The Waterbury Democrat., 1933-03-24

lnTOuSn the use OI Lu0 area form of ele tric rate, the average price received for electricity in the territory of the Hartfod Electric Light company has been reduced from 9.6 cents per kilo-watt hour in 1921 to 4.5 cents in 1892, a reduction which could have been accomplished under no other form of rate, Samuel Ferguson, presi- dent of the company, told the judiciary committee of the general assembly yesterday in appearing in opposition to bills designed to make use of the area rate illegal.
 MT Ferguson's statement to the committee was in part as fol- lows:
 While my remarks have to do particularly with the Hartford Electric Light company, they are equally pertinent relative to the similar rates in effect elsewhere in the state, not of course to the same degree everywhre, since generally where the rat has ben in effect the longest tn progress toward lower prices has been the great est.
 'In 1921 I visited Canada and studied the situation in Ontario with respect to the reasons why they were able to render domestic service at the extraordinarily low rates which were and are famous the world over. I found four principal reasons, namely:
 "(1) Power from Niagara Falls "a unique natural resource.
 "(2) Freedom from taxation.
 "(3) Operation at cost.
 "(4 The area torm of rate.
 "Much to my surprise I discov- cred that, of these four conditions of difference between Ontaria and Hartford, it was the fact that the area form of rate had existed from the start that made he greatest difference.
 Applying the effect of each of these four items to Hartford con- ditions, I found that the form of rate had made more difference than any combined two of the other three advantageous factors.
 q realized perfectly that this form was strange, that 1t was not easily understood, and would, therefore, be subject to more at- tack when used by private com- panies than in the Canadian muni- cipal operations, but the possibili- ties for lowered prices were too great for me to deprive the public of Hartford of the benefit just be- cause I feared the attacks which were sure to follow from those not ,conversant with the nature of elec- tric costs.
 "So in January, 1922, the area form of rate was introduced and the anticipated results obtained both as to the lowering of prices nI. 1,n af h n How great has been the reduction in 10 years is shown by the fol- lowing comparison:
 Average price received in 1921 -9.6c per kilowatt hour.
 Average price received in 1932 --4.5c per kilowatt hour.
 "Under no other form of rate has there been any such reduction in the period anywhere in the United States; but in every place where this rate form has been adopted similar results have been achieved.
 "In order to show a little more personally how well we have suc- ceeded in comparison with terri tories who have not given their customers the benefit of this form of rate, I would cite the fact that two members of this Judiciary committee are our customers. l have looked up their payments for the last year and find that if they had lived in Boston, where they would have no area charge, they would have paid 35 per cent more dollars for the service they re- ceived.
 "This place is not appropriate for a technical argument, so I will simply poi't out few incontrover- tible facts which will show that the rate is both logical and equit- able.
 "Electricity for light costs more to make and deliver than for other purposes. This is recog- nized in many court and commits sion decisions in which the pro- priety of a higher rate for light has been recognized over and over again.
 "This difference can readily be cared for by different meters on the light and power circuits, but to do it this way involves the cus- toner in the expense of wiring his home with two circuits which many millions of dollars in Hart ford alone.
 "If the use of light was the same in all homes, single circuit and meter could be used with a meter rate appropriate to the amount of power used, plus fixed charge which would compensate for the amount of undercharge on those kilowatt- hours used for light.
 "Inasmuch as experience has