Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-01-15
Utilities Chief Tells
Of Rate Schedule
Difficulties in State

Especial to the kennebec JournaD
Auburn. Me-, Jan. 14.-Frank J..
McArdle of Augusta. chief OF the
rates and schedules department OF
the Maine public utilities commits
sion. in an address here today at
meeting of the Maine Water Works
Association, said that managers OF
water utilities must fully appreciate
the many underlying difficulties and
principles involved in formulating
rate schedule that shall be reason
able and just to themselves and their
customers.
"The schedule may be considered
as yard stick or instrument where
by the company undertakes to col
lect revenue from those it serves"
continued Mr.. McArdle.
"While much consideration and
study may be given to the compila-
ton of rate structure, the applt-
cation thereof requires the close at
tention of the management, SO that
it may be determined whether the
different classes of service are pay
ing just and reasonable proportional
amounts. In other words, the man
agement of a water company or dis
trict should not rest with the BELIEF
that rates once established are all
that may be desired, but should, with
the passing of time and with the
experience obtained from the work.
ing of the rates, continue the rate
study.
Another managerial duty is in
keeping in touch with the custom
ers' demands and services. This
M ~ nf tho I1carC' fyfr1rnC
which should be taken at such pc
RODS as may be deemed advisable.
''As reasonable rates are neces-
sary for the production of adequate
revenues, so it may be said that
proper regulations or conditions gov
erning the establishment and contin-
uance Of services are an important
factor.
"Ordinarily, 1t is presumed that
the utility has the right to formp-
late its methods or practices, and in
the exercise of its right due care
must be taken in order that the con-
ditions prescribed may be for the
protection not only of the company,
but also it's customers.
"a general discussion of the nu-
merOus regulations now in force
would involve task which may well
be avoided at this time. Experience
has demonstrated that there are a
few particular regulations or re-
quirements which are the cause of
much litigation. One regulation is
that governing payment for service.
1t may be that the difficulty arises
from or is due to the fact that the
company fails to properly register
each user of it's service and fails
to maintain proper check of those
using water and the extent to which
the use is made.
1t may also be said that II has
developed on many occasions that it
is the belief of the water COMPANY
that it is protected, in that should
tenant fail to make payment. the
landlord or property owner is liable.
rms and similar opinions have led
10 decisions of the court and 1t has
Deen held that under common law
rights. the public utility has it in
lts power to demand a guarantee or
payment in advance.
Publicity
In some sections of the country
water companies have come to he
neve that certain amount of pub
hcity or distribution of information
to Its customers goes far in estab-
l1shing confidence. Every well-in-
tentioned citizen is Interested in tho
system supplying his needs and
should understand some of the prob
lens of the plant. We know from
experience that a community holds
views concerning the water supply,
when an opinion is once established
1t Is very difficult to change 1t.
THE statement has been made
that the usual attitude of the public
ABOUT its water supply falls into two
distinct types. Either the public is
OF the opinion that the supply is
very bad, or there is a sort of belief
that the supply is the best that can
be obtained. These attitudes are
wrong, and it appears to rest with
the water management to correct
such situations