USA > Massachusetts > Middlesex County > Reading > Town of Reading Massachusetts annual report 1928 > Part 16
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Plans have been made and material purchased to increase the feeders on this line between the power, station and the junction of Lowell and West Streets in order to overcome voltage drop and reduce line losses.
Additional transformer capacity to supply service for about 100 horse power has been installed at the plant of the Wilmington Packing Company on Eames Street.
The Reading Rubber Manufacturing Company and Sanford Mills have added about 200 horse power load to our lines and I understand that about 300 additional horse power will be installed during the coming year. The Boston Stove Foundry are considering the installation of about 100 K. W. additional load at their John Street foundry.
Christmas Decorations
Continuing the custom of the two previous years, the Department installed lines of colored light's on Main, Haven, Harnden and Ash Streets. The small park between Main and Ash Streets was decorated and about 100 small trees attached to poles located on several streets near the Square were lighted with out-door Christmas tree sets. Two large trees on the Com- mon and one at Ernest Leach Park were lighted and a group of smaller trees on the grass plot on West Street at County Road were decorated with out-door Christmas tree sets.
211
In all, approximately 3,600 lamps were lighted from December 15th, through New Year's day.
The cost to the Department for labor, current and materials used was as follows:
Labor and truck, installing and removing $584.44
30.00
100 trees
40.92
186 lamps renewed
5,880 kilowatt hours at 2.7 cents
158.76
Total $814.12
The prizes offered by the Reading Board of Trade for home decora- tions were in a large measure responsible for the increased illumination of homes and stores.
Reading, at Christmas time, was again the Town which I believe was not excelled by any other Town or City near us in its electrical illumina- tions.
New Office and Salesroom
In accordance with the vote of the Town, we have negotiated an agreement for ten years, with Martin B. Hartshorn, covering a lease of the building and land at 177 Main Street which we took possession of on September 1st. The building is of cement block construction, with brick front and tar and gravel roof. It is 36 feet wide and 80 feet deep with a basement under the entire structure. Three large show windows permit an attractive display of electrical appliances. A room in the front is used for a salesroom and the display of lamps and appliances. The main office is on the South Side of the building. On the North side are the offices for the sales department, and Manager, and in the rear is the meter room and service department.
In the Northeast corner of the basement is a fire proof storage vault constructed in accordance with state requirements in which the records of the Department are stored. A room in one corner of the basement is being fitted for the demonstration of ranges and other appliances. The balance of the basement area is used for the receiving and shipping room, repair department and storage of supplies. A large space in the rear of the build- ing affords ample opportunity for parking and avoids congestion on the street.
Under the terms of our agreement, we are to pay the owner an amount equal to 6 per cent per annum on the cost of the building and land, and in addition to pay the cost of taxes, insurance and repairs. The following is the estimated annual cost to the Department:
Cost of land
$ 4,521.40
Cost of Building
12,976.97
Total
$17,498.37
212
6ºc on this amount is
1,049.90
Taxes (estimated)
450.00
Insurance . .
61.10
Repairs (estimated)
100.00
Total
$ 1,661.00
or an average monthly rental of
$ 138.42
The cost of fitting up the new quarters was $1,164.98 and the cost of moving $454.27.
READING MUNICIPAL
LIGHT DEPARTMENT ELECTRIC LIGHT, HEAT AND POWER
New Headquarters
---
New Salesroom
New Business Office
-
216
THE NEW RATES FOR RESIDENCE SERVICE
On September first we adopted a new schedule of rates for residence service, which is not unusual in form but is decidedly novel in its working or in its effect on the customer's bill.
The new schedule replaced the flat rate schedule which has always been used here, under which the consumer paid the same rate per kilowatt hours irrespective of the quantity consumed. The flat rate schedule of 7.2 cents net per kilowatt hour for residence service, offered no inducement to the consumer to make additional use of his lighting, or to make use of the various household appliances, as the cost increased in direct proportion to the amount of current used.
There has been for years a special rate of 2.7 cents net per kilowatt hour for current used for cooking, heating and refrigeration but in order to secure this rate it was necessary for the consumer to install special wiring and purchase and install certain appliances in order to obtain the low rate. It also required the installation of an additional meter, and the rendering of two monthly bills. Even then it was not possible to obtain the full bene- fit of the special rate unless the special wiring was extended to every room in the house, as well as the garage.
A few years ago, in order to relieve the consumer of the expense of installing duplicate wiring and eliminate one meter and the necessity of keeping two sets of accounts with a residence customer, we offered a com- bination residence rate to those customers who installed a range, water heater or refrigerator. Under this rate the first 25 kilowatt hours per month cost 7.2 cents net per kilowatt hour and the excess 2.7 cents net per kilowatt hour.
This rate was optional and less than half of the customers who used electric cooking took advantage of it and it did not benefit those who did not have a range, refrigerator or hot water heater. As the rate applied only to a comparatively small number of customers, it was claimed by others to be discriminatory, because it did not take into account the amount of current used.
Under the new schedule, all restrictions are removed and customers are enabled to make full use of the service for any purpose in any part of the premises.
The new rates are simple and easily understood.
