ments, keeping records of each customer's account, sundry commercial administrative expenses, the fixed charges (taxes, depreciation, and interest) on the investment in the company-owned property on the customer's premises (service drop, meter, etc.), and the maintenance and servicing of such equipment. Most customers are familiar with these readily visible elements in the cost of rendering electric service and can understand how they may be assigned on a per-customer basis. Heretofore such costs have been merged with other costs and included in the prices for energy. It is the Commission's conclusion that the segregation of these costs in a separate portion of the rate, distinct from the prices for energy and paid, no matter how much energy is used, makes the rate more understandable to the customers, tends to place all customers on an equal footing, and makes it easier for the customer to check his own bill. The following rates are of the fixed-charge type and are designed to substantially reduce the bills of the major portion of the Company's residential customers. On the basis of present consumer data it is estimated that the proposed rates will yield a reduction not to exceed $100,000 a year for the Wisconsin territory of the Company and Midland Public Service Company. This reduction is equal to approximately 10 percent of the Company's present revenues from residential customers. Part of this reduction has already been sustained, due to the application of the lowcost rate plan. The proposed rates are as follows: Fixed charge per month-net- Where maximum demand is greater than 5 kilovolt-amperes the number of kilowatt-hours in the second and third energy blocks shall be increased 100 and 200 kilowatt-hours, respectively, for each whole kilovolt-ampere in excess of 5. * Class A Communities.-LaCrosse, Eau Claire, Chippewa Falls, Sparta, Menomonie. * Class B Communities.-Abbotsford, Alma, Altoona, Blair, Cameron, Ellsworth, Elmwood, Greenwood, Independence, Loyal, Mondovi, Neillsville, Owen, Spring Valley, Stanley, Thorp, Whitehall, Viroqua. *Class C Communities.-All other communities. Availability.-Available for residential use only, for lighting, incidental use of appliances and domestic power, heating and cooking served through one meter. Minimum Charge.-The minimum monthly charge is the fixed charge. Prompt-Payment Provision.-A charge of 5 percent will be added to the bill computed at the rates shown above, which charge shall constitute a discount for payment of bill within 10 days from date thereof. Determination of Maximum Demand.-A customer using less than 250 kilowatt-hours per month shall be considered as having a demand not in excess of 5 kilovolt-amperes. A customer using 250 kilowatthours or more per month for three consecutive months will have a demand determined by measurement by a thermal demand indicator, and the highest monthly demand measured during the 12-month period ending with the current month shall be used for billing purposes. Application of Residential Rates 1. This rate is available for residential use only, for lighting, heating and cooking, and domestic-power service in one separate residence, except as hereinafter provided. 2. (a) All classes of domestic illuminating, heating, cooking and power-consuming devices, used strictly for household purposes, may be supplied through one meter. (b) Household motors supplied through the residential meter shall not interfere with the lighting service and shall not disturb the service to neighboring customers. Motors shall not exceed the Company's starting current limits. Such motors shall not exceed 2 horsepower each and the total motor load shall not exceed 5 horsepower. 3. Only single-phase service, rendered through one meter, is available under this rate. 4. A customer occupying a building or apartment for residential and commercial purposes jointly may combine his residential and commercial use on such commercial rates as are available for the respective classes of service, but not under this rate. 5. In apartment buildings each apartment shall be classed as a separate residence. At the option of the landlord or agent, service to all apartments in a building may be measured through one meter and billed at the residential rate, in which case the blocks of the energy charge shall be multiplied by the number of apartments and one fixed charge shall be applied for each four apartments (or fraction). The janitor's quarters shall be classed as an apartment. Definition of Apartment (a) An apartment is defined as a portion of a building, consisting of two or more rooms completely equipped for living purposes. (b) In buildings where five or more rooms, exclusive of apartments, are rented or are for rent, each five rooms or fraction thereof (real estate rating), exclusive of apartments, shall be counted as an apartment. 