standing idle. Even 90% of the time as much as 60% of the generating capacity is idle. This large investment of approximately $3,000,000 is required to insure continuous service to our customers during periods of low water or breakdown of generating capacity. Not only is it necessary to install this equipment but it is necessary to maintain a skilled operating force of sufficient size to operate the station to capacity throughout the year as it is impossible to predict for even a short time in advance, the load which will be thrown on the station.

The table (page 150) gives in a condensed form the operating results for each year from 1910 to 1920, the figures for 1920 being for ten months. This table brings out some interesting results.

In August 1918 Station 3 generated more kilowatt hours than was generated by all the Company's electric stations in any year period prior to 1913.

Although the installed generating capacity in kilowatts increased 233% from 1910 to 1920, the boiler capacity required to operate this higher generating capacity increased only 31%. The maximum monthly output increased 3132% although the installed generating capacity required for this generation increased only 233% or 80% less than the generation.

Although the coal costs increased 82%, the cost of coal per kilowatt hour due to more efficient apparatus and better operation decreased 412%. While the installed generating capacity in the engine room increased 233%, the cost of engine room labor increased only 57% due to the use of larger units and simpler design.

the Department of Labor, the average rate of pay from 1910 to 1920 increased 74.7%. At the same time our unit cost of labor per kilowatt hour decreased 592%.

These operating figures show the wisdom of the Management in adopting the policy of extending our steam generating equipment and the soundness of the engineering design, construction and operation.

Figure 6 shows graphically the increase in cost of coal per ton and the decrease in cost of coal per kilowatt hour from 1910 to 1920. The decrease in cost of coal per kilowatt hour from 1913 to 1914 was due to the better operation of the more efficient additions made to Station 3 over the old equipment displaced. In 1917 there was a sharp rise in coal prices with a corresponding rise in cost of coal per kilowatt hour.

Figure 7 shows graphically the relation between labor rates based on figures taken from the reports of the Department of Labor and our engine and boiler room labor costs per kilowatt hour As in the case of figure eight, the drop off in kilowatt hour cost in 1914 is due to the better operation of the additional more efficient capacity installed at Station 3.

In

The increase in kilowatt hour costs in 1915 was due to the very low kilowatt hour generation for that year. The sharp decrease in 1916 was due to the large kilowatt hour generation for that year, being the heaviest generation of any year up to that date. 1917 although labor rates increased materially, the kilowatt hour generation likewise increased and the kilowatt hour costs changed only a small amount. In 1918 labor rates rose still more sharply but this year was a year of unusually heavy generation as we were feeding power back into the Niagara system instead of taking power from it. This gave us an unusually good load factor so that the Based on the index figures used by kilowatt hour generation increased

Although boiler room labor increased 250% and engine room labor 57%, the cost of boiler and engine room labor per kilowatt hour decreased 5912%.

discontinuance of Niagara service and poorer water conditions with a correspondingly large decrease in cost per kilowatt hour.

It should be remembered that Station 3 is used not only for the purpose of generating current but also generates a very large amount of steam which leaves the Station through our high or low pressure steam distributing system to be used by our industrial and heating steam customers. The costs given in the table have been corrected for the steam sendout as far as possible. It is, however, extremely difficult to segregate certain operating charges and assign certain definite portions to

the generation of power and other definite portions to the generation of steam. There is a definite advantage derived from this combination load on the operation of the station as a whole, i. e., due to the steam generaated for heating and industrial purposes, the electrical load is carried more economically than would otherwise be the case and the converse of this is true. Therefore, the division of certain costs is not capable of absolutely definite assignment, and comparisons made between the figures given and figures for other straight electrical generating stations are likely to be misleading.

IRREFUTABLE LOGIC

"The great majority of people affected have realized that the utilities' expenses like their own have expanded, compelling increased revenues. There are some, however, who cheerfully pay $12 for a pair of shoes for which they formerly paid $5, 50 cents for a beefsteak for which they formerly paid 20 cents, and who complain bitterly if the cost of a utility's commodity is increased 25 cents per month, and accuse the Commission of favoritism toward the company if any increase whatever is allowed to meet growing wages and material prices. They seem to forget that the bulk of the expense in operating most utilities is labor, and that each member of the great army engaged in rendering public service is compelled to purchase the necessities of life at the same high cost that confronts us all. In fact, increases have been permitted by this Commission for the sole purpose of affording employees a living wage.

"We realize that it is not a popular thing to increase rates. It would be easy to deny such applications and pose dramatically as friends of the people, standing between them and corporate greed We occupy a position of great responsibility. We have it in our power to bring ruin and disaster to many hundreds of utilities and rend the financial fabric of the state It is very difficult now to secure capital for public service enterprise, and this Commission, by a rash stroke of the pen, could make it impossible in the state of Washington. We have endeavored in these trying times to save legitimate investment in utility properties from ruin, preserve the necessary public service to the people, and, at the same time, be just and fair to the patrons who pay the price If we should yield to the clamor of politicians, whose stock in trade is reckless denunciation of public utilities and abuse of the Commission for permitting them to live, the results would frighten even those irresponsible agitators."

From opinion in Case of Wenatchee V Central Washington Gas Co. P. U. R. 1920 C 871. Decided by Washington Public Service Commission.

GAS AND ELECTRIC NEWS of capital, together with the undivided

energies of thirteen hundred employees has scores of major operations and hundreds of less important ramifications. It is the earnest desire of the management of the Company that stockholders, employees and public alike become as fully informed as Photographer possible concerning all of them.

Industrial Sales

Domestic Sales
Electric Generation

Electric Distribution THE