The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-18
UTILITY RATES
HEARING OPENS
IN U. S. COURT
SyStem-Wide Basis Backed
by Attorneys for Wabash
Company.

Argument that utility rates for any
city should be fixed only a system
wide basis was stressed in federal
court here today by attorneys for
the Wabash Electric Company
fghting light and power prices set
by the public service commission in
Martinsville almost three years ago.
Judge William Sparks of the
United States circuit court of ap-
peals, Judge Robert G. Baltzell of
the southern Indiana federal court
district and Judge Thomas w. Slick
OF the northern Indiana district,
presided.
Howard Young, representing the
Wabash Electric Company, a sub
sidiary of the Central Indiana
Power Company, an insult utility,
attacked the public service commits
sion's rate ADJUDICATION on the basis
of evaluation Of local property and
a gateway price struck from an
average cost Of transmission of
power from generating source
over a large loop supplying many
outlets.
Argues for System
The gateway" price is the aver
age cost of transmission of power
from its source of generation to the
transformer leading into a power
consuming community.
The entire utility system should
be evaluated as an operating unit,
and the rates based on cost of OPP
Grafton Of the system, Young
argued.
He was answered in early argu-
ment of Arthur L. Gilliom of South
Bend, former encouragement OF
the state, who represents the public
service commission.
This utility, when seventeen
Martinsville citizens and the city
corporation petitioned for a rate in
quiry in their corporate limits, made
no suggestion for a company wide
inquiry, and filed no cross-com-
plant when the inquiry was made"
he said.
Real Unit of System
1.-THE Wabash Electric Company
is one of seven utilities owned by
the Central Indiana Power Com
pany The latter, operating over
virtually all of Indiana, is the real
operating unit Of the system.
How could the public service
commission determine what is a
reasonable rate for people at Mar
tinsville, thus connected?" he
asked.
Opening his statement, Young
said that the Dresser plant, on the
Wabash, near Terre Haute, supplies
approximately 100000 kilowatt
hours of electricity annually, half
of this being consumed by the
Northern Indiana Power Company,
a subsidiary to the Central Indi-
ana company.
That power flows over wire di-
rect from Clinton to Lafayette,
without transformation, and thus
can be supplied more cheaply than
can the other 40,000000 kilOwatt
hours, on the general service loop,
transformed several times and split
up into small packages.
The rate to the Northern Indi-
ana Power Company is one cent,
while the gateway" rate set by the
public service commission is OFT
kilowatt hour.
Hearing on Exceptions
The rate sought by the utility is
approximately .025.
To compensate for the difference
between OFT and OPS, the Northern
Indiana Power Company should
have to pay a rate equal to that for
general service.
That utility can and would buy
their power elsewhere, and then the
Dresser plant, with virtually the
same operating expense, would have
only 100000 kilowat hours year
output, with the expense falling
solely on consumers on its loop in
western Indiana, doubling rates to
Martinsville and fifty other points,
Young commended.
The hearing today was on ex-
ceptions to the report Of Albert
Ward. special master-in-chancery.
VINO filed his report last June.
A temporary injunction against
enforcement Of the public service
commissions reduction is sought by
the utility to be made permanent.
Gilliom had not completed his
argument when court was adj
journed until this afternoon.