6. The public portion of apartment buildings, such as lobbies, halls, laundry rooms, boiler rooms, etc., and power equipment, such as coal stokers, oil burners, air conditioners, elevators, etc., shall be served on such commercial rates as are available for the respective classes of service. As is always the case where rates of the fixed-charge type are substituted for rates of a different design, some monthly bills will be increased. In this particular case, practically all the monthly bills of three-room customers will be increased, as well as some of the bills for four-room customers and customers living in larger houses with abnormally low consumptions. In total, for all communities, about 75,000, or 21.5 percent, of the monthly bills during a year for residential-lighting service will be increased although, of course, the percentage of customers increased on an annual basis would be considerably less. With the introduction of the above rates the following present residential-lighting schedules of the Company should be withdrawn: Schedules Lc-1, Le-2, Lc-3, La-1, La-2, La-3, Le-4, Led-1, Lc-5. Also, it appears that Schedules Pak−1, Pak-2, and Pak-3, applicable to heating and cooking service, should be withdrawn. COMMERCIAL-LIGHTING SERVICE The present standard rates of Northern States Power Company and Midland Public Service Company are of the block type and have remained unchanged since 1929. In addition, the Company also has in effect several commercial schedules of the connected-load type. It appears from the past record of rate revisions that commercial-lighting customers have not received equitable consideration in the allocation of available rate reductions. As a consequence, the level of commercial-lighting rates is high in comparison with the level of rates to other classes of customers. In addition, the present commercial-lighting rates are seriously lacking in promotional features. The lowest step on any of the schedules is 4.275 cents net per kilowatt-hour, and in most cases it is 4.75 cents per kilowatt-hour. Obviously, better-lighting campaigns and the promotion of the use of additional appliances are seriously handicapped where the rate schedules do not provide for energy at a rate lower than 4.275 cents net per kilowatt-hour. In connection with the discussion of residential service we have heretofore explained the advantageous features and purposes of rates of the fixed-charge type. The arguments for the fixed-charge type of rate apply with equal force to commercial-lighting service. As in the case of residential service, schedules of the fixed-charge type have been designed to replace all of the Company's present schedules for commercial-lighting service. An additional promotional feature not included in present schedules is a provision to permit a total power load of not over 5 horsepower with no individual motor over 2 horsepower to be served through the same meter and under the same rate. This should prove beneficial to both the customers and the Company since it reduces the customers' bills for small-power service and eliminates the necessity for two services and meters on the part of the Company. On the basis of present consumption it is estimated that the proposed rates will reduce the bills of commercial customers about $101,000, exclusive of the new feature of additional power permitted under the rate schedule. It is difficult to estimate the additional reduction resulting from the additional power permitted but we do not believe it will bring the total reduction to more than $110,000 per year for the Wisconsin portion of Northern States Power Company and Midland Public Service Company. The $110,000 is in excess of 16 percent of present revenue and will affect nearly all customers. Because of the change in the type of rate schedule some bills with less than normal consumption will be increased. It is estimated that 16,000 monthly bills, or about 22 percent of the total monthly bills, will be increased by relatively small amounts. Since practically all of these increases occur at less than normal consumption, most customers will pay less on an annual basis under the new rates. The proposed rates are as follows: Fixed charge per month-net First 100 kw-hrs. per mo.-net per kw-hr... * Class A Communities.-LaCrosse, Eau Claire, Chippewa Falls, Sparta, Menomonie. *Class B Communities.-Abbotsford, Alma, Altoona, Blair, Cameron, Ellsworth, Elmwood, Greenwood, Independence, Loyal, Mondovi, Neillsville, Owen, Spring Valley, Stanley, Thorp, Whitehall, Viroqua. Class C Communities.-All other communities. Availability.-Available for lighting, socket appliances, cooking and heating equipment totaling not more than 10 kilowatts and small single-phase motors totaling not more than 5 horsepower. No individual cooking and heating unit to exceed 3,000 watts, and no individual motor to exceed 2 horsepower. Minimum Monthly Charge. The fixed charge of 79 cents gross, 75 cents net, for lighting, socket appliances, cooking and heating equipment totaling not more than 1 kilowatt. and 50 cents net per kilowatt of total heating and cooking installation in excess of 1 kilowatt. Plus 50 cents net per horsepower of total motor installation in excess of 1 horsepower. Delayed-Payment Provision.-The net bill will be increased 5 percent of the first $25 plus 1 percent of the excess if payment is made after expiration of the prompt-payment period of approximately 10 days. The installation of the above rates will supersede all of the Company's present commercial-lighting schedules which should be withdrawn. The schedules to be withdrawn are Lb-1, Lb-2, Lb-3, Lb-4, Lb-5, Lb-7, Lb-8, La-1, La-2, La-3, and Lbd-1. COMMERCIAL COOKING AND HEATING SERVICE In addition to schedules Pak-1, Pak-2, and Pak-3 which are general heating and cooking rates available to both residential and commercial customers, the Company has two schedules, Pbk-1 and Pbk-3, available for commercial-heating and cooking service only. As previously pointed out. we believe that the present schedules Pak-1, Pak-2, and Pak-3 should be withdrawn. In lieu of the present commercial-heating and cooking schedules the following schedule is proposed to be available in all communities served by the Company. Availability. Available for electric-heating and cooking apparatus, including the following: Ranges, ovens, glue pots, lead-melting pots, |