Evening star., 1932-01-24
BY GEORGE OTIS SMITH,

- HLS TGuSOUS y" UcttcUEIy Tb UtVc
| rather than less regulation.
BY GEORGE OTIS SMITH,
| Chairman. United States Federal Power
| Commission.
Although members Of the Federal
Power Commission are prohibited by
niarily interested" in any Corporation
engaged in the generation, transmts-
sion, distribution or sale of power" I
must confess a substantial interest in
the power business-just like everybody
else among the more than 100000
householders in the United States who
use electric current.
What and how large that pecuniary
interest is can best be shown in terms
of the average ultimate consumer-the
head of a family who receives
monthly electric light bill
There are more than 85,000,000 per-
sons living in electrically lighted homes
in the United States. Their corlSump-
ton of electricity varies with latitude
and longitude, ranging from that of
the average California residential Gus
toner of the electric central station,
whose annual requirement Is more than
1,500 kilowatt hours, to that of the
average householder in Gulf city, who
uses only about 400 kiloWatt hours
year. The average yearly household
consumption in the whole United States
is now $50 kilowatt hours.
Depends Upon Use.
These differences in consumption Of
electricity are due especially to the
varying degree to which the invisible
current Is made to help in the house
wife's work. The best estimates avail
able indicate that over the country as
a whole in every 100 families whose
dwellings are wired for electricity there
are 96 electric flatirons. IT radio sets,
48 washing machines, As vacuum clean
ers, 40 toasters, 20 percolators, II re-
| frigerators, 16 electric heaters, the same
number Of electric clocks and sewing
machines, and 5 electric ranges To-
gether, these household appliances ac-
count for nearly half the home con-
sumption of electric current.
Throughout the country the rates
paid for this residential service vary
greatly, but State regulation and tech
nical advances and increase of busi-
ness, all working together, are con-
stantly reducing these rates practically
everywhere. Yet the average price is
| not going down fast enough to offset
the average increase in consumption
The result is that the monthly bill paid
by the head of the average family Is
slowly going up.
Just now that average bill is $2.s4.
, A year ago 1t was s2.72. But in the
meantime some 100000 new refrig-
orators, washing machines, ranges and
vacuum cleaners have been put into
service. not to mention many thousands
Of the smaller labor-saving household
appliances.
May Expect Increase.
These kitchen facts explain why the
average family Is using 80 kiloWatt
hours more Of current than q year ago.
And we may expect a further increase
this year If the Association Of Electric
Refrigerator Manufacturers reaches its
selling goal of million more homes
supplied with this type of refrigerator.
OF course, your interest and mine in
the product of the power industry does
not stop with the current which comes
into our homes and for which we indi-
Vldually pay. City streets are lighted,
urban cars and elevators and a few
railroads are supplied with motive
power, and many industrial plants have
their countless wheels turned by elec-
tricity from the same great central
stations where either steam or water
furnishes the energy.
Our expenditures for electricity are
In part of this intangible kind that we
pay indirectly, and therefore uncon-
sc1ously, whenever we buy transporta-
t1on or commodities-even chickens are
Matched by electric heat, and the work.
Ing day OF hens is regulated by electric
light.
Revenue $4,000, ,000, 900.
The total revenues of the power COM
panies are approximately $4,000 00O, 900
year, of which only about one-third
comes from the residential service we
pay for directly. This might be termed
the retail business, with more than
2O,00O,000 customers. The much larger
quantity Of electricity, sold to more
than 100000 customers, is the whole
sale end of the business. And it Is
interesting to note that during the last
TWO years 1t has been the wholesale
business Of the power companies that
mas fallen off, while the retail business
mas generally shown goodly increase,
in part owing to the enterprise shown
by many companies in offering bargains,
more politely termed promotional rates.
All this refers to your interest and
mine in the business as customers. But
who owns all the 5000 power stations,
the 211 900 miles of transmission lines
stretching across the country, and the
network of hidden cables beneath the
city streets? The simple answer is that
all this property, worth some $12,8OO,-
100000, belongs to about 1900 operat-
ing companies, with the exception of
about 750 municipal plants, whose out
put Is not quite per cent of the whole
Most OF the commercial companies be-