Evening star., 1924-12-30
CHEAPER ELECTRIC
CURRENT FORECAST
Increase in Users and Lower
Plant Costs Basis for
Lower Rates.
BY j. C. ROYLE.
SPECIAL D;spatch to The Star.

SPECIAL Dispatch to The Star.
NEW YORK December 38.-The
number OF natrons purchasing electric
rover for lighting and other purposes
from central power stations has in
crelsed tremendous in the last two
years. This has been due In large
part to the tremendous volume Of new
building which has added hundreds of
thousands of structures al cost well
above 10000 oo0,000 in that period
There are. nearly 1000, 900 more Gus
toners on the books of the power
companies now than there were two
years ago. On January l, 1928, the
total number of customers was H.,
70e,S6s On January /, 1924. this num-
Ter had increased TO 14.520,0S7 Since
that time the increase has been at an
even more rapid rate.
Much MoJe Current Used.
OF far more importance than the
increase in the number OF customers,
however. has been the increase in
the amount Of current which those
customers have used. The addition
Of each new customer means to the
electric service company necessity
for an investment of S351.30, accord
ing to the latest available figures,
In 1928 the value Of plant and equip
ment necessary to serve the 1909
868 was conservatively placed by
Government investigators at $4,465.-
ol5,691. In 1922 the total revenue
Of the central station companies was
s1,O72,119.0s3.
Costs Are Reduced.
OF this sum, the largest single item
was represented by the returns from
the 1890, 600 customers for domestic
and commercial lighting current and
for domestic power. This amounted
20 S507,77S,604, or $41.40 a customer.
BY January !, 1924, the number of
customers for domestic light and
power and commercial lighting cur
rent had increased to 13,9S6.77S, and
the rate of increase In the last II
months has been even greater.
This increase has cut down the
amount of capital 1t is necessary to
invest in plant and equipment for
each customer to a marked degree.
with corresponding increase in the
rate of return on funds so invested.
Betterment has not been confined to
those factors alone. The amount OF
current consumed and paid for by
each customer has increased without
increasing the cost of producing that
current in anything like the same
ratio.
Better Equipment Is Factor.
This has been due to the wider
use Of labor-saving household ap-
pliances, especially those of refriger-
alton. In the larger centers the
equipment of new houses and apart
ments with electric refrigerators has
become the rule rather than the excep
ton. The comparative cost of the use of
such equipment as compared with ice
Vi Wi hnt In
electrical engineers say 1t Is slightly
more expensive than for the old type
ice contaiHer. This is counterbal-
anced however by it's convenience and
other advantages.
So extensive has the use of these
home refrigeration plants become
that central power stations have had
to organize special service stats to
make prompt repairs and adjustm ents.
so that pershable comodities shall
have no time to spoil.
Lower Rates Predicted.
These factors are all tending to-
ward a readjustment and lowering of
rates for electric current to the con-
sumner and for increased use OF sd-
ditional current The public service
companies must receive a fair and
adequate return on their investment
cannot secure the funds necessary to
finance new installations and replace
ments. But II the customers increase
and the amount necessary to invest
per customer decreases and the
amount of current used and paid for
yiulds a greater net revenue, they
can afford to readjust their rate on
a different basis than that now main
tanned, according to experts in the
power and lighting field.
Growth Is Tremendous.
Many of the latter expect almost
as marked development from in
creased use OF domestic and COM
mercial current in the next few years
as, took place in the period after
September 4, 1882, when Thomas A.
Edison opened the Pearl street, New
York, central station with a load of
400 lamps. One single unit in the
present He'll Gate station Of the New
York Edison Company will light
100000 25-watt lamps. In that first
station IS men were employed. The
lighting branch of the present cleo
trical industry employs over 10000
men today.