Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1922-02-27
LOCAL POWER
PLANT HEADS
FILE REPORTS
Public Service Com
mission Starts
Hearings.
DEBATE ON RATES
Financial Standing of
Company Is Given
Out.

That the indianapolis Light and
Heat Company is making a return
considerably in excess of that fixed
by the public service commission as
Reasonable, will be one Of the conten-
lions of attorneys for the city of In
dianapolis and for Indianapolis power
users In the electric rate hearing
which was started before the public
service commission today.
The annual financial statement Of the
Indianapolis Company, expected to be
fled some time this afternoon, was ex-
pected to show that the indianapolis
company has been charging 6 per cent
to depreciation, a fl twice as high
as that usually allow oy the commits
sion. With a depreciation Of 8 per cent
instead Of per cent the report was
expected to show return Of IL per cent
to IL per cent. The commission has held
that Z per cent is a reasonable return
under those conditions.
The annual statement Of the Merchants
Heat and Light Company, Just filed,
showed a net income for The year Of STA
692. The operating revenues, according
to the statement, were $2,717,459 and the
operating expenses amounted TO S1,941,
0S1. This left gross income Of S796,971,
from which were deducted taxes and
other fixed charges, making the net in
come figure S414,50
POWER USERS PETITION
FOB HEARING.
hA onffv . IN Of
the hearing were based entirely on the
petition OF power users for reduction
IN power rates. Such a hearing was
'ktarted some time ago, bat was discon-
ainued. The new hearing started where
tha old one left Of The commission is
expected to take up later the subject OF
rates to, consumers other than power
users
Charles O'Brien Murphy, vice president
and general manager of the Merchants
Heat and Light Company, was the first
witness. He estimated that the revenue
of the company under revised power
rates fled last July would be $2,754, 900
in 1922. The new rates, he said, viii pro-
duce approximately $4,000 a year more
than the old ones. Mr.. Murphy ex-
pressed the opinion that operating ex-
penses this year will not be lower than
those of last year. He pointed out in
cidently that a mine strike would in
crease operating expenses.
SOME DISCREPANCIES
NOTED.
The discrepancies in some of the power
rates were brought out by Mr.. Murphy's
answers to questions on cross examina-
ton. He said that the Merchants Com,
pany is supplying power to the Mer-
chants Contracting Company, the Citizens
Gas Company and the Interstate Public
Service Company at a rate of approx
mately IA cents a kilOwatt hour, while
the commercial rate runs about 3 cents
q kilowatt hour" The Merchants Con-
tracing Company, he said, supplies
power to the CIaypool Hotel.
Henry Knaf, auditor Of the Merchants
company said that in his opinion there
will be no decrease in operating ex-
penses and taxes this year. Kendall F.
Dickinson, Grand Rapids, a utility engi-
. neer, presented to the commission a rec
kOrd Of power used and amounts paid by
'alI the customers of the company in 1920
Questions on this report were deferred
until attorneys had time to study 1t.
At this time the Merchants company
rested its case and w. J. Huddell Chi
cago, a consulting engineer, was placed
on the stand by the Indianapolis com
pany. He explained the differences be-
tween the old power schedule and the
new one.