Evening star., 1928-11-03
Small Consumers Would Pay
More and Large Users Less
Under Proposal.
THREE-PART SCHEDULE
WOULD GRADUATE COST
Redistribution Planned if Utilities
Commission Approves Increase
in Companies Values.

An entirely new gas rate schedule, In
which the small consumer will pay more
and the large consumer less, probably
will result if the Public Utilities Com
mission approves the application Of
the Washington and Georgetown Gas
Light Cos. for a higher valuation,
it was learned today. Hearings on the
valuation application have been in
progress for several weeks.
A spokesman for the company de-
clared that an effort would be made to
introduce what is known as the three
part rate" which is a modern rate con-
struction used in several Western cities.
One of the main objects of this rate is
to make the small consumer pay for
the cost of his service. The Washington
Gas Light Co. now charges at the rate
of 81 per 1000 cubic feet for the first
100000 cubic feet per month. Under
this schedule, the company claims,
thousands of customers get their gas
at less than the cost of maintaining
and reading a meter and drawing up
and collecting monthly bills.
Although no estimate as to the
minimum charge to be asked could be
obtained, one of the examples offered in
support of the new plan was the rate
at New Rochelle, ". Y, where 70 cents
is charged for the first 100 cubic feet
of gas. After the first 100 feet is used
the rate drops materially so that large
consumer of gas pays considerably less
than he pays in Washington. There
are several steps in the three-part rate
up to 1000 cubic feet, and on every
1000 feet thereafter the price declines.
Seeks to Sell Appliances.
The company spokesman explained
that the new rate sought would be held
out as an inddcement to consumers to
buy various gas appliances, such as gas
furnaces, in use in Washington now,
but they pay the regular retail price
for their gas. Under the present rate
no consumer who has a bill less than
5000 a month gets any reduction for
wholesale use. Under the new rate
this will probably be brought some
where nearer to $40
I'VE favor a rate that viii be fair
| for all consumers" the spokesman said,
| land there Is no reason why q Gus
toner who burns 200 feet month
should be allowed to do so at a loss to
the company which has to be made up
in the bill of the man who burns
more"
The present valuation case. accord
ing to the company. is being brought
| in accordance with the law creating the
Public Utilities Commission. The com
pany maintains that the valuation made
in 1916 using 1914 prices is not val
| uation in fact although the company
agreed to abide by it owing to war
conditions until more settled times ar
rived.
Started in 1925.
The company made its first overtures
for a new valuation in 1925. At that
time the Public Utilities Commission
had no funds with which to check the
| company'S appraisals. They obtained
| such funds by an act of Congress
passed In 1926, allowing the commission
| to tax the companies to be valued for
the cost of the valuation PROCEEDINGS,
| the money to be later amortized out
| of operating expenses.
The present proceedings, which are
expected to occupy another two months,
are not a rate case. but the rate case is
| expected to follow Immediately on their
heels.
The valuation of the two companies
now on the books of the commission is
in round figures $17.000,O0O. The valua-
ton contended for by the companies Is
about $3O,0o0,0OO. Should the com
mission grant substantial increase in
the, valuation the company would be
legally entitled either TO an increase in
rates or to redistribution in rates such
as the adoption of the three-part plan
designed to give them more money.
According to the company spokesman,
1t will seek the minimum charge and
the redistribution of rates rather than
seek an increase in the fiat rates.