, 1926-01-06
new PLAN FOR FINANCING
ELECTRIC LINES TO FARMERS
Eastern Power Company Works Out Table of Alternative
Methods, Based on Number of Customers Per
Mile Successful Thus Far

Rates for electric service on the
farm thai give promise of proving sat
istactory to both farmer and power
company have beer established by the
Ad1rondack Power and Light Corpora
ton Of Schenectady. N. Y. These
rates. which are not any Indication of
what may or may not be possible in
other sections of the country, seem
nevertheless to be a real contribution
toward the solution of this pressing
question.
In the case of the Adirondack com.
Nny. the density of population. the
character OF the country. the kind of
farms served and the cost of mate
rails and Of line construction have
been such that these rates could ap-
ply. Such considerations enter into
every effort to take electric lines to
, farms.
The farmers problem is to get cleo.
trio service at a cost low enough to
make it profitable for him to use it.
The utility company's problem is to
supply the service at a price that will
afford a fair return on the capital in
vested.
No Oisappointments So Far
The Adirondack plan is the culmiua.
ton of two years intensive study. and.
according to officials OF the
no case has yet been brought to their
attention which cannot be taken care
OF under the provisions of its formula.
In fact. the company now stands ready
to extend service anywhere within its
franchise area. The reply, I'VE will
extend service II so many signatures
are sercured." ETC.. SO common with
utility companies to inquiries for SER
vice. is now changed by the Adiron-
dack Company to. w will gladly ex-
tend service for you, and the terms
will be sc and so. In accordance with
u tariff regulations"
The outstanding feature of the plan,
as filed with the New York State Pub
lie Service Commission. is a table from
which 1t is an easy matter to deter
mine the terms of any rural extension.
This gives the minimum monthly bill
ar deposit necessary, according to
the number of customers per mile.
The plan provides for two ways of
sharing this expense. a fiat minimum
monthly bill or a lower minimum
monthly bill plus q cash deposit by the
customer.
Farms operated by tenants where
the owner would hesitate to make a
cash payment TOWARD the line, and
where the tenant would also be reluc-
tant to make a cash deposit to secure
electricity for a farm which be might
vacate in a year or SO. are expected to
favor the minimum bill plan. In the
case where the owner, occupies the
farm. the other plan of a deposit and
a lower minimum bill will undoubted-
iy be favored.
low the Pia Works Out
In explaining this table. John L.
Haley. commercial manager of the
Adirondack Company. pointed out tha.
where there are eight farmers to the
mile desiring electric service, his COM
pany would build the line. without cost
to the farmer. under terms whereby
each farmer would use not less than
50 worth of electricity a month, as ex-
planned above. Where there are six
farmers to the mile. each farmer would
be required to pay a minimum bill of
"a per month or deposit $3.50 with the
company. as part cost Of the extern
sion, and thereby assure a minimum
bill Of SO.
Where there are four farmers to h
mile, the minimum bill would be Sc,
provided the customer does not desire
to share in the extension expense. In
Ease he does. there are three ways
open to him. He can deposit $3.50 and
accept a minimum bill of IS; deposit
1865 and accept a minimum bill of 81;
or deposit $500 and his minimum bill
will be but SO.
Each farmers case is treated indi-
vidually-that is, n farmer in the
sfx-to-a-mile extension can agree to a
minimum bill Of 81. whereas his neigh
Dor can deposit $3.50 and nave a mini
mum bill of SO.
City Rates for Farmers
Service supplied to customers from
these rural ines will be charged for
at the regular city rates. This is an
other point in which the Adirondack
plan differs from others. 1t being the
company's belief that with a low price
for energy the farmer can economical
ly use 1t in large quantities. Other
companies lave felt that they must
charge a higher rate per kilowatt hour
than obtains in the cities or that they
must have a service charge in addi-
ton to so much per kilowatt hour for
all electricity used. The Adirondack
Company believes that with rates on
the farm As low as they are in the
city the farmer can economically use
considerable energy and that this
abundant use OF service will make 1t
possible for the company to extend its
lines to serve farm customers.
One of the greatest obstacles in