The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-08-10
MAY PAY FOR
new MOTORS
Electric Service Companies
Should Bear Expense Of
Change, Board Holds

Electric service companies which
purchase small North Dakota electric
properties and change them from
direct to alternating current should
bear the cost Of replacing motors
!; aud other electric equipment Of con-
: sinners which were made useless by
the change. the state railroad board
held i'm memorandum issued today.
The case came before the board
on appeal by the city Of Coopers-
town, which is seeking an ADJUST
D,ent OF the costs OF replacing motors
and other equipment of consumers
10 use the new alternating current
with which the electric construction
company is preparing to serve that
city.
Other Cases Involved
Although it holds that the case is
not properly before the commission,
aud the memorandum is not to be
treated as decision, the board out
In. the manner in which 1t
i.4.eves such changes should be made
in case the matter is placed square
~ ueiore 1t IN the future. since the
ooperstown cases were heard by the
board, similar cases have been pre-
scented from Hannaf0rd and Cava-
her, according to Frank Milhollan,
chairman Of the board, who prepared
the memorandum.
Citing the fact that the same issue
has been decided by railroad boards
IN other states, the memorandum
says: I'VE have not heretofore
,.assed upon a matter Of this nature
because Ut the fact that in all in.
stances the utilities have effected
,At tvVNnv ~. IA
niuricipalities and the consumers
thereof 81 that the issue has never
been formally presented to the COM
n,issiOn."
Continuing, it says: 1--WE are
further Of the opinion that public
utllity may not make change from
direct to alternating current service
without first having obtained the
approval Of the board Of railroad
commissioners. Decisions by the IL
I,nois and Wisconsin commissions
have held that the public utilities
making the change from direct to
alternating current should purchase
the obsolete equipment at its de-
: prdciated value and laid down rules
Tor establishing such value" the
memorandum said, and indicated that
the North DnkOta commission will
take that view.
Consumers Deprived
It is held that electric consumers
have purchased equipment on the
assumption that the direct current
was permanent and that to change
The type Of service would in effect.
..IgSs de priving those consumers Of the
use Of their property.
80: The memorandum suggests that
eIErtric companies making such
ckanges first apply to the railroad
boarl tfor permission to- make the
change and that they accompany such
applications with m offer 10 bear
ne costs " making the change IN
the manncr outlined by the Illinois
commission or in some other cquit-
able manner. This outline Us made
Il part Of the memorandum.
The commission then suggests that
tho cost Of making requirements be
treated as an operating expense
and ah.ortised over y period Of 10
years" The effect Of this would be
slightly higher rates until the COM
,unics had recovered the replace
lncnt cost hut would relieve c0nsum-
-esrs Of the immediate expense of
making the change. In the case Of
several individuals involved in the
Cooperstown case this would amount
to $500 or more, the memorandum
states.