Evening star., 1942-10-14
Higher Gas Rate
Grant Studied
For Application
Hunkin Dissents us
PUG Allows Increase
Of 100000

Of $200, 900
just how and when the WASH
ington Gas Light Co. will apply to
consumer bills the 100000 rate in
crease granted lest night by the
District Public Utilities Commission
was subject to legal study today, in
the light of the recent amendment
to the Emergency Price Control Act.
The increase, ordered by the
PUG majority, Chairman James H.
Flanagan and Engineer Commits
sioner Charles w. Kutz, over sharp
dissent by Gregory Hankin, was
figured to mean about cents on the
monthly bills of the average domestic
consumer but more on commercial
and industrial users.
The PUG majority said domestic
consumers using $500 cubic feet or
less per month would sustain no in
crease; that the typical space heat
Ing customers bills would be in
creased by % cents per month for
the eight-month heating season, and
that the average increase for COM
mercial and industrial consumers
would be 46 cents per month. 1t said
the increase for all customers would
be 2.28 per Dent over rates of the
past year, and declared this would
not be "inf1ationary."
Retroactive Under Order.
The commission order made the
rate hike, approved over the pro-
tests OF agents of Price Admins
traitor Leon Henderson, retro
active to September /, but there
was a suggestion today from some
company officials that 3O-day
delay might be invoked.
Harry R. Booth, utilities counsel
for the OPA, who participated in
the case as an intervenor, was con-
sidering with his superiors what
other steps might be taken.
In releasing the PUG decision,
Chairman Flanagan stated: Il am
assured by the company that it
will give appropriate notice to
James F. Byrnes, economic stabili-
zation director, in compliance with
the terms of the recent Act of Con-
gress amending the Emergency
Price Control Act of 1912, and that
such notice will be accompanied by
a copy of the findings and order
of this commission"
A section of the amended Price
Control Act provides that mo COM
mon carrier or other public utility
shall make any general increase in
its rates or charges which we're in
effect on September IS, 1912, unless
1t flrst gives 30 days notice to the
President, or such agency as he may
designate. and consents to the
timely intervention by such agency
before the Federal, State or munich
pal authority having jurisdiction to
consider such increase"
Legal Views Vary.
October President Roosevelt des-
ignated former Justice Byrnes as
director of economic stabilizat ton
but to date no agency has been
designated as unit through which
his policies are to be carried into
effect.
In the first few hours following
the PUG decision there was a mix
ture of views AS to what effect the
new price control measure might
have ON the utility rate boost
Whether the company must accept
a 30-day delay, whether it must
consent to timely intervention
by designated agent of the Pres
ident: whether this already has been
accomplished by the fact that the
OPA was admitted to the recent
case as an intervenor; or whether
or what effective powers were
granted to any Federal agency be-
yond the matters of notice and con-
sent to timely Intervention"
The approved rate hike is far
less than that contended for by the
company in recent but extended
public hearings due to decisions
reached by the commission on issues
featuring the hearings. The COM
pany held that under the sliding
scale arrangement it was entitled
to an increase of 1888 900, but pro-
posed to apply about 1857 900 in rate
changes The PUG staff, disapprov-
ing certain charges to operating ex'
pense, found rate boost of 1926 00(
was in prospect. Mr. Booth claimed
there should be airate decrease OF
more than $4,000.
Mr.. Hankin. in his dissent, helc
49, hod thn DJIC followed differept
courses on issues in the sliding scale
case, there should have been ar
order. for a rate cut of 6l7,874.36
He added that II the company were
held to a 6 per cent return on val,
uation and accounting methods hi
outlined. rates should be reduced
by $1,009, ,207.04.
Under the PUG ma ajority decision
the S200.l41 rate increase would bt
allocated as follows: For Residential
consumers. $53.429; for commercial
$35. .908; for domestic space heating
S1Ol ,208; for commercial space heat
ing. S6.387; for seasonal offpeak
s2l8. and for wholesale apartment
house usage, $2.99l.
The financial condition of tn,
company was cited by the PUG
ma aiority in it's outline of the case
Specific mention was made of tn
ability of the company to sell bu
1s.2O6 shares of the 10000 shares 5!
preferred stock issue it offered re
Gently.
Low rates are desirable only wher
coupled with adequate service. ant
such service cannot be rendered b.
the company if it is unable to Sc
cure funds to provide the necessar.
additional facilities" the commits
sion majority said, referring to tn
company's problem Of meeting war
time. increasing demands for serv
ice. "The District has been charac
terized as the No. defense area o
the United States, and it is vita
that the company be in position a
all times to provide adequate serv
ice"
Chairman Flanagan and Brig
81 D..xr that rnctc n