Evening star., 1940-08-22
Gas Rate Cut
Is Due Average
d. Consumer
Cents Per Month
Domestic Reduction
Slated in September

Slated in September
A reduction of at least cents
q month Is In store for the average
domestic gas consumer here effec-
tive September /.
This was revealed yesterday as
the Washington Gas Light Co.
presented a new rate schedule to
the Public Utilities Commission at
the annual rate-determining hear
ing.
Approximately $500 customers
will participate in some reduction.
The scent cut would apply to the
average user in the group Of con-
sumers Of about 3,700 cubic feet per
month. The reduction affects con-
sumers of as low as $500 cubic feet
per month, however.
Stephen S. Mason, rate engineer
for the gas company, told the COM
mission the reductions were based
on $105, 900, Of which $70,810 was
allocated to the domestic users.
Commercial and Industrial.
Commercial and industrial users,
he said, will participate in $50, ,780
reduction, the rate decrease affect
ing those consuming 5000 cubic
feet per month or more. Rates to
apartment houses will be slightly
reduced where consumption is more
than 5000 cubic feet per month,
but only $3,71o is allotted to this
group.
The rate reduction is brought
about by the sliding scale plan
enforced by the local commission,
under which excess return is turned
back to the consumers in the form
Of reduced rates. Under the plan
q return Of over 6lz per cent and
less than 71a per cent is split be-
tween the gas company and the
consumers. All return over 71a
per cent is to 60 back to the con-
sumers.
While the proposed rate reduction
for the coming year is based on
$105,00O, commission accountants
told the commission the amount
available for reduction was $l13,-
1888.
Robert c. Overs, vice president
and treasurer of the gas light COM
pany, told the commission the diff
ference was almost entirely made
up IN disagreement over the oper-
ating expenses Of the company.
Items Under Controversy.
Mr.. Overs contended that a S1,525
payment to the Greater National
Capital Committee, a $13817 tele-
phone service bureau, some $3,400
expenditure in placing the common
stock Of the company on the New
York Stock Exchange and a small
advertising bill should be included
in the operating expenses Of the
company.
v. A. McElfresh, chief accountant
for the commission, refused to al
low these items In making up his
figures of the companys operating
expenses. Hence the rate base on
which the return was computed was
slightly different.
In justifying his inclusion Of the
controversial items in his operating
expense computation, Mr.. Overs
distinguished between a contribu-
tion to the Greater National Capital
Committee and a donation to the
Community Chest or the Red Cross.
He said the contribution was made
as a business proposition in the
thought that additional convention
and tourist business brought to the
capital meant more gas consump-
ton by restaurants and hotels and
provided employment for many peo-
pie whose families lived here and
consumed gas.
Saw Improved Service.
He contended that the telephone
service would improve service to
customers. Mr.. McElfresh had con.
tended the amount should be amor
tized over period Of years and not
Jumped as an operating expense.
AS to the listing Of the stock. Mr..
Overs said a national market for
the stock of the company was highly
desirable and that listing on the local
exchange alone was inadequate.
The advertising expenditure in
volved part payment by the company
for an advertisement featuring the
house of tomorrow" as an all-gas
house, which Mr.. Overs said he con.
sidered good publicity. Mr.. McEl-
fresh described the expenditure as
building subsidy" which Mr..
Overs vigorously denied.
Corporation Counsel Elwood Seal,
participating in the hearing, cited a
court case in which a donation of a
company to chamber of COM
merce was disallowed in the COM
putation of that company's oper.
ating expenses. E. Barret Pretty
man was counsel for the company
and Assistant Corporation Counsel
Lloyd Harrison represented the Dis
trict. Vice Chairman Richmond
Keech presided.