Evening star., 1954-05-26
Gas Go. Urges
Plan 10 Refund
$733,971 Here
D. C., Maryland
Consumers Would
Receive Credits
By John w. Stepp

The Washington Gas Light Co.
today asked permission to refund
$733.971 to its Washington and
Maryland consumers.
In nearly identical petitions
filed with the District Public
Utilities Commission and the
Maryland Public Service Com
mission. the company proposed
to share the refund it got last
March from its natural gas
wholesalers. Atlantic Seaboard
Corp.
Customers who use gas only
for cooking or refrigeration will
realize a reduction averaging
about IL cents a month. Those
who heat their homes with gas
will find their bills lower by Sc
cents, according to company es-
Inmates. Credits would extend
through February. 1855. it was
estimated.
Would Credit Accounts.
The company asked that 1t be
allowed to make the refunds by
crediting accounts, rather than
by cash repayments, to save op-
irrational costs. Credits would
apply only to Washington and
Maryland customers. There are
about 250,000 of them.
OF even longer-range effect is
a second petition, asking the
Washington, Maryland and Vir-
ginia utilities governing bodies
to pc. nit the gas company to
adjust it retail rates automatic
cally whenever wholesale costs
change.
Under this proposal, consumer
rates would 60 up or down pro.
portionately to the cost of whole
sale natural gas. Other opera
tional costs would not enter into
this picture. Bills would be
credited accordingly. company
spokesmen said.
A third petition asks approval
Of a SIS million bond issue to
carry out routine gas service i'm
provements and extensions in
the Metropolitan area.
The immediate refund would
mean distribution Of about $474,-
900 to District customers and
nearly $3.50. 900 to Maryland gas
consumers. The period between
May 90. 1853. and last February
% would be covered by the Dis
trict refunds: between August J..
1853 and last February % for
Maryland consumers.
No Virginia Refund.
No refunds would be due Vir-
ginia customers since ther rates
were not increased in the crucial
period despite the rise in whole
sale charges to the gas company.
The requested automatic rate
adjustment provision could mean
a further reduction for area con-
sumers. the company declared.
This would be due in several
weeks" the company said. after
the Federal Power Commission
finally decides on the validity Of
the latest wholesale rates put
into effect by Atlantic Seaboard.
While downward adjustments
would probably be realized at
the outset. the requested clause
likely would result in higher
rates effective next November
when the latest schedule Of
wholesale price increases is due
to be imposed.
Atlantic Seaboard only recent
ly filed with the power commits
sion a petition for higher rates
that would cost Washington
area consumers an additional
SIT million annually.
Washington Gas Light wants
the adjustment proviso to shore
it up against the Natural Gas
Act governing wholesaler charges
for gas. This act permits whole
salers to charge higher rates
as soon as they file such petit
tions with the Federal agency.
These rates are subject to re-
view and final determination by
the power commission. But until
the final ruling is made. gas
retailers such as Washington
Gas Light must pay at the
higher rates. with the UNDER
standing that customers share in
the refund of any excessive
amount paid by retailer to
wholesaler.
The company pointed out. in
its application, that the auto
matte rate adjustment clause
would save the public. the regu-
latory bodies and the company
time and money. At present.
wholesale gas charge increases
can be Offset only by admins
trative proceedings and rulings
by the various public utilities
commissions.
If the request is granted. a
simple and inexpensive method
Of rejecting in charges billed to
customers the effect of uncon-
trollable variations in costs"
would be possible. the petition
stated.
The system Of crediting GUS
toners bills. rather than making
cash settlements. also would be
simpler and cheaper, according
to company officials. They rue
fully recalled a court-ordered
cash refund Of three years ago.
on which upwards Of $75,000 was
spent. This refund has yet to be
completed. since many former
customers cannot be located.
An automatic adjustment
based on wholesale costs is al
lowed gas companies in number
of States. officials Of the local
utility said in support of their
position.
Festival Due Saturday