Evening star., 1922-03-13
PRICE OF GAS CUT
FROM S1.1QTO $1.O5
FOR HOME USERS
CONTINUED from First Page.)


Gas Light Company Of Maryland. . per
cent: to Rosslyn Gas Light Company Of
Virginia, IL per cent, and to United
States and District Of Columbia govern
ments, no change.
They have also assumed reduced
prices for manufacturing materials
used In the production Of gas. CIV
ing a net manufacturing cost of sos
cents per thousand cubic feet sold
less than for 1891. Manufacturing
labor and work expense, production
expenses OF the Georgetown Gas
Light Company. Transmission and dis
tribution expenses. street lamp oper-
alton and commercial expenses, have
all been estimated In amount for the
year 1922, the same as In the year
1921, but this Is in effect q decrease
of per cent. since the estimated
make of gas for 1923 is increased by
that percentage.
Made Careful Analysis.
1.-THE commission has made a care
full analysis of the statements sub
mitted by the companies. after COM
pairing them with the books and
monthly reports for the year 1921.
and reaches the conclusion that a re-
duction of cents per thousand cubic
feet can be made from the present
rates to private consumers and still
permit the companies to earn q fair
return on the fair value Of their
properties"
The income is placed at $9s1,o
"While this amount Is In excess Of
funds. it does not take into account
centain claims Of the companies as
presented in their testimony. As
state above, the amount set up by
the companies for maintenance and
general amortization at the rate Of
9 cents per thousand sold was $4s.-
68S.70 less than the amount actually
expended for maintenance, leaving
nothing to be credited for general
amortization. The statements as sub
mitted do not show how much Of the
$44O,6s7.52 spent for maintenance In
1921 represents renewals or replace
ments Of property that either should
have been capitalized or charged to
the reserve for general amortization.
1t appears from the annual report Of
the companies for 1921 that only
$5,242.4s was charged to this reserve
on account OF renewals. replace
ments or retirements Of property by
and only $1.so4.s0 by the Georgetown
Gas Light Company. The commits
sion believes that the item Of general
amortization will be fully provided
for in 1922 under the rates proposed.
if proper charges for renewals and
replacements are made to capital or
to the reserve.
Preferential Rate Question.
"In its orders issued May 20 and
October 20, 1890. the commission call
ed attention to the statutory pro-
vision limiting the amount that may
be paid for gas furnished to build
ings Of the United States and the Dis
trict of Columbia to 70 cents per
thousand cubic feet, and to the lin
tied appropriations for street light
ing which prevent any increase in
the fiat rate now paid. At the time
the last of these two orders was
issued it was stated that II the two
governments paid the same rates for
gas as private consumers under like
conditions. the revenues Of the COM
panies would have been increased at
the rate of $4,000 per annum. Dur
derpayment amounted to $57.s30.34,
applying to gas furnished to public
buildings only.
In 1920. at ,he time Of highest prices
for gas. the cost Of gas delivered to
the street lampburner was approxi-
the companies receiving for gas used
for street lighting approximately 80
cents per thousand cubic feet, the
loss amounting to approximately
s114,ooo per annum. The loss from
this source in 1891 MAS not been
so great, since the cost Of manu-
featuring gas has been reducAd. the
cost delivered at the street lamp be-
ing 74.2S cents per Thousand. while
the amount received has remained at
80 cents. On the assumption that the
companies should receive no more
than the actual cost Of gas delivered
to such lamps. this results In an un-
derpayment Of approximately 37s,-
900 per annum. Expressed in cents
per thousand cubic feet Of gas sold,
this means that II the federal and
District governments had paid the
same rates as other consumers under
like conditions, the rates 20 private
consumers during 1891 could have
been reduced approximately 0.11
cents per thousand.
This question Of Q preferential
rate to the two governments was pre-
sented to the committees In Congress-
in 1920, as result Of which Congress