Evening star., 1924-12-24
CHEAPER ELECTRIC
CURRENT FORECAST
Engineers See Gradual Trend
Toward New System of
Rate Making.
BY j. c, ROYLE.

OiTetai DIspatcn 10 he star.
NEW YORK, December 24-Rates
or charge for electric current pro
duced by central power stations are
going to come down. That is the
conclusion drawn by many electrical
engineers, efficiency experts and man
ufacturers of electrical equipment.
Ihese men say that in all proba
bilfty the change will be put into
effect by the central station corpora
tions themselves, but that IL not 81
viii be done by utilities commissions
The changes, they point out. will
not mean less revenue, but more to
the producers Of power. Nor VIII
they mean that househoIders' bills
VIII be for materially smaller
amounts, but that the latter will get
more for their money. These results
are expected to be brought about b.
change in the system OF rate
making.
Home Demand Cause.
The use OF electrical household ap-
pliances such as household motors,
vacuum cleaners, washing and iron
ing machines, electric ranges and re-
frigerstors, is held responsible for
the trend outlined above. The amount
of current used by this kind of equip
ment is increasing by leaps and
bounds, and the cost Of producing
such current has not increased in
anything like the same ratio.
Few users Of electricity realize
that what they really buy from
central service stations is service
and that electricity is sold to a great
extent as bye product. The cost
of installing and maintaining equip
ment, reading meters. billing and col
lectinS involves usually a greater
amount than the cost of the fuel.
oil and plant supplies used il
generating current.
A central station must be prepared
to supply current up to the limit OF
its installations at any momeRt II
every switch in the territory of Il
station should be turned on stimuli
taneously, the electric energy must
meet the demand in full instantly.
Full load capacity seldom is de-
manded. but it costs nearly as much
to be ready TO fill a possible demand
as If this were a constant factor.
Net Revenue Improves.
Therefore, the increased use II
current by customers of the central
stations yields a relatively higher
net revenue than If equipment is
only partially employed. The popu
larity of household Iabor-saving
machines is providing that increased
use and it is this factor which will
tend to make lower rates possible
and probable
The theory on which rates seem
likely to be changed Is the same that
dictates prices for other commodities
Customers who buy in large amounts
will be charged a lower rate than
those who purchase in small units
just as the purchaser of 900 dozen
shirts can buy them cheaper than
one who buys only half a dozen.
The nearer consumer comes to
utilizing the electrical equipment
furnished him to capacity, the lower
his rate will be.
System of Charges.
This system OF charge has already
made its appearance in some sec
tions. The so-ca led Doherty plan,
now In effect in some cities, divides
the charges TO customers into three
factors that automatically vary the
rates to fit cost of service. These
factors are customers charge. COW
ering cost of installing and main
tanning service entrance, meter read
ing and billing: a demand charge,
determined by the customers install
lation and representing the COM
pany'S investment in equipment nee
essary to supply the maximum oe-
mand whenever the customer may
| call for it; and a kilowatt-hour
charge, determined by the energy
actually used
For example, it would be possible
| TO furnish current to factory using
10000 kilowatt hours of electric en-
ergy n month, or 50 per cent of thr
possible use of equipment at about
/ half the rate it would be possible L.
furnish an equal amount of current
10 500 ten-room houses using only
10 per cent of the energy il would be
possible to furnish them on maxi
mum demand.