Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-22
City Unit Hears Plea
For Gas Rate Rise
Firm Contends
Rise Is Needed
To Meet Costs
BY JAMES G. DEANE
star stan Writer

GtCICCb u. 6OOttlUy, pIcSls
dent Of Washington Gas Light
Co., today told the District
Public Utilities Commission
that the company urgently
needs a gas rate increase in
order TO maintain its financial
stability.
He said the company would
be remiss in its duty to its GUS
toners. as well as its stock
holders. If it did not seek a rate
increase.
Mr.. Boothby was the first
company witness at public
hearings at which the company
viii seek to justify its proposal
for an 8.8 per cent rise in gas
charges throughout the WASH
ington metropolitan area.
The company filed a formal
rate request on December 2
with the District Public Utili-
ties Commission, the Virginia
State Corporation Commission
and the Maryland Public Serv-
ice Commission.
States Set Hearings
The Virginia commission has
set hearings for January 20
and the Maryland body for Feb
ruary rs.
Mr.. Boothby told the COM
mission the proposed rate in
crease would amount to $4.3
million but that after taxes
this would net the company
about So million.
c. Oscar Berry. company
counsel. said this would amount
to an average Of 2 cents q day
for non-heating customer and
a little more than 4 cents q
day for a customer using gas
for heating and cooking.
The rate proposal is designed
to give the company a return Of
Z per cent on its rate base. Mr..
Boothby testified that the re-
turn for the year ended last
June 80 was close to 5 per cent.
The gas company head
blamed increases in operating
costs for the company's request.
Except for automatic upward
adjustments to meet natural
gas price rises. the company Is
still charging substantially the
same price as Is years ago. he
said.
Calls Boost Essential
He said q rate increase Is
essential to attract investment
capital needed for service ex-
pansion.
Unless our company's level
Of earnings is adequate" he
told the commission, ''it win
not be possible to attract po-
tential investors on a reason
able basis in the highly
competitive new capital mar
kets."
A spokesman for q citizens
association protested the pro-
posed rate increase in a brief
statement prior to Mr.. Roothby's
testimony.
Wallace MeGregor. who said
he represented the Capitol
Hill Southeast Citizens Asso-
citation. said his group was
against the increase. He ques-
toned the need for any SUBJ
stantial service expansion and
particularly protested against
having District residents pen
allied" by a rate rise designed
to finance service expansion in
Maryland and Virginia.
p. U. c. Chairman George Z.
c. Hayes announced that the
commission had received q
number Of letters and tele.
grams from other citizens as
sociations which he said will
be put in the record. He said
all Of them oppose the in
crease.
GSA to Intervene
The General Services Adj
ministration was granted per-
mission to intervene in the
case as representative Of
Federal Government agencies
which are among the COM
pany's customers. Mr.. Hayes
also announced that the hear
ing record will be submitted
to the Maryland and Virginia
commissions. M
Mr.. Boothby emphasized that
the company is anxious to
maintain the present uniform
Washington area gas rate. He