San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-09-02
COMMISSION
UPHOLDS Gas
RATE APPEAL
San Antonio Price Seized
ule Will Remain
Same.
CASE THRASHED OUT
City's Peak Demand Fig
ures Prove Err
r0ne0us.
CASE THRASHED OUT

city of San Antonio for domestic con.
| sumption, was granted by the Texas
Railroad Commission in a decision an
nounced late Saturday in which the
commission held that the present rate
of 81 1-2 cents was fair and not TN
reasonable.
The city of San Antonio proposed.
by an ordinance passed last December,
to reduce the price of gas to OF Il
cents net per 1000 cubic feet.
The utilities company appealed from
the action of the city commission of
San Antonio on the grounds that such
q reduction would not yield Iair
return ON the investment in plant and
equipment, and now the railroad COM
| mission has sustained this appeal.
1t was shown at the hearing by the
utilities company that under the re-
duction in rates proposed by the city
of San Antonio, the total revenue of
| the company annually would be S549,
2S5, while the operating expenses and
fixed charges are S56S,614. thus re-
sulting in a deficit of S19.3SS. while
under the existing rate of "a IL cents
| the total revenue would be S1O0,0 24
and after deducting operating expenses
of $56S,674 there would be profit
of S140,S50.
At the hearing the city of San An
tonic contended that the daily peak
demand for gas was 20,S43,0O0 cubic
| feet, while the testimony showed that
only 100000 cubic feet daily po-
tential capacity was now connected to
the transmission company's lines,
which would yield only 100000 Gu
bic feet daily.
Company Taken TO Task.
"While the evidence shows that the
transmission company has recently
made an effort to increase its gas
supply and has increased it TO some
small extent not entirely commensu-
/ rate with what was expected of it
under its coEtract with petitioner
utilities company. The transmission
company even though it has the
strongest pecuniary motive for secur-
ing an ample supply, has, it appears
not been as diligent as it should have
been in its search for gas" said the
| commission.
Petitioner cannot, we think, be ex-
pected to prospect for gas as it only
stands in position to receive the gas
when it is delivered at the city gates
under its contract with the transmits
sion company"
After eliminating a history of the
| case, the decision of the railroad COM
mission follows:
at is the judgment Of this commits
sion, based upon the evidence as to
the experience OF other cities having
long history in the service of natural
gas, that if adequate supply of such
gas Is obtained which gives promise
of continuing reasonable time, petit
toner could extend materially the
purposes for which the gas could be
used and, under a lower rate, increase
its sales to a volume which would pro-
of supply of natural gas at this time
renders a decision in accordance with
| such judgment impossible.
at appears probable, however, that
the reduction in the cost of gas to the
consumer by reason of the greater
/ heating value of natural gas over man.
ufactured gas, together with the re-
duction in rates to the present level.
will encourage more extended use of
gas, especially during the coming win
| ter for house heating, not in an
amount, however, that would be used
under lower rate, but enough TO
produce some additional revenue over
the field last winter when natural gas
was turned into the lines after the
householder had made arrangements
for winter heating.
Experience alone can prove or dis
| prove this. The rate now in effect. n
voluntary one, is more or less tenta-
tive. The forecast of domestic sales
| upon which the rates of return have
been computed herein does not anuci-
pate any increase in house heating
over the experience of petitioner with
artificial gas during the winter Of
1922.
Such forecast was based upon the
results of the first few months use
of natural gas. period Of change ant
disturbed conditions, an experimental
stage. Time alone can satisfactorily
demonstrate whether or not the rat,
established will prove remunerative o.
not. (2S Corpus Juris. 57S). So it il
here.
Therefore, it is our opinion. base,
upon the reasons set forth herein. par
|
ent prospective revenue does now equa
the agreed fair return of per cen
upon the value Of the property SEE on
by respondent and generally under a
existing circumstances that the rate
now being charged by petitioner ar
not unfair to the public, and shoul
| not be reduced.
I'VE are further of the opinion tha
. petitioner should be relieved of il
bond which it was required TO execut
as a protection to its consumers in ii
matter of refunds in case a lower RAJ
should be established by this COMM
sion than the rates now maintaine
in effect under said bond and now b
= ing charged"
: Orders Are Issued.
4 Following the decision, the commi
n sion issued the following order:
: "In accordance with decision tn
e date rendered, it is ordered by Il
J. Railroad Commission of Texas tn
the petition of appeal of San Anton
Public Service company in cause \
D-1310 before this commission. wher
/ in petitioner sought TO have set ash
= an ordinance of the city of San A
d tonic attempting 10 reduce its rat
;. for natural gas below the schedu
S placed in effect by petitioner at d
cember /. 1922. be granted; and tn
the San Antonio Public Service co.
). pany be allowed to continue to char
L for natural gas the following schedu
= of rates:
= "s105 per NJ cubic feet for the fir