Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-26
The New Gas Rates.


The Public Utilities Commission has
ordered sensible changes in the gas
rates proposed by the company, and the
new schedule is as satisfactory as any
that continues to be based on the valu-
alton Of 1917, plus additions and bet
terments. To attack the new rates in
wolves an attack on the rate base, which
remains unchanged, and is not directly
concerned in the present issue. The
new rates should be regarded merely
as an incidental benefit to the public
resulting from the company's policy in
popularizing the use of gas. Whether
they are still too high, despite the re-
auctions to affect the bills of the ma
iority of consumers in the District,
depends upon the adequacy of the
valuation. The Public Utilities Com
mission will doubtless take this under
consideration later and in its discretion
may order a revaluation.
1t is well to remember that the gas
company has come forward voluntarily
with its new schedule of rates. The
Public Utilities Commission and would
not be Immediately effective if the COM
pany had not offered to make them.
The commissions duty in studying the
new schedule has been to look a gift
horse in the mouth, not only for the
purpose Of finding out what the motive
behind it is, but to make sure that 1t
will not develop dangerous tendencies
and cavort of in some unexpected
direction to the sorrow and grief of the
beneficiaries. The gas company has not
come to washington disguised - q
philanthropic organization determined
to lower the cost of living by reduc-
ing the price of gas. 1t has come here
to make effective a sound business
policy, the basis Of which is to popu-
larize and to increase the use Of gas
by lowering its cost. 1t is willing to
gamble on the success of this policy to
the extent of a $360.000 loss in gross
revenues which would result if the new
policy does not succeed ana the con-
sumption of gas does not increase. But
it would not take the risk If 1t were not
pretty sure that it viii win.
The changes In the company's sched-
ule ordered by the Public Utilities Com
mission tend to remove the chief COM
plant against the offer first placed before
the commission by the company. In
stead of permitting extreme reductions
in domestic heating-plant gas at the
expense of the small consumers, the
commission decreased the amount OF
reduction for heating gas and spread
It over the reductions applying to other
consumers. The much discussed mini
mum charge Of rs cents is approved by
the commission. but much Of the OBJ
lection to that rate is removed by the
commissions order permitting the con-
sumner who pays this minimum rate to
use an actual rs cents worth Of gas,
instead of the maximum of 500 cubic
feet originally proposed by the gas COM
pany. Seventy-flve cents worth of gas
amounts to 1872 cubic feet, which the
consumer is permitted to use when he
pays the minimum charge.
As it affects the commercial and in
dustrial use of gas, the new schedule
will bring about some reduction. An
other beneficial reform in this case,
however, is that the consumer is charged
for the actual amount Of gas he uses,
the cost scaling down with additional
use, as In the case Of the telephone and
electric light rates. Under the old
schedule. it sometimes paid the large
consumer to waste gas in order to push
his consumption up to point where
lower rate would apply and thereby
reduce his total bill.
The only consumers who will pay
more under the new schedule are those
who now pay less than rs cents month
for gas. There are $4,000 Of these in
the District, most of them the occu-
pants of small apartments. Their In
crease viii be the difference between
what they now pay and the minimum
rate Of IS cents. Those who pay be-
tween rs cents and $3.50 under present
rates win receive no reduction, and
there are 1900 Of these consumers In
the District. The reduction in rates
will affect some SO 900 consumers whose
bills now exceed $50 a month. The
average gas bill will be reduced by IS
cents. the majority of consumers will
benefit and those who pay an additional
few cents will not be seriously hurt.