Richmond Palladium (Daily), Volume 44, Number 316, 20 October 1919 — Page 8

THE RICHMOND PALLADIUM AND SUN-TELEGRAM, MONDAY, OCT. 20, 1919. 71 dka i ADVERTISEMENT :3 To the Patrons off the Richmond. and Power Company Heat hi Ma

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Light,

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In the issue of the Richmond Daily Palladium dated October 1 st, 1919, following the filing of petition for a revision of Natural Gas rates, this Company gave publicity to the terms of its petition, by verbatim copy of the same. The Public Service Commission of Indiana delivered its order upon such petition, October 1 8th, 1919, efective October 1 st, 1919. To the end that the patrons may understand likewise the terms of the crder, the same is printed verbatim herewith;

STATE OF INDIANA PUBLIC SERVICE COMMISSION OF INDIANA

ed favorable to the proposed increase of $.15 per 1 ,000 cubic feet in natural gas rates.

The present rates are as follows:

No. 4899.

In the Matter of the Petitiorji of The Richmond Light, Heat and Power Company, for authorky to increase rates. Rates Natural Gas Increase.

1 . A natural gas utility was authorized to increase its rates for natural gas from a schedule graduated from $.80 to $.30 per 1.000 cu. ft. to a schedule graduated from $.95 to $.45 per 1,000 cu. ft. and to increase its monthly minimum charge from $.70 to $.85 to cover an increase in the cost of gas furnished by a pipe line company, and increases in taxes. Appearances: For petitioner, Wilfred Jessup, Attorney; For City of Richmond, Byram Robbins, City Attorney. On September 23, 1919, the Richmond Light, Heat and Power Company filed with the Commission a petition for authority to increase rates on natural gas $.1 5 per 1,000 cubic feet. After due notice, the matter was heard October 4, 1 9 1 9, in the offices of the Commission at Indianapolis. The evidence reveals that petitioner has been paying the Logan Natural Gas and Fuel Company, a foreign corporation supplying gas from the West Virginia and Ohio fields, $.21 per 1,000 cubic feet for natural gas sold for industrial purposes, $.23 per 1,000 cubic feet for gas sold for domestic purposes, and $.21 per 1,000 cubic feet for leakage; that, effective October 1, 1919. the Logan Natural Gas and Fuel Company advanced the price of natural gas to all utility customers in Ohio and Indiana to $.35 per 1,000 cubic feet. Petitioner submitted in evidence a copy of the minutes of a meeting of the Common Council of the City of Richmond held September 19, 1919, showing that at such meeting a motion was adopt-

Rat

Consumption.

First 1,000 cu. ft. per month $.80 Next 1.000 cu. ft. per month 70 Next 1,000 cu. ft. per month 65

per month 60 per month 50 per month 40

All over 10,000 ft. per month 30 Minimum charge per month 80

Next 1,000 cu.

Next 1.000 cu. Next 5,000 cu.

ft. ft. ft.

Discount. $.10 .10 .10 .10 .10 .10 net .10

Net Rate $.70 .60 .55 .50 .40 .35 .30 .70

Petitioner desires to make a flat increase of $. 1 5 per 1 ,000 cubic feet straight through the schedule. It is obvious that the largest per cent of increase (50 per cent) would fall upon the heavy consumers, while those consuming 1 ,000 cubic feet or less per month would pay a 21.5 per cent increase. The evidence reveals that in 1913 petitioner entered into a contract with the Logan Natural Gas and Fuel Company for a term of ten years, which prescribed the rates at which the Logan Natural Gas and Fuel Company was to supply petitioner with natural gas, said rates being $.21 per 1,000 cubic feet for gas sold for industrial purposes. $.23 per 1,000 cubic feet for gas sold for domestic purposes, and $.21 per 1,000 cubic feet for leakage. It would seem that the increase in rates now demanded by the Logan Natural Gas and Fuel Company would result in the abrogation of that contract. The Commission is not uninfluenced by the fact that neither the City of Richmond, as indicated by the acation of the Common Council, nor petitioner shows any desire or inclination to carry the fulfillment of this contract to the courts, in view of the fact that such action might be prejudicial to good service, and might result in the loss of the supply of natural gas to the people of Richmond altogether. The testimony of witnesses appearing for the Logan Natural Gas and Fuel Company is that the principal object sought in increasing the price of natural gas to public utilities supplying Ohio and Indiana cities, is to Teduce the consumption of natural gas and conserve the limited supply.

The evidence reveals that because of re-assessment of its property. Petitioner's taxes will be increased more than $5,000.00 per annum, and that it is generally conceded by the City of Richmond that petitioner's rates must be increased. The only question is the amount of such increase. The Commission, being fully advised, is of the opinion that it should concur in the conclusion of the Common Council of the City. The Commission would be inclined to increase rates only to cover the increased cost of supply to the Richmond Light, Heat and Power Company, but for the fact that petitioner's taxes have been materially increased, that there is still an unmistakable upward trend of all operating costs and that the increase in rates may result in a decrease in consumption. The Commission find that an increase in rates will be necessary to meet the increased cost of gas and increased taxes and to yield an adequate return on the value of the property, which is approximately $450,000. IT IS THEREFORE ORDERED BY THE PUBLIC SERVICE COMMISSION OF INDIANA, that petitioner be. and it is. authorized to charge for natural gas sold to its consumers, the following scale of rates and charges:

First Next Next Next Next

Quantity 1.000 cu. ft.

