Evening star., 1949-07-01
FPC Will Investigate
Gas Rates Charged 10
Virginia Distributor


The Federal Power Commission
has ordered an investigation of the
natural gas rates charged by the
Washington Gas Light Co. to It's
Virginia subsidiary.
In an order issued yesterday
the commission said it wants tc
determine whether the rates sub
ject to it's jurisdiction-the gate
or interstate rates-are unjust OF
unduly discriminatory.
The FPC has no jurisdiction ovel
rates to consumers within a State
Various sources familiar with the
rate picture said, however. that
if the interstate rates were re-
duced, 1t would then be up to the
various State and local regula-
tory bodies to determine final rates
to consumers.
Wholesale Rates Affected.
In statement issued after the
order, the Washington Gas Light
Co. emphasized that the rate re-
view relates only to nter-company
wholesale rates and that retail
rates charged to Virginia custom
ers by the Rosslyn Gas Co.-the
Washington Gas Light Co. subsid-
iary-are not directly involved.
The existing rates. as filed with
the Federal Power Commission, are
based on cost of gas to the Wash
ington Gas Light Co.." the COM
pany statement added. Such
cost includes the amount paid by
Washington to Atlantic Seaboard
Corp. for gas purchased. plus the
costs Of operating, storage. trans
mission and standby facilities,
and a proportionate part of the
cost OF amortizing certain manu-
featuring plants which were
abandoned when natural gas was
introduced. These plants previ-
ously had been used to produce
gas for use in the District of Co.
lumbia and Virginia as we'll as
Maryland.
Although the Federal Power
Commission. which has jurisdic-
ton over interstate rates, has an
nounced review of the whole
sale rate, at this time there is no
indication as to whether any
change in rates will be made"
Hearing Date Not Set.
The commission said new rates
would be set If hearing proves
present rates are inequitable. No
date was set for hearing.
The investigation, the commission
said, would include two of the gas
company's subsidiaries-the Poto-
mac Gas Co.. which owns the pipe
line tying into the Washington
system from Dranesville, Va. and
the Prince Georges Gas Corp.
which operates the storage gas
holders. Neither company dis
tributes gas to consumers.
The commission investigation
apparently sprang from a request
of the Arlington County Board to
investigate the rates charged by
the Washington Gas Light Co. for
natural gas delivered to the Ross
lyn Gas Co.
Price Boost Of 20 Cents Cited.
The Arlington complaint said
the Washington Gas Light Co.
purchases gas from the Atlantic
Seaboard Corp. at 33 cents a thou
sand cubic feet and sells it to
Rosslyn for So cents, thus making
an additional charge of 20 cents
for transportation of gas over the
Potomac Gas Co.'S 18-mile line.
The Washington and Potomac
companies countered that the
transportation arrangement has
been used only limited number
Of times and that the rate applies
to all gas purchased by Rosslyn
from Washington regardless OF
the source of delivery. The Wash
ington company has taken the po-
sition that the wholesale rate
charged to Rosslyn gives Virginia
consumers a proportionate share
Of the expenses of operation also
shared by District consumers.
The rate has been in effect since
July l, 1916. when straight natural
gas was first used in the Metro
politan area.