Evening star., 1949-07-14
Gas Company
Asks 7 Per Cent
Rate Raise Here
Petition Filed With
PUG Seeks First
Increase Since 1912
By Harriet Griffiths

The Washington Gas Light Co
seeks to increase its rates to Dis
trict consumers about per cent
by August IS through a petition
filed today with the Public Utili-
ties Commission.
II granted, the rate rise would
be the first since 1912 for WASH
ington gas consumers, now num-
bering about 175.000. In that
year an increase of about 2H per
cent was authorized.
The increase is sought, accord
ing to the petition. to provide the
company with additional operat-
ing revenues of 100000 a year.
The company cited a 40 per cent
decline in net operating revenues
since 1899. owing primarily to the
increased cost of labor.
Early Hearing Seen.
It is anticipated the PUG will
schedule public hearing on the
request soon. Intervenors pos
sibly may include interests which
recently have charged that the
gas company unfairly engages in
the installation of gas appliances.
The company said it had no
plans at present to ask rate
change for Maryland and Virginia
subscribers. District consumers
also have to pay 2 per cent sales
tax on gas, beginning August /.
Everett J. Boothby. president of
the company. explained it had
been hoped a rate increase could
have been avoided by the 1947
conversion to natural gas but that
increased expenses have outrun
the economies brought about by
the conversion.
While Mr.. Boothby said a new
rate schedule has not yet been
devised, a straight 7 per cent in
crease in rates would run some
thing like this:
The average monthly gas bill
for householder who does
not heat his home by gas ID 1919.
His monthly bill would 60 up
about % cents.
The average monthly bill, on
an annual basis. for gas home
heating customer is $l1.46. His
bill would 60 up about 80 cents
a month. There are about $1,000
of this type of consumer.
Percentage Drop Figured.
The petition filed today pointed
out the company's rate of return
from sales to District gas Gus
toners has gone down from
about per cent In 1941 to about
325 per cent in the year ended
May 81.
Explaining the rate rise request
is not the result of the adverse
effect on company revenues of
last winters mild weather. the
company adjusted the figure for
normal temperatures and found
the current return even then
would not have been more than
1858 per cent for the same period.
The petition said the increase
requested Is of an emergency
character" and so does not re-
fleet full recognition of the re-
turn the company legally could
ask-an increase Of some $1,500,-
900. To avoid the delay entailed
by full rate proceedings, it was
explained. the company is asking
only 900 increase.
Investment Cited.
The present lack of an adequate
return, however, the petition says
means there are not sufficient
earnings available to pay the cost
of capital invested in the business
to protect investment values of Sc
curity holders and to provide the
margin of earnings needed to pre-
serve the credit of the business.
1T is for the purpose of pre-
serving the financial integrity OF
the company and thus insuring
continuation of safe. adequate and
reasonable gas service to the Ma
tion's Capital that the company is
obliged to propose the modest
increase in rates specified above,
the petition declared.
1t pointed out that all changes
in gas rates for the last 20 years
have been decreases. except FOL
the 1912 increase. AS result
the company now is selling gas
at rates below the 1889 level, al
though the general consumer!