Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-14
The Gas Company Case.

The Public Utilities Commission and
Corporation Counsel Bride are showing
commendable thoroughness in their
efforts to get at the root of the transact
ton by which the Washington Gas Light
Company has passed from local control
Good judgment prevents their being
enticed off the trail they are following
by contemplating in advance the pos
sible benefits to consumers that may
result from projected changes of policy
and revision of rate structure by the
new owners. Anticipating such bsnef1ts
is premature until the point at issue,
the legality Of the transfer transaction
has been settled in a manner that
removes all doubts concerning violation
Of the anti-merger act.
Corporation Counsel Bride intinnates
that the statement of ownership sub.
mitted by the new owners does not
close the case. He will certainly be
supported by public opinion in his
determination to identify and reveal the
full connections Of those involved The
inherent dangers that lie in loss Of local
control of an important local utility are
obvious. They justify the continued
examination Of the deal that Mr.. Bride
and the Public Utilities Commission
have in mind.
Peoples Counsel Fleharty believes
that the new owners may be expected
to give gas consumers In the District
better service at lower rates, which is,
Of course, highly desirable. After the
new owners have satisfied the author
tiles that the anti-merger act does not
debar them here, an outline of new
policies and new rates will be ex-
pectantly awaited. Some Of these will
doubtless depend upon the outcome of
the pending valuation case now before
Justice Gordon, or q statement from
the new owners regarding their attitude
toward the valuation of 1915 and the
revaluation which was begun and left
unfinished by the Public Utilities Com
mission. But there is certainly room
for improvement In the present rate
structure. Existing rates for CONNER
cial consumers of gas are based on a
theory containing inequalities easily
demonstrated. Unlike the telephone and
electric company, which charge accord
ing to quantity and class Of service,
lowering the rates as the quantity in
creases, but charging for actual con-
sumption, the gas company penalties
the commercial consumer for failure to
&6oN he ~ lev
rates of 81 thousand cubic feet for
those using less than $4,000 cubic feet;
95 cents for those using between $4,000
and 100000 cubic feet; 80 cents for
those using between 10000 and 100000
cubic feet and IS cents for those using
more than 100000 feet, show rather
glazing inequalities. The man who
uses 495,000 cubic feet a month will
have a higher bill than one who uses
$4,000 cubic feet month, thus max
ing it profitable for him to turn on the
jets full blast and allow several thou
sand cubic feet to go up the chimney
In order to lower his bill. The actual
inequalities have been lessened by the
company's informal practice of adjust
ing bills, so that consumers near the
border line Of rate change are given
the advantage of the lower rate. But
the system of charges should be revised
In accordance with accepted practice in
other utilities.
The new owners are understood to be
considering an effort TO popularize the
use of gas for heating and other do
mestic purposes and in 50 doing would
naturally revise the scale Of rates for
quantity consumption. There may be
renewed agitation for lowering the
B. T. U. requirement, or the heating
quality, of gas in Washington. Such a
change would obviously be accompanied
by downward revision Of rates. as the
higher the B. T. u. the less the guam
tity of gas used, but it should be per-
nitted only upon the favorable testi-
mony Of experts after impartial investi-
cation. Another change in contempla-
ton Is the institution Of q minimum
rate. charge, a practice existing in about
80 per cent of other cities and used
here by the telephone ana electric light
companies, more evenly to distribute
among consumers the cost Of service.
These matters may be taken up In
due time. provided the right Of the
new owners to operate is established
beyond reasonable doubt.
'H