The people's voice. [volume] (Helena, Mont.) 1939-1969, 1949-12-23
Federal Power


be zoe.
Consumers representatives an
counsel for the FPC requested tn
commission to make a finding on tn
actual cost of gas presently and tn
cost after the pipeline is built.
response to that request the commits
sion found:
eff Worland field gas is intro
duced into the Baker-Bowdoin sys-
tenn of Montana-Dakota the aver
age cost of that gas at the Cabin
Creek compressor station, based
on estimates submitted by Appli-
cants, will be 17.55 cents per Mcf
for the period 1850 through 1870.
The average estimated cost of gas
from the Worland, Baker and Bow
doin fields, to the Baker-Bowdoin
system, for the same period, is
11.47 cents per Mcf. The average
cost of all such gas, for the period,
is estimated at 1O.44 cents per
Mcf.
hS CfidChSCt ohOWo
that, based upon estimates submit
ted by Montana-Dakota, the aver
age increase in cost of gas requir-
ed to met consumer demands on
the Baker-Bowdoin system after
the introduction of Worland gas in
1850, over the present cost of gas,
will not exceed cents per Mcf for
the period extending through 1854
and will not exceed 6 cents per Mcf
for the period 1850 through 1870"
1t will be noted that these find
ings of the FPC, in the commits
sion's own words, are based on the
evidence submitted by MDU itself.
On the witness stand and in argu-
ment, representatives of the util-
ity were forced to admit that the
ACTUAL cost of Worland gas
would be 1755c as stated to the
FPC and NOT 2Sc as found by the
Montana commission.
Two suits have been brought to set
side the rate increase approved by
he Montana commission and it is
difficult to see how the Montana
can ignore these findings
S to cost upon which the FPC based
is granting of permission to the
Gontana-Dakota company to build
he pipeline.
The consumers objected to the
.ranting of the permit to build the
ipeline, also upon the grounds that
he utility did not have an assured
upply of gas in the Worland field
1t the argument in Washington in
November letters from the Pure Oil
company and the Secretary of the
Interior, were introduced showing
hat various changes had been made
0 that the supply of gas was reason
bly, assured.
In it's order the FPC also required
he utility to charge depreciation on
ne new pipeline on a standard basis
rescribed by the commission and
hat at the end of the 25 year period
nder which the pipeline was to be
perated under a lease agreement, if
ne subsidiary company, Montana
Wyoming Gas Pipeline, elects to sell
ne pipeline, that MDU may purchase
at the deprecated cost as of the
ate of purchase. This requirement
as made a condition of the issuance
t the certificate.
The order of the FPC is a signal
for the consumers. The
immediate rate increase
under the order will be
Sc per thousand cubic feet instead
Of lac as allowed by the Montana
Railroad & Public Service Com
mission.
1t is understood that the attorneys
II the consumer groups are pushing
,tions to set aside the present rate
crease and this finding of the FPC
i'll be of great assistance to the
when new rate hearing
held.
In the meantime, figure out this
s64 question:: "Why did the Public
Service Commission grant MDU
, 'bonus" of SC on their rate in
:rease request?