencies.
The companies further requested an
allowance of gig cents per thousand
cubic feet of gas sold for contingen-
cies On this request the commission
says:
1.-The commission feels tnat i'm view
of the uncertainty i'm the oil market
some allowance for contingencies is
essential but it is the opinion OF the
that the amount allowed
for this purpose can be somewhat re-
duced without injustice to the COM
pany"
The commission says that while the
small the cost of furnishing service
to these consumers lis undoubtedly
less than in the case of small con-
The commission expresses
the belief that the wholesale rates
should also apply to the three dis
tributing companies in Maryland and
Virginia. Further discussing the
wholesale rates, the commission
states.