Evening star., 1940-11-20
409b Rate Cut
For Fuel Gas
Is Proposed
Plan of Commission
Engineer Contingent
On Use of Natural Gas
BY DON S. WARREN.

BY DON S. WARREN.
A reduction of 40 per cent IN
Washington Gas Light Co. rates
for house heating was proposed to-
day to the Public Utilities Com
by its special consulting en-
gineer. Frank P. Fisher. The pro-
posal was made contingent upon an
order by the commission for a
to exclusive use OF
natural gas beginning next spring.
The commission was advised that
house heating consumers could an
ticipate saving of s745 600 during
the first year and that, with extern
sion of use Of natural gas TO domestic
and other consumers, all within the
District there was an ANTICIPATED
maximum saving Of s1.530,00O a year
by 1850.
Gas Firm Questions Plan.
simultaneously gas company off-
cials released a survey report by
its own engineers questioning
whether it would be economically
sound or safe to make such a whole.
sale change in the company's serv.
ice. The company now uses its own
manufactured gas as a major guam
tity in its product and reported
Kentucky and West Virginia gas
fields have supply estimated sufi.
cient for approximately IS years
However. President Marcy L.
Sperry of the company issued a
statement saying gas company Off
Gals ARE as eager as any one for
any improvement that will benefit
our customers and maintain our
financial stability with continuity
of service.
The commission, while it has
been exploring the possibilities of
exclusive use of natural gas here
for about two years. has reached
no conclusion and indicated il would
hold a public hearing before it
does so. A bitter battle is antici.
pated
Would Keep Plants.
The plan offered BY Mr.. Fisher,
who started his studies 10 months
ago. would call for retention of the
gas manufacturing plants as "emer.
gency standby equipment: that
the cost of the change e-over-Which
company officials say would run to
at least s3,620O00-be amortized on
flve-year straight line" basis. and
that steps be taken by the commits
sion for negotiation of a reduced
gate" or wholesale rate to WASH
ington from the natural gas pro-
ducerS.
Commission experts. however, esti-
mated the cost of the changeover at
only S6l8,0OO
In this connection Mr.. Fisher sug-
gested that the commission make
application to the Federal Power
Commission for a net gate rate for
the Washington company based on
a reasonable earning on a normally
loaded pipe line" or as an alternative
that there be negotiation of a new
rate if both the Washington COM
pany and the Atlantic Seaboard
Corp. one of the companies handling
transmission of natural gas to
Washington. are willing to revise the
rates on a reasonable basis.
If the Fisher plan is adopted
Washington and suburban con-
sumers would be using straight nat
ural gas instead of the mixed
product, which contains between 80
and 35 per cent natural gas. Only
consumers using gas for house
heating. however. would get the 40
per cent rate cut in the beginning.
There would be change in the
billing system for other consumers
to a 'therm" instead of the cubic
foot basis which would be necessi.
tated by the fact that straight nat
ural gas has twice the British
thermal unit rating that the man.
ufactured product has.
Home Heating Rates Would Drop.
Commission officials said the
present house heating rate is so
cents per 1000 cubic feet and that
under the first step of the Fisher
plan. this rate would fall to SO cents
per 1000 cubic feet. The average
monthly house heating bill now is
about S12. and it would drop to
S720. figured on the basis of recent
consumption for house heating. 1t
was figured the present average
monthly gas bill for domestic con-
sumers is S2ll. figured on the basis
of $500 cubic feet per month.
Mr.. Sperry in his statement said:
Il notice that Mr.. Fisher bases his
whole plan on a price of natural
gas of about 80 cents (per l. 900 cubic
feet, which price cannot be obtained
for its delivery in Washington so
far as we know The rate now paid
is about "a cents per 1000 cubic
feet)
1T also appears at first glance
that he has overlooked the manner
in which about S3,OOO000 of costs
which will be required to make the
change is to be raised He also pro-
poses to reduce the house-heating
rates 40 per cent, but to give no
benefit in rate reductions to other
consumers.
Il am inclined to doubt whether
our 100000 customers ought to be
required to bear this cost, an in
convenience, all for the benefit Of
the few who can afford to heat their
homes with gas"
Fishers Report.
Mr.. Fisher is a member OF the
firm of Fisher & Davis. Detroit con-
sulting engineers. In his voluminous
report he said:
In view of the fact that there is
a sufficient supply of natural gas
available to protect the future of the
service in Washington, and that the
savings that would be available for
the reduction of rates is sufficient to
(See GAS RATES, Page A-50
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