The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1926-11-20
Statistics of Public Service
Commission Blast Utility
Argument.
RATE INCREASE FEARED
Council Considers Purchase
of Companies Here.
By William l.. Toms

Despite the cry that municipality
h owned utilities are impracticable
Hhgures from the public service COM
mission show that domestic con-
sumers of electrical energy pay less
on an average in cities where the
plants are public owned than where's
they are privately owned.
Since fling Of the petition to
merge the two indianapolis compa-
MES distributing electrical. energy,
the city council has before it an or
dinance providing purchase of the
two plants by the city.
Due to the proposal Of the merger
promoters to issue securities exceed
ing S55,000,00 on property appraised
for taxation at approximately $18,-
100000, fear has been expressed that
rates Ultimately will have to be
raised. How the new company can
pay interest and dividends on such
high capitalization, under present
rates is more than the average ma
thematician can conjure.
Incidentally the average rate
each domestic consumer of electrical
energy now pays is $685. which Is
comparatively high. The local class
d consumers, those whose consump-
ton is highest, reaches an average
of $7S4.11 a month. There Is no
other city in the State whose popu.
lat1on approaches that Of Indian
apol1s, thus eliminating true com.
parison.
Cities, Rates Shown
OF the nine Indiana cities ranging
, in population between $4,000 and
100000, Kokomo and South Bend
pay the highest average monthly
bills, 1912. Kokomo is served by
the Northern Indiana Power Com
pany, an Insull-owned utility. Other
lcities in the group and the average
monthly amounts domestic consum-
ers pay:
Ft. Wayne. s195; Evansville.
$2.63; Gary, 1921; Terre Haute,
s2.86; Hammond, $3.50; South Chi.
cago, $3.50, and Muncie, 1925. All
Of these plants are privately owned.
OF the cities between 10000 and
$4,000 population, Anderson is the
largest supporting a municipal cleo
trio light plant. It's domestic con-
sumers pay an average monthly bill
of $3.50 Richmond has the next
municipal electric light plant and
pays $2.54 a month. Consumers at
Elkhart, where the plant is privately
owned, pay domestic bill Of $3.12
month, which is noticeably higher.
At Marion and New Albany. both
served by a corporation, patrons pay
$2.92 and $500 respectively per
month for domestic electricity.
Logansport's municipal plant. how
ever, charges its patrons an average
monthly bill of only $2.59.
The following average monthly
bills prevail in the following cities
where privately-owned plants oper.
ate:
v1ncennes, 1882; Newcastle, $2.94;.
Huntington, $3.44; Whiting, $3.50;
Goshen, 1884; Seymour, 1924, AMI
Valparaiso, $500.
In the following cities, where elec.
trio power and light plants are mu-
nicipally-owned, these average
monthly bills prevail:
Peru, $2.73; Frankfort, 1881, and
Charlottesville, $2.46
Cities Lower
or the twenty-six Indiana cities
whose electric light bills have been
compared, eight pay lower average
Smonthly bills than indianapolis, so
far as domestic consumption Is con-
cerned. This Is in the face of the
argument that larger population
means heavier consumption and
cheaper production. hence lower
rates.
Municipal operation of electric
utilities is considerably more ex-
pensive, tits shown in figures based
on annual reports on file with the
commission, yet the bills In but few
cases exceed those In cities where
the utilities are privately owned.
In. chart prepared by the com.
mission the distribution of every
500 Of revenue from electric light
and power plants, both private and
municipal, is shown. 1t follows:
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