The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1924-05-26

proceeds to distribute the total amount neces-
sary to operate these Properties and to pay
a Reasonable Return upon the value OF the
Properties over the total service rendered by
them to the Public, in the proportion which
will distribute the cost in the fairest way,
over all the customers. This process is called
rate-making.
This distribution is made over all the Gus
toners on the basis Of the amount Of use
which each of them makes of the service The
Telephone User is charged in the last resolu-
ton, for the number of times that he uses his
telephone. The Street Car Patron pays much
every time he rides. The Water User pays &C
cording to the Quantity of Water which he uses,
either roughly averaged or correctly measured
by meter The Gas User pays so much per
Thousand Cubic Feet of Gas Consumed, again
measured accurately through meter The Elec-
trio Power User pays much per Kilowatt
Hour, which is the Measure of Electricity, this,
too, accurately measured by an electric meter.
The Demand which these Users of Public
Utility Service make upon their respective serv-
ices is by no means Uniform. They vary so much
as to be marked by many different char
aeteristics.
For instance, some people use their Tele-
phones many more times in the day than the
average use Examples of these differences are
apparent IN the use given telephones in
Places of Business as compared with Residences.
Hence there is classification into the Business
Rates and Residence Rates
For instance again, some people make de-
mands for Street Railway Service involving the
use Of two street car routes to complete their
trips in which case a Transfer Charge is made
in addition to the Regular Single Fare; or they
want to ride during the hours of the night time,
for which they are charged the Owl Car Rate,
which is usually double the Regular Fare.
Some people, again, use Two Dollars Worth
of Gas month for domestic cooking and heat
ing; and some Industries use Thousands of Feet
of Gas Day for Heat-Treating Purposes. One
customer costs as much as the other for Book
keeping, Collection Supervision and the like, be-
sides which the Big User is keeping the Plant go
ing during the hours when Domestic Cooking is
not going on So q lesser rate is made for the
Quantity User of Gas.
In the Use of Electricity there is a wide range
of difference in use. Some people use Much; some
other, Little Some use Continuous Quantity;
some other Quantity which Varies in Amount,
by Hours, Days, Weeks or Seasons. Some limit
their uses to hours when most other people are
not demanding service while others ask most
service when everybody else is doing the same
thing. Some use with uniform regularity, while
others ask Service only once in a while and with
no notice.
These conditions of the Public Utility Service
make it impossible that the same rates shall be
applied to all users and all quantities of service
used.
They lead to Classification of the Kinds of
Service Rendered, and the Making of Rates
which Take into Account these Various Kinds
of Demands made upon the Utilities
Some of these Demands cost the Utilities
more to Satisfy than do Others and it would not
be fair to charge the customer using the more
Cheaply Rendered Service part of the cost Of
Supplying the Customer who demands the Serv-
ice Produced at the Highest Cost.
These are all taken into account by the State
in Making Rates for Public Utility service.