The first 25 kilowatt hours per month cost 7.2 cents net per kilowatt hour.
The next 25 kilowatt hours per month cost 4.5 cents net per kilowatt hour.
217
All current in excess of 50 kilowatt hours per month costs 2.7 cents net per kilowatt hour.
It is doubtful if there is a more favorable rate for residence service anywhere in the State. As an illustration of the benefit of the new rate to the customer, the following comparison of the bills of one customer for four months is interesting :
1927 Old Rate
1928 New Rate
Month
K.W.H. Net Bill
Av. Rate K.W.H. Net Bill Av. Rate
September
51
$3.67
7.2
63
$3.28
5.2
October
61
4.39
7.2
111
4.57
4.1
November
68
4.90
7.2
118
4.76
4.0
December
84
6.05
7.2
133
5.17
3.9
Total
264
$19.01
7.2
425
$17.78
4.18
Increase in kilowatt hours used 61 per cent
Decrease in net rate 42 per cent
Decrease in amount of bill 6.4 per cent
It thus becomes possible for any residence customer to materially in- crease his usage of lights or appliances without a corresponding increase in his bills, provided that his present monthly bill is at least $1.80, net.
My estimate of the expenses of the plant for 1929 and the anticipated revenue, is submitted herewith and is followed by data from the office rec- ords :
ESTIMATE FOR 1929 Expenses
For Operation, Maintenance and Repairs
$174,162.00
For Interest on Bonds and Notes
3,575.50
For Depreciation at 4% on cost of Plant
27,186.35
For Bond Payments
11,500.00
For Note Payments
2,300.00
For Taxes
2,000.00
For Uncollectible Operating Revenues
2,500.00
Total Expenses
$223,223.85
Income
From Sales to Private Consumers
$228,301.50
From Sundry Sales
500.00
From Tax Levy
For Municipal Department
$ 5,000.00
For Street Lights
13,000.00
18,000.00
Total Income
$246,801.50
218
Respectfully submitted,
ARTHUR G. SIAS, Manager.
The Manager's report as herewith submitted is approved by the Electric Light Commissioners.
HENRY R. JOHNSON
HERBERT G. EVANS HARRY P. BAKER
Municipal Light Board.
DATA FROM RECORDS OF PLANT
Kilowatt Hours Manufactured
None
Kilowatt Hours Purchased
5,097,768
Kilowatt Hours for Reading Street Lights
259,482
Kilowatt Hours Sold
4,152,222
Kilowatt Hours used at station and office
25,625
Kilowatt Hours unaccounted for
914,041
Coal used-net tons
204
Average cost of coal per net ton
$
6.354
Poles added and renewed
501
Feet of Wire added
195,104
New Services Installed
319
New Street Lamps Installed
30
Connected Load Dec. 31, 1928
Number of customers
5,114
Horse Power in Motors
1,723.5
Number of Public Street Lights
1,626
Number of Private Street Lights
29
READING
Number of customers Dec. 31, 1928
2,868
Number of 40 candle power public street lights
3
Number of 60 candle power public street lights
524
Number of 100 candle power public street lights
15
Number of 250 candle power public street lights
80
Number of 600 candle power public street lights
46
Number of 1000 candle power public street lights
4
Number of 60 candle power private street lights
14
Number of 100 candle power private street lights
3
Number of 250 candle power private street lights
1
Horse Power in Motors
1,346.3
Income for year
$144,165.94
LYNNFIELD CENTRE
Number of customers December 31, 1928
376
Number of 40 candle power public street lights
147
Number of 40 candle power private street lights
1
Horse power in motors
19.1
Income for year
$12,303.32
219
NORTH READING
Number of customers December 31, 1928
687
Number of 40 candle power public street lights 290
Number of 40 candle power private street lights
6
Horse power in motors 160.8
Income for year
$26,050.83
WILMINGTON
Number of customers December 31, 1928
1183
Number of 40 candle power public street lights 504
Number of 600 candle power public street lights 14
Number of 40 candle power private street lights
4
Horse power in motors 197.3
Income for year
$45,692.04
, COST OF DISTRIBUTION SYSTEM IN OUTSIDE TOWNS
LYNNFIELD CENTRE
Total Investment December 31, 1928:
Poles, Fixtures & Overhead Cond. $ 23,448.93
Consumers' Meters
4,179.35
Line Transformers
2,540.25
Street Lighting Equipment
