Evening star., 1935-12-13
$3l)5,O)O GAS RATE
CUT IS APPROVED
BY COMMISSION
Sliding Scale Plan to Correct
Charges Becomes Effee-
tive Immediately.
LARGER CONSUMERS
CHIEF BENEFIClARIES
Companies Granted Primary Re-
turn of 6.5 Per Cent on Agreed
Base of $21, 100000.

OooO VA Wv ~S5~~~t~
Adoption of a sliding scale plan for
annual correction Of rates Of the
Washington g. Georgetown Gas Light
Companies and an immediate net rate
cut to consumers of $305,000 below
present bills was approved officially to-
day by the Public Utilities Commits
sion.
The new rates are to be effective on
bills issued after next Monday. The
principal benefits will go to the larger
users of gas, with small cut in bills
to domestic consumers, particularly
those using gas only for cooking and
not for house heating.
Under the sliding scale plan, the
companies are granted primary re-
turn of SIS per cent on an agreed rate
base of 21,oo0, 900, with a plan for
annual allowance for working capital
cash; materials and supplies, estimated
to amount to $755,0O0 for the present
Meets With Agreement.
The sliding-scale plan provides for
decrease in rates to consumers in
keeping with percentages of excess
profits over 65 per cent on an agreed
rate base, and likewise for possible
increase in consumer rates should the
companies rate return on an agreed
rate base fall certain degrees below
6.5 per cent.
The agreed rate base Of $21 900 900,
plus what operation Of the formula
for determining working capital shows,
is as of the date of June 80, 1885.
The agreed rate base figure would be
increased from year to year according
to an accounting for additions and
betterments added to the plants of the
companies.
The sliding-scale plan provides a
new method of accruing sums for re-
tirement of outworn properties used
by the companies in their services.
1t also establishes plan for ALLEGATION
of properties of the companies as
between portions used for service with
in the District and for services to
sections in suburban Maryland and
Virginia. This latter plan also pro-
vides for ALLEGATION of revenues and
operating expenses on the same sort
of basis.
Original Plan Modified.
Action was taken on the plans today
after spokesmen for the companies
had resubmitted their original pro-
posals In somewhat modified form.
Agreement promptly was reached and
the commission issued formal order.
The new rate schedule shows gross
cut in rates amounting to 1851 500.
Since August, 1882, there has been in
effect an BIZ per cent discount. Thus
the net cut is estimated at $305,OOO.
OF the net cut, it is estimated the
average domestic consumers Will re-
ceive approximately $175,90O. Unof1-
cial calculations showed the average
consumer not using large quantities OF
gas, for house heating, may expect
reduction of about 4 cents in the
monthly bills.
The reason for this is there is such
a large body of small consumers. The
greatest benefits will go to commercial
and industrial users. Domestic con-
sumers using gas for house heating
will get a greater benefit than those
using gas only for cooking.
New Rate Schedule.
The new rates for domestic con-
Sumers will be as follows:
Those using 800 cubic feet or less
month, rs cents. This is the mini
mum bill.
Those using from SO1 to 5000 cubic
feet a month will pay at the rate OF
80 cents a thousand feet
Those using from 5000 to 1000
cubic feet will pay 10 cents, thou
sand.
Those using in excess of 1000 cubic
feet will pay 66 cents a thousand,
Only two changes were made by the
commission in the original revised
schedules proposed by the companies.
The breaking point" for the last
cut in the domestic schedule was
changed from 10000 cubic feet to
5000, making a difference of $7,430,
which was compensated for by frac-
tional increase in the new rate Sched-
ule for one of the commercial and
industrial brackets.
Minimum Bill of IS Cents.
Not counting the 8.5 per cent dis
count on bills, effective since 1882,
the present domestic schedule provides
a minimum bill of rs cents and for
the first 1000 cubic feet, 81 a thou
sand; for the next 1000 cubic feet,
90 cents a thousand, and for gas in
excess of 5000 cubic feet, IS cents
thousand.
For building heating, the new rate
VIII be so cents a thousand, with a
minimum bill of rs cents. Under the
old rates there was a 50 month ''de-
Tnand charge" and the minimum bill
was 81.
The new rates for commercial and
Industrial use.a are:
For 900 cubic feet or less, q mini
mum bill of rs cents; for the next
0100 cubic feet, a rate of 30 cents q
thousand; for the next 10000 cubic
feet, a rate Of 81 cents a thousand;
the next 900, 1000 cubic feet, rate Of
So cents q thousand; the next 1,000,-
900 cubic feet, a rate of As cents a
thousand, and for over 1900, 900 cubic
feet, Q rate Of 40 cents thousand.
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