The Birmingham age-herald., 1922-09-24
OUTSIDE BIDDERS MUST BE CALLED,
 TEXT D|SCLOSES
Primary Extensions as Much Duty of Company as Sec- ondary Extensions, De-
 cision Says

An official copy of the recent rul- ing of the Alabama public service commission, handed down September 19, requiring public utilities com panies of the state to make their own extensions, was received yesterday by City Attorny w. J. Wynn. A con ference was held between the city attorney and William L. Harrison, commissioner. of public utilities, at which this ruling was analysed. Fol lowing this conference joint state ment was issued embodying the in depreciation of the commissioner and the city attorney of the official rul- ing.
 In addition to the advantages
 to the domestic consumer Of
 gas which were outlined in Com-
 missioner Harrison's statement
 of Thursday, another Is disclosed
 in the official ruling. It is that
 of requiring the utilities conn
 pany to call In outside bidders,
 when an extension is contemplate
 ed, instead of relying solely on
 its own estimates, as is at pro-
 sent the case. Reasonable and correct estimates arc thereby as-
 sured, state the city officials.
 With reference to primary ex- tensions. that is. those involving the extensions of the cdmpany's lines into new territory. the ruling of the public service commission holds, ac- cording to yesterdays statement that it is as much the duty of the utilities company to provide primary extensions as 1t is to provide ex- tensions to a group of individual con- surers in a district already served that is. secondary extensions.
 Based On Average Cost
 The Commissions further decided according to Commissioner Harrison end City Attorney Wynn. that the cost of any single extension Into new territory should be based on the average cost of serving the city as a whole, and not on the cost ot serving that particular locality. since such cost. due to extraordinary cir cumstances or conditions, might be excessive and unusual.
 Thus. says the statement from the city offices. 'it appears that the Commission has decided as to primary extensions, first, that 1t is the duty If the utility to make these ex- tensions and that 1t will be required to make them. Second. that the cost of making these extensions cannot be considered alone. built must be considered in connection with the cost of the secondary extensions as well. so that the utility will not be permitted to take the fat territory and refuse service to the lean ter ritory.
 Principles Settled
 "The Commission was of opinion that as to the primary extensions under consideration it did not have sufficient definite data as to the number of gas or electric consumers and as to the cost of making these extensions to lay down definite rules and regulations. But the principles underlying the making of these ex- tensions have been definitely settled and announced by the Commission. and all that remains to be done Is for the outlying communities such as Pratt City. Wylam. etc. to put their petitions in definite fern and give to the Commission definite and certain data as to the number of consumers who will obligate them selves to take this service.'
 With reference to extensions of electric lines, the public service com mission stated that they were in need of additional data which they have ordered the utility to furnish within twenty days from the date of the decision. It Is intimated In the commissions ruling, however, that the decision in the matter of electric extensions will be in line with that regarding gas extensions. according to city authorities.
 Provisions of Ruling
 In other respects. the ruling of the state public service commission is substantially as outlined In Com missioner Harrisonts statement of Thursday. It provides. in the case of domestic consumers. for an in crease from $50 to $s4.30 free ex- tension per customer. the advancing by the consumer only of the excess of the estimated cost over s94.30; the immediate refund to the con- sumer of any excess of money paid in by him over the actual cost, the payment of six per cent interest by the utility company on consumers money used, and the elimination Of the five-year period of repayment to the consumer.
 The recent decision of the Ala bama Public Service commission Is the result of fight by the city of Birmingham for a revision In the rules of the Birmingham Railway, Light and Power company regarding financing of their extensions. The city appeared before the Alabama Public Service commission on July 15. 1922, represented by Commission CT William L. Harrison and City AL torney ". J. Wynn.
 The city held that the present rules of the utilities company were adopted during the war period 10 meet a situation which was apnor- nal. and that they were not now necessary. The public service com cission, sustained this contention or the city verbatum.
 The decision of the public service commission was directed not oniy against Birmingham Railway Light and Power company, but also against the Alabama Power company, the Montgomery Light and Water com pany and the Mobile Electric com pany. The rule of the Birmingnam Railway, Light and Power company was used. however, as common H. lustration.
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