Evening star., 1951-11-28
Gas Company
Asks 1917 Rise
In D. T.. Rates
Utility Cites Increase
In Costs as Reason
For New Application
By Horriet Griffiths

The Washington Gas Light Co.
today asked a Is per cent rate In
crease for District consumers. in
an application filed with the Pub
lie Utilities Commission.
The company cites a 40 per cent
boost in the price of natural gas
as the main reason for seeking to
add $2,345, 900 to Its revenues for
1852.
For a typical householder not
using gas to heat his home. the
increase would be about 60 cents
"a month.
The gas company was granted
"a $750.000-a-year rate increase by
the PUG in November. l949. That
rate order was set aside by the
courts. however, and the company
has refunded $1,259 900 to its Gus
toners as a result.
Increase I'm l942.
With increased operating ex-
penses and no effective rate in
crease since 1912. earnings in the
District have been dropping to a
point where the present return is
only 4.6 per cent Of invested capi-
tai. the company says.
Rates for Maryland and Vir-
|ginia customers are higher than
those in the District. and PUG
approval Of the District rate boost
would make rates more nearly
uniform throughout the COM
pany's area. according to Everett
J. Boothby, president.
The PUG is required to hold
a public hearing before acting on
the rate increase request.
1t would increase the minimum
monthly charge from IS cents to
Isl. Under the proposed new
schedule, the average monthly
bill for a typical domestic Gus
toner who did not space heat
with gas would 90 up from 1891
from $500.
The average bill for a typical
customer using gas for space heat
ing would rise from 1891 te
1881.
With the exception Of a ~
per cent increase in 1912, all
changes in gas rates for the last
80 years have been decreases, Mr.
Boothby said.
Price Rises Cited.
The company stated that higher
prices paid for natural gas since
September l. together with an
other increase to result in March
from a new tariff recently filed by
the Atlantic Seaboard Corp. with
the Federal Power Commission
will increase operating costs $1s
million a year.
1t cites also higher wage scales
taxes and the need for further
plant investment as contributing
factors in the rate increase re-
quest.
The wholesale price paid by the
company for natural gas is pre-
scribed in tariffs filed by the pipe
line operator. Atlantic Seaboard
but is subject to final determina-
ton by the power commission.
In the case of the tariff that
went in effect September /, the
power commission proceeding il
not yet completed. Meanwhile
the supplier collects the higher
tariff under bond. The company
can only speculate on when the
power commission may rule on the
newly filed tariff.
The company's application tc
the PUG states that if final deter.
mination of the wholesale rate re-
suits in a refund to the company
a refund would be made to it's GUS
toners subject to PUG approval
Would Simplify Rates.
The rate structure would be
simplif1ed under the proposal by
adoption of a single rate schedule
which would be available for all
residential and ordinary CONNER
cial usage.
Mr.. Boothby estimated that il
present rates remain in effect, the
rate of return earned for the yeal
1852 will fall below 4 per cent.
with such low rate of return
we cannot continue to furnish gas
service Of the standard we have
maintained in the past. and seri-
ous damage will have been done
to the company's financial stand
ing and credit rating unless gas
Continued on Page A, Col. S.