Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-05-14
Trihune's Helena Bureau.)

the application with the exception OF
one item whereby the minimum month
ly charge is increased from 80 cents
to 81. The report is signed by Com
missioners Lee Dennis and Daniel
Boyle, with a dissenting opinion of
Samuel Nj. Ross in which he concurs
in the general report but declines to
concur in the increase of the monthly
MINIMUM, holding that there is no
justification for such increase.
The report Of the commission con-
sists of % pages of typewriter mat
. ter, including three large tables a
comparisons in figures of plant valua-
tons. production costs and operation
costs and revenues.
Value Plant at $462,627
In arriving at a valuation of the
Great Falls plant for rate making pur-
poses, into which many factors are
taken under consideration. the com
mission places a value on the property
of S462,627. which is nearly $500
a~rcater than the valuation placed on
the property by the commissions en-
gineer, is about $131,OOO less than the
valuation reported by the engineers
employed by the gas company, and is
about S253,O 600 less than the reproduc-
ton cost as claimed by the company.
BiNSNht fhtNE1 "llNh WIN AIiti
in effect. with the exception of the
change in the minimum monthly charge,
and for which the gas company is
ordered To fill a schedule with the com
mission not later than May 81. TO be
effective June 1. 1922, are as follows:
First 10000 cubic feet $1.95 per
thousand.
Next 10000 cubic feet $1.75 per
thousand.
Next 10000 cubic feet S1.55 per
thousand.
Over $4,000 cubic feet S1.30 per
Thousand.
All subject to a discount of 10 per
cent if bill is paid by the tenth of the
month following in which service was
rendered.
Consumers Protest
Anticipating an application by the
Great Falls Gas company for a general
rate increase certain consumers of
Great Falls on August Is. 1921. filed
with the commission Il complaint to OBJ
tain an order directing the company
to restore rates named in the COM
pany's franchise but which had been
departed from under order of the pub
lie service commission on August 1,
1913.
On August ~. 1921, the gas com
pany filed "a formal application for
approval of a proposed schedule of
rates which carried q small increase
over those then in existence. in order
TO establish the fair value of the gas
c~ompany's property a survey of the
property was made BY the commissions
engineer. j. II. Bonner, and at the
same time Il separate survey was made
by Foster & Luck. engineers employed
by the gas company.
III. a.- n-I~ !
their estimates on five year average
prices. 1916-1920. with their figures
brought w as of January ], 1921.
placed the cost Of new reproduction.
with an allowance for working capital,
cost of financing. and allowance for
gcing value. at S6G2.364. and cost of
reproduction. less depreciation. at
SJ93.917.
Estimates Plant at ~S435,246.93
The commissions engineer, J. III.
Bonner. took five year average prices
of 1913-1917. with his figures as of
April 80. 1919. and estimated the cost
of reproduction. new, at S3SJ,64o. with
additions from April 30. 1919, to
August II. 1921. Of Si9.601.93 max
ing a total Of S435,246.93.
The commission decided to apply
the five-year average prices. 1916
lJ-t, Iof IlP biSlS III NdiutS, ohd ~
dealing with the subjects of deprecia-
ton, land, physical property other than
land. working capital, cost of flnanc-
ing and going values. it arrived at the
following base values:
Land IS 10000
Transmission and distribution BOG. 73S
Buildings and miscellaneous
structures .............. 1851
Plant equipment ........... 13o.6l3
General equipment ......... 6,l33
Working capital ............ 23.NO
Going value $4,000
Total as of Jan. 1. 1921 ...$43S,501
TO bring the property and plant ac-
is necessary to add the items enter
ing therein from Jan. 1. 1921, to April
[, 1922. the latter date marking the
asst recorded figures available to us.
The company claims additions amount
ng to SOS, $50. OF. this sum S4.624
discount on bonds, which
we decline to allow. Adding the re-
nainder, $24.1 26, to $43S,5O1, we ar
at our rate base as of April 1.
1920, $462,627."
Refuses Return Asked
The company asked for a return of
10 per cent upon the rate base as its
but the commission adopted a
'eturn of s per cent.
As q basis for computations III prob
lble future costs the commission Sc
ected the year 1921 and in this con-
the report shows:
1T is true that that year witnessed
cute industrial depression in Great
falls, and the community suffered
rom adverse conditions in the agri-
.ultural territory which it, serves. but =
Notwithstanding. this utility weathered :
he storm in a fashion that is little
hort of remarkable. With but one
,ss consumer attached at the close
f the year than was served at the
lose of 1920. when the high water
lark was reached. 5.391 300 more Gu
ic feet of gas were sold and used than
I 1920. more gas than at any previous
me in the company's history. Net
were S332,411 81,
$1,000 in excess of any previous
.nuaI earnings. The company then.
1921, not only successfully held the
it had acquired in prosperous
avs but actually extended its bust
ess. This evidence of stability in a
ear of varying general misfortunes :
,mmends operations for the period as q
sufficiently secure basis for an oper-
ING nronhecv Tho showing is n dis