The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-03-30

through reSuldIlOn Dy Cne SIdCe COLI
missions of the courts.
Public enterprises on the other hand
are everywhere demonstrating that
through public ownership lower rates
may be and are being secured. An
enormous amOut of information is now
available in demonstration of this fact.
We can refer to few striking ex-
.aIhples and refer our members to the
sources from which further informa-
ton and data may be secured.
Cleveland, Ohio owns and operates
a municipal light and power plant.
The base rate is &c per XVIII. The
acreage rate charged by the private
companies throughout the United
States is around &c per XVIII or three
times as much.
Cost Of 40 KilOwatts per Month. The
average amount of electric current
used by the ordinary family is around
40 XVIII. per month. The cost of that
amount or service at rates charged |
by municipal plants as compared to !
private affords an interesting and |
conclusive comparison.
United States Senator r. B. Howell |
Of Nebraska, in an address delivered |
before the National Republican Club |
of New York City, made a study Of
the rates charged by private comnan-
les for electric current in more than
40 different cities in comparison with
those charged by the municipal liant
in Cleveland, Ohio, and also in six
cities where the private companies
were in competition with municipal
plants. These comparisons were on
the basis of the rates given by the
National Electric Light Association
in its Rate Book for 1924. AS some
changes are always being made in
rate schedules, and some are so CON-
plicated to be almost impossible of
comparison, these rates may not be
eaXct in all respects at the present
time, but may be taken as substantial
ly representing the situation.
This comparison brings out two
facts. First, that the rates charged
by private companies in the cities
mentioned are from so to over 3OGi
per cent higher than those of the mu-
HGcipal plant in Cleveland, and
Second, That wherever there is
municipal plant in competition with
private plant the rates of the private
companies are far below those charg-
ed by private companies operating in,
cities where there is no municipal
competition.
Tacoma, Washington, where the
city owns very successful hydro
electric power system, 40 XVIII. cost
even less than in Cleveland, viz: 81 10.
In TACT, Tacoma has in some respects
the lowest rates in the country. The
city began its municipal plant in 1912
and Immediately reduced rates. These
rates were again lowered in 1915. and
again in 1926. The base rate is now
41ac per XVIII. This applies to the
first 40 kilowatts depending upon the
floor space of the house.
After that the rate drops to lie per
XVIII. and there is third rate at 1ac.
These are combined cooking, lighting
Fad. accessory rates and are so an
Piled that many of the small houses
get the lie rate after using 20 XVIII.
of service. And eyrey little home gets
some of the 1c rate. A small home
using 40 XVIII. would pay 412c for
the first 20 kiloWatts and lie for the
next 2O k1lOwatts so that the 40 kilo-
watts would cost $1.10. This. as
NOTED above, is a little lower than the
Cleveland municipal rate and is. we
believe, the lowest rate for domestic
service IN the, United States. There
is also a spcial rate of lie for heating
In combination with lighting and cook
ing which, after 800 kilowatts. drops
TO Tsc. Thisara is, SO low that
neatlng as well as cooking and light
!nglwith electricity is rapidly increas-
ing In Tacoma. There is said to Zoe
2'fyO homes using electricity for heat
ing and approximately 1000 electric
ranges In use in the city.
rover Rates Also Low. 1t is often
claimed by the propagandists. of the
private power companies that while ii
may be true that domestic rates are
lower with municipal plants than with
private, the power rates are higher
But this is disproven. by the facts
rover rates are also .lowergunder nsu
nlclpal plants than private. a@'
There was published in the graSemf
Times of Friday, April Is, 1927. /:
chart and table which set forth III,
findings of the Chambers eff Cor,
merce of Oakland, and San francisco
checked up by Kenneth Harlan q mn
nlclpai rate expert of Tacoma wifi
reference to power rates in variolj,
cities of the United States. In thi
case the comparisons were made uno,
tne basis of "actual monthly bills fo
an electric power load of Is kilowatt
SSS:5) horsepower, based on a 3OG
load factor, or $500 kilowatt bonr
V'zS0 horsepower hours)". Thi
amount of power, according to tbes
finding, cost as follows:
Tacoma, municipal plant ... S 53 2
New Orleans, private ...... 21O D
Chicago, private ........... 2O4 a
o. DoSSoh, private ..,...t--.--..-.----.. 1872
st. Louis, private ...-.... 157O
pittsburgh, private .... 136 &
Portland, private -........... 121 4
Seattle, municipal competition 112 3
Oakland and San Francisco
municipal comp. pending LOG.
Los Angeles, municipal comp. 900
The differences in cost in some q
these cases are so great as to be reall
Astonishing. In Chicago, for example
industrial power of the amount men
toned, purchased of a private com
pany, will cost $151.15 a month .
Sl,82OSO year more than in Tacom
under municipal ownership. In Ne,
Orleans the difference is even greater
VIZ: $15700 a month or 81 1884. 90
year more than in Tacoma. Even i
Portland, less than $50 miles away
and under very much the same condi
ions, power costs nearly third NOR