1,000 cu. 1,000 cu. 1,000 cu. 1,000 cu.

ft. ft. ft. ft.

Next 5,000 cu. ft. All over 10.000 ft.

Rate. per month $.95 per month 85 per month 80 per month 75 per month 65 per month 60

per month 45

Minimum charge per month 95

Discount. $.10 .10 .10 .10 .10 .10 net .10

Net Rate $.85 .75 .70 .65 .55 .50 .45 .85

IT IS FURTHER ORDERED, that these rates be made effective as of October 1 , 1919, provided same are placed on file with this Commission on or before October 20, 1919. IT IS FURTHER ORDERED, that petitioner, the Richmond Light, Heat and Power Company, shall pay to the Treasurer of State, through the Secretary of this Commission, the sum of $23.88, expenses incurred by the Commission in the investigation of this cause. Approved October 14, 1919. Attest: Carl H. Mote, Secretary.

Inasmuch as the order of the Public Service Commission was not received until October 1 8th, and the new rate was effective October 1 st, it is necessary to proportion the amount of gas consumed by patrons on both the old and new rates, dividing the amount of gas consumed by 30, which will give the average consumption per day and compute the bills as follows:

Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters Meters

read Oct. 1 8thread Oct. 20thread Oct. 2 1 st read Oct. 22ndread Oct. 23rdread Oct. 24thread Oct. 25thread Nov. 1 stread Nov. 3 rdread Nov. 4thread Nov. 5 thread Nov. 6thread Nov. 7thread Nov. 8thread Nov. 1 Othread Nov. 1 1 thread Nov. 12thread Nov. 13 thread Nov. 1 4thread Ndv. 1 5thread Nov. 1 7th-

-1 7 days new rate, -19 days new rate, -20 days new rate, -2 1 days new rate, -22 days new rate, -23 days new rate, -24 days new rate, -3 1 days new rate, 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate 3 1 days new rate

1 3 days old rate. 1 1 days old rate. 1 0 days old rate. 9 days old rate. 8 days old rate. 7 days old rate. 6 days old rate, only. plus difference bet. plus difference bet. plus difference bet. plus difference bet. plue difference bet. plus difference bet. plus difference bet. plus difference bet. plus difference bet. plus difference bet. plus difference bet. plus difference bet. plus difference bet.

EXAMPLE

Presume patron's meter is read Nov. 11th. and he has consumed 3,000 cu. ft., all of this amount will be computed at the new rate, plus the difference in rates for the gas he has consumed from Oct. 1st. to and including Oct. 10th., he having already paid for gas consumed during this period at the old rate, but the order being effective Oct. 1st. the Co. is entitled to collect the same at the new rate. Presume that the patron has consumed 3,000 cu. ft. for the full month. Sept. 11th. to Oct. 11th., he has therefore consumed an average of 100 cu. ft. per day, or 1,000 cu. ft. for the first 10 days of October, this 1,000 cu. ft. will be computed at the 3rd. step of the new rate, as follows: 1 ,000 cu. ft. (new rate) at $ .70 3rd step new rate. First 1 ,000 cu. ft. (new rate) at 85 Next 1 ,000 cu. ft. (new rate) at 75 Next 1 ,000 cu. ft. (new rate) at 70 3,000 cu. ft., full month Oct. 1 1 th to Nov. 1 1 th

old and new rates for Oct. 1 st and 2nd. old and new rates for Oct. 1 st, 2nd and 3rd. old and new rates for Oct. 1 st to and including Oct. 4th. old and new rates for Oct. 1 st to and including Oct. 5 th. old and new rates for Oct. 1 st to and including Oct. 6th. old and new rates for Oct. 1 st to and including Oct. 9th. old and new rates for Oct. 1 st to and including Oct. 1 Oth. old and new rates for Oct. 1 st to and including Oct. 1 1 th. old and new rates for Oct. 1 st to and including Oct. 1 1 th. old and new rates for Oct. 1 st to and including Oct. 1 2th. old and new rates for Oct. 1 st to and including Oct. 1 3 th. old and new rates for Oct. 1 st to and including Oct. 1 4th. old and new rates for Oct. 1 st to and including Oct. 1 6th. EXAMPLE Presume patron's meter is read Oct. 25th, and he has consumed 3,000 cu. ft. 3,000 divided by 30 equals 100 cu. ft. average consumption per day. 6 days old rate, 600 cu. ft. 24 days new rate, 2,400 cu. ft. 600 cu. ft. (old rate) at 70c per 1 ,000 $ .42 Second 1 ,000 cu. ft. (new rate) at 75c per 1 ,000 75 Next 1,000 cu. ft. (new rate) at 70c per 1,000 70 Next 400 cu. ft. (new rate) at 65c per 1 ,000 25

Total Bill $3.00

Total Bill $2.13 600 cu. ft. computed at the first step of old rate. 2400 cu. ft. computed at the second, third and fourth steps of new rate.

All bills are due and payable at the office of the company upon the same dates as usual, no change in discount periods. It is important that all meters be read. Kindly make arrangements for meter readers to get statement of your meter at the usual time.

October 20, 1919

RICHMOND LIGHT, HEAT AND POWER COMPANY By N. H. JOHNSON, General Manager

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