Evening star., 1940-11-21
Stormy Hearing
On Natural Gas
Plan Forecast
Company at Variance
With Report Given
Utilities Commission

Public hearings probably will be
held by the Public Utilities Com
mission in January before it acts
on the proposal of a special con-
sulting engineer for an order for
full use of natural gas by the
Washington Gas Light Co., be-
beginning next spring, under which
he recommended a 40 per cent cut
In gas house-heating rates.
Commission officials indicated they
would give careful consideration to
the suggestions for drastic change
in the methods of operation OF the
gas concern. and pitched battle Is
in prospect, judging from statements
issued yesterday by gas company
officials.
Company officials. who released a
survey of their own on possible
additional and complete use OF nat
ural gas, said they were interested
In any development of value to their
customers and then outlined many
reasons why they thought the con-
version to sole use of natural gas
would be uneconomic, fraught with
danger and otherwise undesirable.
Premise Called Incorrect
Marcy L. Sperry, gas company
president. said the reductions are
based on the expectation that
natural gas can be bought at 30
cent rate when 38 cents is the best
that We have been able to negotiate
; from the only possible source of
supply.
Our studies show that in order to
make a reasonable general rate re-
duction of even 20 per cent, natural
gas would have to be purchased at
not more than 9.3 cents for the first
year and at rate graduating up
ward to ola cents in the fifth year.
Members of the commission have
been probing natural gas pOSSlblll-
ties for nearly two years but yet
have indicated no conclusion.
About 10 months ago they en-
ployed Frank P Fisher natural gas
engineer to survey the possibili-
ties. and he suggested the 40 per
cent rate cut for space heating
customers. under which he antici-
pated a first year saving to con-
sumers of s745.000, anticipating that
as rates cuts we're extended later 10
other types of consumers the an
nual savings might reach as much
as 100000
Difference of opinion exists be-
tween the company and the COM
lS1lltjrO ar0oir1npr tho
costs of 100 per cent conversion to
natural gas
For example, he Mr. Fisher
estimate tes the cost of changeover of
appliances to be S50O,000," Mr.. Sperry
declared Our laboratory tests and
a careful count of all appliances to
be changed shows such cost would
be s2000,000 or more. He wholly
ignores capital costs required TO
make the changeover. such as con-
struction of new pipe line from
Rockville. Md, and the change in
present manufacturing plants to
produce 1,l50 B. t. u. gas instead of
375 B. t. u. gas. We know these
costs would total S2OOO.OOO more and
that the money has to come from
somewhere
Estimates Capacity of Wells.
Company officials questioned
whether it would be safe to depend
on natural gas from fields in West
Virginia and Kentucky, but Mr..
Fishers survey report indicates his
belief that even these fields have
a capacity that it would be safe to
depend upon for at least 10 years,
and he added that pipeline con-
nectionS are available which would
permit tapping fields in the Pan
handle of Texas for Washington
use if necessary.
Company officials also raised
questions as to whether existing
pipe lines between here and the
West Virginia and Kentucky fields
would prove of sufficient capacity
to meet the needs of Washington
and its suburbs, and Mr.. Fisher al
legged that they were ample. and
that the present flow could be
greatly boosted by installation of
several compressor stations along
the line.
There are conflicts also in these
arguments as to whether the pro-
posed change-over would reduce en-
ployment in the District while in
creaSing work in other juriSdic-
tions, and as to what effect the
proposed change-over would have
on other utilities and fuel conSump-
ton in the District.
Changes in Appliances Forecast.
1t appeared from the reports of
the experts for the company and
the commission that adjustments
would have to be made to virtually
all gas appliances in the homes of
customers OF the Washing ton Gas
Light Co. as well as to the COM
panys plants and whatever changes
are needed in its supply lines.
The company now uses between
80 and 40 per cent of natural gas
by volume in its manufactured
product. On this point the COM
missions consulting engineer stated
the natural gas now entering into
the mixture, by reason of its con-
centrated heating values. supplies
more than IS per cent OF all the
actual heat units used in the area
TO supply present needs with
straight natural gas only the other
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