The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-01-02
REJECT TPLEA FOR 35PER CENT
BOOST IN WATER RATES; GRANT
162-3PER CENT IN DECISION
Railroad Commission Orders
Special Rate For Use of
Water on Lawns
ORDER IMPROVEMENTS
Find Valuation of Plant Is
S29O,OOO - Higher Than
City Lower Than Claimed

Clty Lower ln6n OldlmeU
The state railroad commission, in
a decision handed down in the Bis
"rck Water Supply company case,
,lered decrease in rates for water
rom the regular rates plus 35 per
cent increase ordered by the federal
ourt to the regular rate increased
Dy 16 2-3 cents, ordered special
rate for water for use on laws in
the summer, fixed a valuation and
ordered numerous improvements.
The commission orders:
l. That the Bismarck Water Sup
ply Co. is authorized, beginning Jam
uary /, 1923, to add 16 2-3 per cent to
it's water bills based on rates exist
ing May /, 1922, excepting that the
rates shall be changed to provide
that water rates from May Is to
October Is for water used on lawns
trees and gardens, shall be Is cents
per 100 cubic feet over and above
the average consumption of water
used from October Is to May Is, pro-
viding that the first 400 cubic feet
shall be charged at the rate Of &c
1 cents per 100 cubic feet with a min.
imum charge of $1.00. providing that
/ such rates shall not apply to any
business or non-residential property
2. That the water company shall
I within nine months after date o.
4 the order replace the present H.
i inch supply main from the reser
voir for the distribution system ir
the the city of Bismarck with ar
18-inch main from the reservoir tt
the city. passing the main through
i the booster pump.
Order Filtration Plant.
s. The water company shall with
in nine months install filtration
4 plant, and increase time allowed fol
4 water to pass through battles to per
4 nit more thorough mixing of tht
chemicals with the water.
4. The company shall, within nint
4 months, provide for and install "ar
adequate standby pump of modern
y design and efficiency" for use at thu
4 river pumping station in pumpinl
water to the reservoirs to serve a!
\ supplemental unit to replace tn
4 present standby centrifugal pump
\ s. That the company shall clear
a the west reservoir, quarterly, and th'
y other two as frequently as may re
quire.
Il 6. That the company shall repor
revenues and expenses each .mnoth.
q 7. The commission shall retain
q jurisdiction over the party to chang'
u or modify the rates and charges up
81 on the evidence and facts before th'
commission.
! Value Of Property.
q The value Of the company's prop
II erty without depreciation was fount
by the commission to be 1851 ,109, ant
\ with depreciation $290,649, which lat
y ter figure is used in fixing rates. Th'
III order says:
II with this rate Glow rate for wate
n used on lawns in summer) we arr
81 confident that it will not be neces
n sary to wait for exceedingly dr.!
a years to create a demand for wate
~ for lawn purposes, but that the own
II ers of lawns and gardens will be en-
" couraged to use the water freely fo
4 irrigation and sprinkling purposes
and we feel safe in using an estimat
q ed revenues for 1923, those received
II in 1921, which were SCI ,285.93.. W.
Il have estimated the expenses for 1922
4 at $43,95O, which would leave a ne
n operating revenue available for re
n turn and depreciation of $17,335.9a
q We have found valuation, plu
h working capital ($4,OOO), of 1924, ,64s
n and an eight ler cent return upol
n this would be $23,571.92. From tn
81 valuation of S294,649.OO, should b
E deducted $3,O95.OO for land AM
II $6,56COO for material and supplies
n non-depreciable property, leavinl
n $2S0,994.0O from which to deduc
1-2 per cent for depreciation max
ing $4,2l4.91 to be set aside int
tne depreciation reserve account. l
therefore follows that the compan,
must. earn next year 27,788.S3 owe
VI andEabove operating expenses an
that. at the present rates it will fal
II short just $lO,450.9O Of doing So"
n Changes the Order.
u | The order charges in phrt and con
II firms in part various matters con
tained in the 1920 order. The nev
order revokes the order to the com
pany to increase or fix salary of OF
ficers, stating the commissions pow
er does not extend to the interna
workings Of the company. The prio
orders requiring meters to be in
stalled fof all services unmetered i
v confirmed
NJ With regard to valuation the com
81 mission sits out in tables the con
ficting valuations Of various engi
neers as follows: Comcission's en-
gineer- -cdnstruction cost, $276,430
cost Of repfoduction $44S,295; depre
ciated value $400,SSS. City enginee
original cost. $1ss.4ls. Compan,
engineer-Sos Of production. Apri
/ !, 1928, $dD9, 9,005; cost Of production
5-year avdFage, 1929, $579,849.
The ord dbr asserts that insuAicien
I fire protef tion IL furnished the cit
Of Bismi k by the utility.