The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1930-05-08
hour Of electrical energy will keep
such a lamp going for 40 hours.

Itemizing the Costs
Assuming an annual average use of
500 kilowatt hours for each consumer.
the cost Of generation for electricity
Will fall between 90 and 1.25 cents
per kilowatt hour. This will be raised
to between IA and 2 cents a kilowAtt
hour by loss Of current In distribu-
ton and for load factor differences.
The cost of handling the accounts of
consumers will add one-half cent and
general costs which cannot be item
lied another half cent. Distribution
costs can be placed no higher than is
cents and that addition brings US to
the inevitable conclusion that a fair
cost per kilowatt hour for domestic
consumers using 500 Nlowatt hours
annually will normally fall between
80 and rs cents. Thus, q scent rate
obviously would provide an ample
margin of profit.
The average rate for electricity
used in homes in the United States
is about Z cents. The average in the
Canadian province Of Ontario, where
rapidly descending rates have greatly
increased the use of electricity, is
about 2 cents.
Substantial reductions of domestic
rates do not. necessarily cause any
lowering Of net revenues because they
invaribly stimulate larger use. But,
unfortunately. the guiding principle
which has been followed In the fixing
Of electric rates has been and still is
to charge for each class. Of service
what the traffic will bear. Great
technical improvements in electric
generation, together with q more d.
versified and continuous demand,
should before this have resulted In q
great reduction in domestic electric
rates.
High Rates Curtail Use
Steinmetz said that electricity
would some day be so cheap that It
would not pay to meter it. Aburd-
ant S of. electricity should long ago
have come into fashion, but electric
companies, in general. have stifled its
use In the home by failing to provide
the very cheap electricity which they
are now in a position to furnish.
Figures published by the Electrical
World in 1927 show that the operat-
ing expense of the electrical industry
per kilowatt hour In 1925 was 4.25
per cent lower than four years before,
and the average rate Of interest paid
on new loans more than 10 per cent
less than in 1924: but the average
selling price per kilowatt hour was
only .06 per cent lower than four
years before. -
The industry has a wonderful vision
before 1t in its opportunity to build up
high load factors, which means the
percentage Of use Of facilities. Load
factors are now generally around As
and so per cent. When a load factor
is raised from 20 per cent to 30 per
cent. for example, overhead costs are
halved.
Raising the Load Factor
One significant method of raising
the load factor Is being introduced in
Philadelphia, with establishment Of q
special 1-cent rate for night current
used between 10 p. m. and Z g.. m.
This electricity is used to heat houses
or water. The electric company, dur
ing these hours when the load is low
est. is glad to sell for ! cent that
which 1t produces for a half cent.
More and more homes are being
heated by electricity and when we
can get properly low rates such use
will be general. That Is only one
phase Of the future Of electricity. In