Evening star., 1938-05-11
EARNINGS
RELATIVELY GOOD
Drop Less Than Outputs
Because of Income From
Residences.
BY ]. G. DONLEY.
,pecial ptspatc tch to Tha Star.

SpeCldl DlSpatCN 10 nc 6tdr.
NEW YORK. May 1.-THE reason
why the electric light and power in
dustry has not suffered a decline in
earning power in the same proportion
as its loss of about IL per cent in
total power output, as compared with
a year ago, is readily apparent to any
one who looks into the statistical facts
in the recently released bulletin Of
the Edison Electric Institute.
The decline in power consumption
has been largely due to lessened
activity of industrial customers. who
buy their power at what might be
called wholesale prices" while resi-
dental use of current has held at a
satisfactory level The householder
is the most profitable customer be-
cause he pays retail price" for the
power he uses.
The greater importance of resi-
dental customers as revenue pro-
ducers for the electric utilities is
clearly shown by the fact that, while
the total residential use Of power last
year was less than one-fourth of
the total commercial use, the total
revenues from residential customers
was considerably more than half the
total revenues from commercial Gus
toners.
Rates Differ SharnIy.
Residential consumption of power in
1887 amounted to 16,875, ,489, 900 kilo-
watt hours, as compared with total
commercial use (small light and power
and large light and power customers
combined) of 7l,104,32l 900 kiloWatt
hours. The total revenue from resi-
Dental customers was S740.2l8,600, as
compared with S1.2l9,897 400 from all
commercial customers. The average
rate paid by residential customers was
439 cents per kilowatt hour, while the
average rate paid by commercial Gus
toners was only l72 cents.
1t it were possible to present figures
for net revenue from these two main
classes of consumers, the result would,
of course, be even more in favor of the
residential customer as the most de-
sirable to have on the power lines
But industrial customers are desir-
able as load builders, the cost of
distribution to such customers is
lower than for residential service, and,
If it were not for the part played by
large power users in enabling the
light and power plants to bring opera
tons up to the most efficient levels,
the householder would have to pay
considerably more for his kiloWatts.
Home Uses Increase.
Even So the utilities may view with
considerable satisfaction the record
which shows that the total residential
consumption of power has increased
nearly 80 per cent since 1929 During
the same period, the number of resi-
dental customers has increased only
little more than 10 per cent, or from
l9,l03,335 to 2l.275,909 in the average
number hooked up for the year.
During the same eight-year period,
the increase in total consumption of
electric power by commercial users
has amounted to less than 80 per cent.
as compared with the growth of nearly
80 per cent in residential use. And
the number of commercial customers
has increased only little more than
5 per cent, as against the gain Of
more than 10 per cent in residential
customers
These changes show up most clearly,
OF course, in the average use of cur
rent per customer. Among CONNER
cial customers, the average use in
1929 was 1892 kilowatt hours, and,
by 1887 this average had risen to
l7,28l-an increase of less than 21
per cent. During the same period,
the average residential use of cleo
tricity rose from 499 to 1893 kilowatt
hours annually--an increase Of a little
less than SO per cent.
Copyright. 1889