The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1921-06-01
ELECTRIC RATE
is DECREASED
BY COMMISSION
Order Handed Down in Petition
on Hughes Electric Com
pany Case e
VAL UATION is $4,000
Commission Uses Historical Re.
production Method for De-
termining Rate
VALUATION is $4,000

The state railroad commission to.
day handed down its order in the
case of the Hughes Electric company,
ordering a reduction in rates.
The commission arrived at a valua-
ton Of $4l0,000 for the plant, being
the valuation stipulated by attorneys
for the petitioning citizens and the
utility company, to be used in rate
making. The commission adopted the
historical reproduction basis of yalua-
ton it was stated, rather than "going
value" or the present cost OF prOduc-
tion.t ..'a-
The commission set aside the con-
tract of the city with the company.
for special rates for lighting the city
hall, etc, and fixed rates which are
now in eject, it being stated by the
commission that the company had not
observed the franchise special rates.
The rate changes follow:
First 100 kilowatt hours, general
lighting, 12 cents to II 1-2 cents.
Next 100, 12 cents to 10 1-2 cents.
Next 100, II cents to 10 cents.
Next 100, 10 cents to 8 cents.
Next 100, cents to cents.
All over 500 k. ". h., cents. Pres.
ent rate all over 600 k. W. h., Z cents.
City Hall Rate
The commission fixed rate of II
cents for the 100 k. W. h. for lighting
the city hall, with scaling down to
6 cents for all over 500 kilowatts.
For electric power it fixed rate Of
6 cents for the first 1000 kilowatts. 5
cents for the next 1000; 4 cents for
the next 5000. 3 1-2 cents for the
next 5000 and 3 cents for all over
10000.
For electric cooking it made rate
Of 3 1.2 cents per kilOwatt hour with
a minimum meter charge Of 81 per
month.
" At the hearing it was stated on
Behalf Of the company that 1t contem-
plate a reduction on some. items. 1t
was stated for the commission that it
was figured that under present rates
the company had earned Is to 20 per
cent on a fair valuation and that the
new rates were on the basis of an 8
per cent return.
The steam heat rate was fixed at 75
cents for the first 100000 pounds Of
condensation, 20 cents for the next
zoo, 900 and IS cents for all over 5o0,-
900.
Opinion Of Commission.
The opinion of the commission, at
the outset, says that "a number OF
complaints have been received by the
commission during the past two years
alleging that the rates of the Hughes
Electric company, of Bismarck, were
unreasonable and extortiOnate, "and
goes on to say the commission has re-
viewed all the facts in the case. .
The company operates in Bismarck
under a 25year franchise. dating from
August 10, 1900. The franchise pro-
vides that the company shall furnish
electric current to light the city hall.
engine house and city Offices without
cost to the city and that it shall fur
nish street lighting at a rate reached
on agreement with the city. ..M T;..
Expense of Free Service =
while the expense of furnishing
free service is properly borne by the
users of electric light and power serv-
ice, and provision such as that con-
tanned in the franchise calling for
such free service does not appear
proper to the commission. yet, in view
of the decision of the supreme court
on this subject in (Western Electric
v. City of Jamestown), and there be-
ing no complaint by the petitioners of
discrimination preferential to the city.
no action will be taken by the commits
sion at this time on this question:" the
opinion says:
+ Against Special Rates.
The commission held that special
rates made by the Hughes Electric
company to the Bismarck Water Sup
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