Evening star., 1935-01-10
812 Per Cent Discount, if
Made Secure, Seen Aid in
Setting Valuations.
STUDY OF DEPRECIATION
COSTS ALSO is ORDERED
Washington and Georgetown
Companies Required to File
Data Soon.


for the Washington and Georgetown
Gas Light companies by permanent
order. without awaiting final deter
mination of the valuation of the COM
panies, the Public Utilities Commits
sion today ordered an investigation Of
the rates, regulations and conditions
of service of the gas companies.
A discount of 8l2 per cent on the
rates of the companies has been in
effect since August !, 1882, as a re-
suit Of the commissions investigation
into the rate base or valuation of the
companies which was started in
March, 1882. The commission an
nounced it wished to expedite deter
mination Of the rates in issuing its
new orders. Had this not been done.
some observers say, the question of
rates might have been involved in
litigation over the commissions find
ings of valuation. The new move is
calculated to separate the two issues.
Depreciation Rate Probed.
The commission today simultane-
ously issued another order for an in
vestigation Of depreciation rates
charged by the companies for retire.
ment of its properties used in serving
its customers. The companies are re-
quired to file depreciation data not
later than February Is. Similar
orders have been applied to the Chesa-
peake & Potomac Telephone Co. and
the Capital Transit Co.
Hearings on the valuation Of the
gas companies, which are in joint
ownership, were concluded last June
%. Briefs we're filed by counsel Au-
gust % and after these had been
analyzed the commission recently
started deliberations on the valua-
tions. 1t is expected the commission
may reach a conclusion as to valuation
within month or two. In that case
more than 5000 pages of record were
taken in addition to $4,000 pages Of
exhibits.
Hearings to Be Dated.
Before the end of this month the
commission will issue another order
setting the date for hearings on rates
charged by the gas companies. Be-
fore February IS the two companies
are required to file with the commits
sion statements showing:
The gross cost of each addition and
betterment to each company as charged
to plant accounts; description of
each piece Of property retired. to-
gether with data and method Of ac-
counting for each retirement, show
ing the amount of original cost. If
possible, the value of any salvage OBJ
tanned and the amount charged to
the retirement reserve.
Other data required by the commits
sion are index figures showing the
change, if any. in the trend of unit
cost of construction materials used in
the plant from June 80. 1882, to
December 81. last; changes in hourly
rates paid the several classes of labor
used in the construction work, and
operating revenues and expenses for
the period January /, 1884, to Decem-
Der 81 last.
Present Rates Given.
The present rates to customers
charged by the companies, making
allowances for the 8l2 per cent dis
count now In effect. are:
For the first 1000 cubic feet Of gas
consumed per month, 91.5 cents; for
the second and third 1000 cubic feet
per month, 82.35 cents. and for
amounts in excess of 5000 cubic feet
per month, 77.78 cents.
Figures in the hands Of the COM
mission show that the gross corpo-
rate income Of the Washington Gas
Light Co. has been for the first II
months in the past four years: Nine
teen hundred and thirty-one. Sl.770,-
OFT; 1882, 81 1.67S, ,586; 1888, 81 SOB ,267,
and 1884, $1,692,517. The net op-
Grating revenues for the same COM
parable periods are: Nineteen hun
dred and thirty-one, Sl,746,717; 1882,
81, $780, 1888, $1,559,9 $50, and 1884,
S1,612,569. For the Georgetown Gas
Light Co. the gross corporate income
for the comparable 11-month periods
we're: Nineteen hundred and thirty
one, S174,906; 1882. Sl48,943; 1888,
S66,550, and 1884. $40,468. The net
operating revenues for the George
town company for the same periods
were: Nineteen hundred and thirty
one, $157,146; 1882, $131,0 ,084; 1888.
$4S.093. and 1884, $33,554.