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THE POST, FRIDAY, NOVEMBER 14, 1952
| Higher Costs Hit Utilities—
Necessitating Rise In Rates
(Editor's Note: This is the sec-
ond of three articles on the func-
tions of the Penmsylvania Public
Utility Commission, It deals with
the handling of rate cases.)
With no letup in sight as the in-
flation spiral spins ever upward,
privately-owned utilities in Penm-
sylviania are caught in the wage-
price maelstrom along with com-
petitive industry.
Utilities, nevertheless, have been
required to expand their facilities
to meet increased service demands
until today their combined plant
investment stands at an alldtime
high of six billion dollars.
Higher operating costs on one
hand and expansion on the other
have brought many utilities before
the Public Utility (Commission seek-
ing rate increases, Both the fixed-
service type of utility—such as
electric, gas, telephone and water
—and ‘transportation = companies
have laid an ever-increasing mum-
ber of rate cases in the PUC’s lap.
One of the big questions in the
public mind is: What happens when
_a utility files mew rates? There's
no mystery about the way rates
are changed. Here in general, is
the picture:
Rate changes pare filed on 60
days’ notice tio the commission, ‘or
30 days in the case of common
carriers like ‘trains, buses and
trucks. When the rates are filed,
the PUC tamiff megulations require
the utility to submit with them,
under oath, pertinent supporting
data.
* Within a 60-day (or 30-day) per-
iod, the commission and its tech-
nical experts make a thorough
study of this supporting data, the
rate structure and overall earmiings.
If it appears beyond doubt that
the proposed rates do not contain
any unreasonable features and that
the anticipated earnings are not
excessive, the PUC may take no
action and thus ‘the rates become
effective automatically by law.
However, if in the commission's
opinion there is any question labout
lawfulness or reasonableness of the
rates, it can—and does—suspend
them for a total period of nine
months, An investigation them is
held to determine whether the rates
are just and reasonable.
The Public Utility Law and in-
terpretations placed on it by the
appellate courts have established
definite guides which must be fol-
lowed in determining whether rates
are reasonable—principally that a
utility must be allowed for its ser-
vice a fair return on the fair value
of its property used and useful in
the public service.
Under such precedent, the util-
ity’s fair value and allowable re-
turn are determined by the PUC
following public hearings, subject
to court review.
The PUC has mo jurisdiction lover
rates charged by municipal author-
ities, a fact not generally under-
stood. Further, it has authority
only over that part of a kity or
borough utility operation which ex-
tends outside of the municipality's
corporate boundaries.
During the abnormal period since
1940 with a constantly rising price
level—now highest in ‘the mation’s
history—plus the urgent necessity of
expending millions of dollars for
plant expansion, there frequently is
a deterioration in ‘the ratio of util-
ity earnings in relation, to the value
of property.
Many utilities, (therefore, have
been compelled to file rate increases
with the commission to maintain
their financial integrity and con-
tinue adequate service.
There has been a tremendous
expansion in public utility services
in Pennsylvania in the last decade.
Here are some statistics on the
strides made by miajor utility ser-
vices:
There were almost 3,100,000 elec-
tric customers at end of 1951, a 25
per cent increase over 1941. Plant
investment was $1,791,000,000, a
48 per cent boost. Annual electric
revenues reached $477,200,000,, an
increase of 88 per cent,
Telephone industry gains were
even more pronounced. The 3,300,-
000 stations served at end of last
year represented an increase of 95
per cent over 1941. Plant invest-
ment increased 90 per cent to $748,-
600,000. Annual revenues went to
$235,800,000 a 159 per cent in-
crease.
Growth of the telephone business
is reflected in fhe fact that while
only 44 per cent of the families in
the state had telephones in 1941,
the figure went up to 76 per cent in
1951, or ain increase of 73 per cent.
The gas industry had 1,558,000
consumers at end of 1951, an in-
crease of 27 per «cent. Plant in-
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DALLAS, PA.
Teen Clubbers
Start Season
"Y"* Building Open
Every Thursday Night
Teen Club of Back Mountain
Town and Country YMCA opened
its 1952-53 season last Thursday
evening for its seventh year.
