The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-04-18
UTILITIES WIN
DESPITE RATE
SLASH ORDER
Light Firm Gains Approval
of Power Loop Method
Rate Making.
27O CITIES AFFECTED
100000 Yearly Saved for
Consumers by Cut,
Minton Claims.

Unestimated temporary rate re-
auctions for electric consumers in
270 cities and towns served by the
Public Service Company, a former
insult concern, have been ordered
by the public service commission.
The order constitutes victory for
the utilities long sought recognition
of the power loop method of rate
making as opposed to the individual
community plan upheld in the Mar
tinsville rate case.
The Martinsville case was one of
the few ever won by the commission
in the United States supreme court.
But its effect Immediately was
checkmated by action of the 1888
legislature which gave the commits
sion power TO use their own discre-
ton in basing rates upon the power
loop plan.
This the commission did yeSter-
day afternoon when it ordered rates
based on the system wide setup.
Effective May
Although the commissioner them
selves refused to estimate the saw
ing to consumers, Sherman Minton,
public counselor, stated it would be
around 100000 year.
The new schedules will be effec-
tive May l and continue until a
permanent order is written based
upon audits and appraisals now I'M
der way.
A 6 per cent return upon a prop
erty valuation of $43,500000 forms
the basis for the new reductions.
The company sought to establish a
valuation of $5O,757, 694 and Mr..
Minton wanted a So per cent re-
turn based on $33,791,737.
Mr.. Minton's expert, Mark Wolff
provided the data upon which the
case was launched and the tenn
porary rates based.
Compared to Old Rates
General comparison of new and
old rates follows:
Class Al cities, y cent cut a
kilowatt hour in the second thirty
kilowatt hours used a month and
advancement of the 212-cent kilo-
watt low-cost step to third instead
of fourth place, thus placing users
in the 215 -cent bracket when they
pass sixty kilowatt hours use in
stead of after 260 kiloWatt hours use.
nj @F
south system will receive 1-cent a
kilowatt hour saving on each of the
first thirty kilowatt hours and will
reach the low brackets above sixty
kilowatt hour consumption. There
are seventeen of these systems.
Class B cities, towns and commu-
mites receive 1-cent kilowatt hour
saving on the first thirty kilowatt
hours used a month, plus p cent
saving on each of the next thirty
and go into the lower bracket 2l5-
cent kilowatt hour cost when
they pass ninety kilowatt hours use
a month.
Rural residential rates are cut p
cent for each of the first thirty kilo-
watt hours and steps are changed
so that the Scent rate is reached
on passing sixty kilowatt hours and
continuing up to ITO kilowatt hours
and the 212 cent rate is given on
passing 230 instead of 260 kilowatt
hours; also, the monthly minimum
rural charge is cut from So to $3.50
Power rates are standardized for
the whole system, except that lower
contract rates in effect remain as
optional and the new steps are re-
duced in quantities so that inter
mediate users obtain substantial re-
auctions.
Cities included in the power loop
extend as far north as Lafayette
west beyond Terre Haute and east
beyond Newcastle and include most
of southern Indiana. In all, fifty
counties are affected.
The loop includes the same south
system" over which the Martinsville
case was fought.