Evening star., 1949-07-29
Gas Rate Hearing
Recess Dims Chance
.0f Quick 7qo Boost
The Public Utilities Commission

hearing on the Washington Gas
Light Co.'S application to increase
gas rates to District consumers by
7 per cent will be in recess for at
least four weeks.
Chairman James H. Flanagan
of the PUG recessed the hearing
yesterday, after the gas company
presented its case for a rate in
crease to produce 100000 year
in additional operating revenues.
Adjournment of the session at
the District Building subject to
recall of the commission, for not
less than four weeks dashed the
hopes of the gas company to get
the increase effected by August Is.
To Prepare Cross Examination.
The recess is for the purpose of
preparing for DISCRIMINATION
and presentation of additional
evidence.
William A. Roberts, counsel for
the Gas Consumers and Independ-
ent Appliance Dealers. who are
intervening in the case. said he
wished to submit a questionnaire
to the company. delving deeper
into its financial set up in con-
nection with preparation of his
case.
Also intervening is the Bureau
of Federal Supply, and appear
ances were entered by the Dis
trict Industrial Union Council
(CIO). the Fort Davis Citizens
Association. the Federation of
Citizens Associations and the
Restaurant Beverage Association.
In an opening statement, Oscar
Berry, representing the gas COM
pany, declared the company's rate
of return on investments, amount
ing to less than 3l2 per cent. is a
dangerously low rate of earn
ings."
Facing Emergency"
The company is in the posi-
ton. he said, of facing an emerg-
ency. and unless financial relief
is granted. "its ability to provide
service will be seriously impaired" "
Higher costs of operation have
resulted in a serious decline in
net earnings. which has occurred
in spite of an unprecedented
growth in business" Mr.. Berry
said.
He named the major item of
higher costs as wage and salary
rates, adding that basic wage
rates today are 81 per cent higher
than they were in 1889.
Otis H. Ritenour, controller of
the gas company, presented fig
ures indicating the volume of gas
sold has increased about 70 per
cent in the last 10 years while
investment required to serve Gus
toners has increased nearly A
per cent.
Figures Show Increase.
The figures brought out that the
number Of customers meters had
increased from 13S.934 at the end
of 1899 to 1909 on May 81 Of
this year. Therms of gas sold in
creased from 60,020, ,028- in 1889 to
| l02,371,776 in the last year, ac-
cording tes the statistics.
be- The co1npanys average invest
ment went up from s22,791,376 in
1899 to $32.779.172 in the current
year, the PUG was informed.
Net operating revenues dropped
from $1,734,925 to $l,106,318 dur
ing the 10-year period. the figures
indicated.
| In its petition for the increase.
the gas company pointed out. the
rate rise. if permitted, would be
the first for Washington gas con-
sumers since 1912. when a 2H
per cent increase was authorized.
All other changes in rates for the
last 20 years have been decreases.
lit was said. and gas rates now are
below the 1889 level.
Request Held Minimum.
Mr.. Ritenour presented figures
to show that should the company
be granted the 100000 a year in
additional operating revenues. the
rate of return would be increased
from 1888 per cent to 4.93 per cent.
Mr.. Berry told the PUG the re-
quest was for the minimum ad-
ditional earnings possible He
said the company thus hoped to
avoid the delay resulting from a
full determination of its rights.
He said that in applying for the
limited increase. the company was
not waving it's right to ask later
for a full rate proceeding If that
should become necessary.
I'VE cannot say whether or not
it will become necessary" he said.