Evening star., 1952-01-10
Gas Co. Pours Data
On PUG 10 Back Rate
Boost Of S2.3 Million

Top officials of the Washington
Gas Light Co. today continued to
lay down a barrage Of data to
justify the company's requested
Z per cent rate o. return on its
investment.
Company Vice President Howard
B. Noyes testified today on the
utility's need and use of storage
and standby plants to provide
emergency service for consumers.
Mr.. Noyes explained to the COM
mission that the firm wants to
continue operation Of the East
End gas manufacturing plant un-
til 1857. In the 1949 gas rate hear
ings, officials announced they ex-
pected to retire this plant in 1852.
A change in plans was decided,
Mr.. Noyes said, since the company
can effect substantial savings BY
making its own gas for certain
cold weather peak periods.
The proposed rate, az per cent
higher than the company's 1851
return, was submitted late yes
terday to- the Public Utilities
Commission, hearing the utility'sE
request to raise District con-
sumers' bills by $2.3 million.
1t was offered late yesterday by
o. H. Ritenour, company vice
president and chief accounting
officer. It came on the heels of
another executives warning that
not even 6 per cent rate of re- /
turn authorized by PUG seven
years ago would be sufficient for
the company to maintain finan-
cial stability.
Attorney c. Oscar Berry told /
reporters the ga company's wit
neSses will require at least an
other day to complete their case.
Details on Operation.
Mr.. Berry. who unsuccessfully
fought the company's 1949 rate
increase grant through the courts,
said he is taking pains to get
into the PUG record every possible
detail pertaining to the gas oper-
alton.
He pointed out that Judge
David L. Bazelon of the United
States Court Of Appeals had ruled
that the company, in its 1949 rate
case, failed to introduce sufficient
details to support certain of its
claims.
Notably among these was the
company's effort to include its
abandoned West End gas manu-
featuring plant as part of its rate
base.
Mr.. Berry called attention to the
fact that no effort is being made
in the present rate increase move
to figure the West End plant aban-
donment in its calculations.
Results of Exclusion.
Mr.. Berry told reporters the
company feels exclusion of the
controversial West End plant mayl
smooth the path to an early rate
increase. At the same time, heI
emphasized to the PUG that the
company reserves the right to fig
ure West End in it's rate-baset
computations at some future date.
Key figures in the utility's testi-
mony yesterday were these:
II present rates prevail, total
operating revenues would total
$15.9 million as opposed to $1S.3
million under the proposed in
crease.
Total operating expenses would
be $14.6 million under the present
rate and $15.9 million under the \
proposed rate. One reason for
the increased operations costs :
would be higher taxe@$1.7 mil
lion under the 1851 rate compared
With So million under proposed
rate.
Improvement Discussed.
Gas company spokesmen yester-
day discussed for the PUG pro-
lected developments TO improve
service to District and nearby con-
sumers.
Mr.. Noyes, vice president in
charge Of engineering, testified
that the gas-storage tanks near
Rockville will go into service next
month and will reach 100 million
cubic feet capacity by midsum-
mer.
Mr.. Noyes also said the COM
pany expects soon to begin con-
struction of about miles Of 16-
inch pipeline to supplant a 12-
inch line from Arlington to Key
Bridge. This is part Of one Of
four natural gas-feeder lines to
the Metropolitan Area.