Evening star., 1951-09-09
80 Pei. Boost
In Natural Gas
Cost Faces Area
Wholesale Increase
To D. c. Consumers
Muy Be Passed AIonq

Possible increases of 80 to 35 per
cent in the wholesale price of
natural gas may be passed along
IN the form of higher bills to
Washington area consumers.
This was indicated yesterday as
Washington Gas Light Co. officials
said the price increases would cost
their concern $2.5 million annual
ly, if effective. No date for the
increase was forecast.
The latest move in the Wholesale
gas business was disclosed yes
terday when it became known
that companies supplying whole
sale gas in this area have asked
the Federal Power Commission to
grant new rates increasing costs
by about 5la cents a thousand
cubic feet. They blamed "a sharp
boost in the cost of natural gas
from the Southwest" particularly
the Texas fields, for the request.
Two Increases in Prospect.
Howard B. Noyes, vice president
OF the Washington Gas Light Co.
said that two prospective increases.
II finally effective. would cost his
concern up to SIS million yearly.
Mr.. Noyes said it is difficult to
estimate the exact percentage in
crease in cost, but that it probably
would range between 80 and IS
per cent.
II the FPC grants the raises. il
is considered likely that the WASH
ington gas company will ask the
District Public Utilities Commits
sion for a raise in its rates to con-
sumers here, on the basis of added
wholesale cost.
If our rates are increased, we
will have to do something about
it" Mr.. Noyes said. This latest
wholesale rate increase request has
happened SO quickly that we have
not yet had time to analyze the
situation. The whole matter re-
quires careful study"
Request Filed With FPC.
On Friday the Atlantic Sea-,
board Corp. and it's affiliate, Vir-'
Iginia Gas Transmission Corp,
both subsidiaries of the Columbia
Gas System. Inc, of New York,
applied to the FPC for an increase
in rates for natural gas delivered
to the Washington Gas Light Co.
and other companies in Virginia.
Maryland and West Virginia.
/ Mr.. Noyes estimated that this
latest increase, if granted, would
cost his company 81 million an
nually. On top of that. he ex-
Iplained, his company is faced with
another increase.
He said he is reliably informed
that Seaboard has put a new
wholesale natural gas rate increase
into effect as of September /, but
his company has not yet been offi-
cially advised of that. The an
nual effect of that boost on his
company, Mr.. Noyes pointed out.
would be between 81 million and
81 u million a year, depending on
the heating value of the gas de-
livered here.
This increase was the subject
lof FPC hearing, but no ruling
has been made, Mr.. NoyeS
said. Because Seaboard previously
posted this new schedule of rates
with the commission, it might put
it into effect after certain lapse
of time, he commented.
Production in Winter.
Mr.. Noyes explained that on
the coming winters coldest day,
his company expects to supply a
maximum of 203 million cubic
feet of gas. He pointed out that
the company's output runs about
80 million cubic feet daily.
John w. Partridge. president Of
the Charleston (W. Va group of
Columbia companies. of which
Seaboard and Virginia are a part,
explained the request became
necessary after the Tennessee
Gas Transmission Co. applied for
a substantial increase in rates for
the Southwest gas to Columbia.
The Tennessee concern, which
Operates the Big Inch Pipe Line.
!, brings in gas from Texas and
{ sells to Columbia.
Mr.. Partridge explained that
FPC has suspended new rates filed
) by Tennessee until December 16.
But unless there has been a
final determination by the COM
mission on that date, the Tennes-
Isee company can then begin col.
lecting the higher rates FROM Coz
lumbia System companies.
I'VE would have preferred to
wait until the commission had