The Washington times., 1921-03-18
GAS RATE CUT
BEGINS TODAY.
!. Reduction to $1.25 Announced
BY Commission to Be Effec-
tive Till September 18.

The reduction in gas rates from
$1.32 to $1.25 per thousand cubic
feet, ordered by the Public Util-
tiles Commission late yesterday af-
ternoon, became effective today and
will continue throughout the sum-
I mer until September slS, when the
rates will automatically return, un-
less otherwise ordered, to 95 cents.
CUT ALL ALONG LINE.
In addition to reducing the rates to
small consumers the commission re-
duced the rates charged wholesale
consumers. Beginning today the new
wholesale rates are:
From $4,000 to 25O.00O cubic feet,
$1.20 per thousand.
From $4,000 to 100000, $1.15.
From 100000 to 100000, $1.O5.
For 1000 900 or more, 81.
The Commission, in reducing the
rates. rejected the petition of the
Washington, Gas Light Company for
continuation of the S1.32 rates. The
reduction in rates, predicted exclu-
sively by The Times on Wednesday,
came as a result Of the testimony. OF
Howard S. Reeside, president of the
COMPANY, tndt tne price oI OIL udu
declined from 12% cents to 9.97 cents
per gallon.
THE COMMISSIONS ORDER.
The commissions order, in part.
follows:
The evidence adduced at this hear
ing shows that there have been no
important changes in the prices of
material and labor since the present
rates were fxed in October. 1920, with
the exception OF gas oil. All through
the summer months of 1920, in fact
from June to December, 1920. the
price paid by the petitioners for gas
oil was l2% cents per gallon, the
average price for the calendar year.
however, being 1902 cents. due to the
lower price prevailing prior to May,
1920. Since the beginning OF the
present calebAar year there has been
a substantial drop in the price of oil.
the price during the month of Feb
ruary, 1921, being 9.9I cents per gal
Ion. While the testimony also shows
that the company has purchased some
oil at lower prices, the quantity has
been relatively small.
'The commission is of the opinion
that a reduction should be made in the
rates to be charged for gas. due to the
drop in the price of oil, but as the
prevail during that portion of the
year when the sales of gas are at a
minimum, it is believed that in JUS
tice to the company the reduction in
rates should not be made in direct
proportion to the reduction in the
price of oil.
During the hearing in this case.
counsel for the Washington Lunch
Room Association presented the re-
quest of the association for a change
in the steps making up the schedule.
suggesting that the maximum rate
apply to all gas consumed in guam
titles less than $4,000 cubic feet ps-
month, with reduction of cents
per thousand for each 100000 cubic
feet or less per month until the
minimum rate is reached. He claim
ed that out of seventy-one lunch
rooms and cafes canvassed. thirty
two haev averaged between $1,000
and 100000 per month for the past
three months, the remaining thirty
nine having used in the neighbor-
hood Of $4,000 cubic feet at least one
month during that period. He claim
ed. further, that IL the first step
were made to include those who
consume $4,000 cubic feet per month
there would be a strong incentive
for such business places to use more
gas and thereby more than Offset
the reduction in revenue resulting
from the lower rate. The Commits
sion is of the opinion that such q
change in the step rate is reason
q BILE, but thar 1t should not apply
to the extent suggested"