The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-31
UTILITY CHIEF
GIVES OUTLOOK
Favorable and UnfavorabIe
Factors Detailed by
MCCarter.
BY THOMAS N. MCARTER
President Edison Electric institute.


Looking forward to the new year,
holding of it's gains by business in
general and the satisfactory results
of electric appliance sales cam
paigns are favorable factors in the
prospects for the electric light and
power industry in 1885. Except for
the effects of the textile strike, pro-
duction of electricity during 1884
remained fairly regular throughout
the year at a considerably higher
level than the low point of sales
during the summer of 1882.
Mounting taxation, pressure for
rate reductions without due process
of law, and the duplication of power
facilities subsidized by funds from
the Treasury, are the unfavorable
factors.
Electricity produced in 1884 for
all public purposes Gncluding sub
ways and traction SystemS) was eSti-
mated at 9O,OO0,OOOOOO kilowatt
hours by the Edison Electric Insti
tute-an increase of 51a per cent
over 1888, but per cent below the
high record of 1929. Industrial power
sales were up 81 per cent, but below
1881 and IL per cent under 1929.
Commercial Sales Up
Commercial sales began to reflect
the increasing volume of retail trace
during 1884 and showed an increase
of 6 per cent over the previous year.
Street lighting uses were little
changed from the year before, while
sales of power for traction purposes
increased by 8 per cent.
Total generating capacity showed
net decline for the first time in
the history of the industry. The
total of 33,30000O kilowatts was
100000 less than the year before
and this was due to the shutting
down Of several older and less eff
cient plants. Consumers, on the
other hand, increased by about
100000 to a grand total of 24,85O 600
at the end of 1884 The number of
farms served by utility lines showed
net increase of about $4,000.
Investors Get Less
Book value of the plant and
equipment approXimated $780,
900 900 as before. Gross revenues
were about $1,833 100000 an in
crease of 6O,OOO,O 900 or 3 per cent
over 1888. Rate reductions contin-
ued on much the same scale as in
previous years, the average price
of domestic service being reduced
to $50 cents a kiloWatt hour for
1884 as a whole, compared with $40
cents for 1888, 5.58 cents for 1882
and 5.78 cents for 1881. Prices for
industrial power rose substantially
during the latter half of the year as
the result of the increased costs of
fuel.
In spite of increased gross reve-
nueS, the investors in the industry
received somewhat less net income
than during the previous year.
Every item of operating expenses
was increased. The imposition of
the 8 per cent Federal tax on retail
sales for a full year added $25, 000-
900 to the tax burden; 100000 tons
of additional coal COR its equivalent
in other fuels) were consumed, the
price of all fuel was higher, and this
added some $30,000,000 more to
operating costs and another $10,-
100000 were added to the pay roll
through the full years operation
of the MIRA. In addition to this, the
cost of supplies and all the ma
terialS of construction showed large
advances.
Average Bill Off
The position of power company
securities was greatly impaired dur
ing the year by further threats OF
Government regulation and compe-
tition and new low records were
made by all the well-known induces
of stock prices during the last quar-
ter of 1884.
In line with the established prac-
tice of the industry, rates for do
nestle service have been lowered
! from year to year. At the end OF
1894. the average price of electricity
for household use had dropped to
So cents per kilowatt hour. Since
1913 the average price of domestic
electric service has declined by 80
per cent, although the general cost
of living still remains 81 per cent
above the 1918 level. If the element
of taxes is eliminated, the average
price for electricity has been re-
duced to As cents per kilowatt hour
or only little more than one-halt
| the roricn charged in 1919.