The Club is operated by twenty-
five thigh school students, with
Counselors, forming the Teen Coun-
cil. Meetings are held in the Head-
quarters Building fin Shavertown.
Last season the Teen (Club supplied
recreation, dancing, fellowship and
friendship for 189 different young
people, most of whom reside in the
Back Mountain area,
All young people are invited to
attend. Table tennis, pocket bil-
liards, ‘table games, social and
square dancing occupy the hours
from 7 to 10:30 pm. each Thurs-
day night in the |Shavertown ’'Y’
Building, This year there has only
been one change in the rules in
respect to age. The minimum age
will be based on the age of mem-
bers of the 9th grade and the maxi-
mum age has been set for 19, no
matter whether the youth fis in, or
out of high school. The first series
of affairs will run from November
through February. Admission is by
Tenn [Club membership only. Full
details may be secured at ‘the Teen
Club any Thursday night.
Officers jof the Council are: Robert
Edwards, president; Ear] Hummel,
vice president; (Carol Bogart, secre-
tary land Robert Honitz, publicity.
Mr. and Mrs. Jack Porter are Coun-
selors to the Teen Council and the
Teen Club.
Daisy Mae To Pursue
Li'l Abner At Dance
Senior class, Dallas-Franklin
Township high school, will sponsor
a Sadie Hawkins Dance ‘tonight in
the school auditorium. Daisy Mae
and Li'l ‘Abner, chosen by popular
vote, will be presented during the
dance,
vestment of $525,200,000 was a 51
per cent hike over 1941. Annpal
revenues jumped 122 per cent to
$196,300,000. A substantial part of
the gas industry expansion is due
to fuel piped into Pennsylvania
from south-western natura] gas
| fields.
(The third and last article next
week relates primarily to the PUC'’s
railroad crossing safety work.)
Redskins Roll Up Victory 25-6
Over Wyoming Seminary Squires
BY JESSIE CAREY
Dallas-Franklin Township Red-
skins rolled up their second victory
of the season by defeating Wyoming
Seminary Squires 2546 on Memorial
Field Saturday.
Kiarl Landmesser started the game
rolling with a pass interception fol-
lowed by a 40-yard gallop to give
the Redskins their first touchdown.
The extra point was made by Tom
In the second quarter Landmesser
pitched a long pass to Riaubia on
the ten, He went for another tally
without any trouble. The extra
point was wide,
In the third quarter, Landmes-
ser tossed ‘a lateral to Sam [Fow-
ler, who crossed the goal line from
the thirteen yard line,
The enthusiastic Redskins weren't
satisfied with the score. In the
fourth period an intercepted pass by
Landmesser brought them to the
2-yard line. Tom (Williams carried
the ball over the finish line to
miake the score 25-0,
The determined Squires came
back in the last minutes of the game
by sending Al [Sisksapoulas over
from the four-yand line, bringing
the game to a climax with a final
score ‘of 25-6.
Post-mortem on ‘the game shows
that Dallas{Franklin did exception-
ally well on passing, completing
four out of eight. Squires completed
four out of fourteen.
Penna. Leads Nation
In Ice Cream Output
Pennsylvania in September once
‘again led all other states in pro-
duction of ice cream, The State
Department of Agriculture says.
Output for the month was 6,325,-
000 gallons, a drop of 11 per cent
from August, 3 per cent under the
September average for the five-
year period 1946-50, but 14 per cent
above production for September
1951.
Ice cream production in Penn-
sylvania for September this year
was over a million gallons greater
than the combined output for the |
states of Minnesota, Towa, Missouri,
North Dakota, South Dakota, Ne-
braska and Kansas, Federal {State
records reveal.
WITH ALL THE
TRIMMINGS
Includes Ice Cream
or Jello
@® Roast Beef
Fall Special
THIS SUNDAY
Southern, Fried
CHICKEN
ALSO
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® Roast Turkey
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1.35
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Main St.
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Here it is folks — a toy department
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In prices ranging from 50c to $50.00.
Come in and look around. Take ad-
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Shavertown
Yealuring
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Main Highway