1,565.56
$ 31,734.09
NORTH READING
Total Investment December 31, 1928:
Poles, Fixtures & Overhead Cond. $ 52,160.90
Consumers' Meters
7,824.43
Line Transformers
6,403.90
Street Light Equipment
2,620.55 $ 69,009.78
WILMINGTON
Total Investment December 31, 1928:
Poles, Fixtures & Overhead Cond. $ 90,655.81
Consumers' Meters 11,427.67
Line Transformers 8,283.65
Street Lighting Equipment $ 4,083.74 $ 114,450.87
Total Investment-Outside Towns
Income-Outside Towns 1928
$ 215,194.74 $ 84,249.03
TABLE A
Income from
$25,668.87
$ 604.88
$10,000.00
$ 270.00
$13,228.57
$3,271.76
$4,429.32
$2,535.75
$3,556.00
$4,000.00
135,992.62
1911
31,317.40
410.77
5,800.00
1,000.00
13,066.25
6,353.77
5,753.84
2,767.00
4,079.78
4,500.00
144,714.06
1912
37,171.93
599.07
5,000.00
5,500.00
17,546.87
5,605.41
5,605.18
3,018.21
4,143.80
7,200.00
173,091.96
1913
44,664.70
671.87
6,000.00
5,076.19
20,054.99
10,705.42
10,214.88
3,515.40
4,788.80
6,800.00
202,518.81
1914
49,799.75
791.14
4,500.00
4,132.07
19,014.03
7,784.82
8,697.05
4,453.33
6,051.08
9,000.00
233,509.58
1915
51,603.32
640.25
10,500.00
none
18,292.78
10,329.83
7,730.32
4,640.42
6,972.28
9,500.00
254,349.09
1916
61,900.01
911.69
5,000.00
none
22,261.19
13,986.22
8,316.39
4,704.99
7,597.47
10,800.00
269,898.27
1917
67,593.64
2,422.92
8,750.00
none
30,460.16
14,557.81 13,572.51
11,311.54
6,882.24
8,529.85
14,800.00
348,871.08
1919
100,844.10
1,100.11
14,450.00
none
45,006.98
13,864.14
13;874.46
7,416.21
10,419.76
14,800.00
389,564.73
1920
126,152.11
1,094.66
11,000.00
none
56,187.74
17,085.95
17,142.48
7,850.70
15,507.13
18,300.00
421,048.20
1921
135,886.69
219.20
17,500.00
none
52,738.98
24,453.15
16,594.65
7,423.10
16,767.55
19,300.00
449,540.12
1922
155,505.14
451.50
15,300.00
none
55,137.36
22,473.04
38,489.58
6,807.64
17,959.59
16,800.00
477,852.76
1923
166,783.32
464.31
14,800.00
none
62,619.57
20,247.54
15,607.11
6,437.28
19,011:08
15,800.00
505,983.28
1924
177,889.16
1,373.72
12,000.00
none
61,286.63
25,898.28
30,817.91
6,174.57
20,136.30
15,800.00
530,147.28
1925
185,492.72
1,112.19
11,000.00
none
73,140.10
28,272.55
34,188.95
5,482.46
21,102.86
13,800.00
568,524.09
1926
201,956.03
467.05
12,000.00
none
88,478.94
29,349.46
31,167.10
5,100.14
22,637.93
12,800.00
615,915.35
· 1927
221,343.72
599.88
13,500.00
none
67,661.31
50,863.76
34,551.95
4,763.62 24,533.58
15,800.00
651,367.92
1928
228,414.97
585.27
13,500.00
none
67,410.22
55,481.57
44,676.08
4,062.79 25,951.68
14,800.00
682,234.74
December 31
Year
Sale of
Electricity
Income from
Other Sources
Appropriations
from Tax Levy
Street Lights
Appropriations
from Tax Levy
Construction
Production
Expense
Distribution
and Utilization
Expense
Miscellaneous
Expense
Interest
Depreciation
Bond and
Note Payment
Total Cost of Plant
285,428.29
1918
78,096.09
1,537.86
11,000.00
none
41,006.13
11,577.08
5,070.43
8,096.95
11,300.00
for
for
1910
TABLE B
Year
K. W. H. Generated
K. W. H.
Purchased
K. W. H. Sold
K. W. H.
Delivered to
Read'g St. Lights
K. W. H. Used to
Stat'n Stock R'm
& Appliance R'm
K. W. H.
Unaccount for
Net Tons of
Coal Used
Average Cost of
Coal Per Ton
Number of
Customers
Number of
Street Lights
Horse Power in Motors
1910
698,597
300,861
227,100
16,269
154,367
1,748.3
3.461
738
269
116 1-2
1911
771,011
367,317
244,055
15,403
144,236
1,807.6
3.341
888
382
215
1912
919,282
481,801
242,033
13,307
182,141
2,247.8
3.741
1,078
698
242 1-4
1913
1,045,592
599,893
255,744
15,283
174,672
2,680
3.941
1,263
903
272
1914
986,476
578,709
187,590
15,283
204,894
2,496.4
3.666
1,390
993
313 7-10
1915
980,688
548,607
156,505
10,403
265,173
2,298.2
3.578
1,599
1,181
381
1916
1,231,677
751,735
170,810
13,916
295,216
2,741.7
3.934
1,805
1,225
441
1917
1,291,216
812,507
168,535
12,464
297,710
3,086.7
6.348
1,964
1,295
492
1918
1,318,546
976,121
125,820
10,573
206,032
3,348.8
7.875
2,083
1,303
672
1919
2,056,834
1,358,028
172,948
189,067
336,791
3,640
7.517
2,333
1,339
886
1920
2,297,237
1,444,960
175,704
257,999
418,574
3,615
10,352
2,617
1,363
812.5
1921
2,193,092
1,471,698
178,892
146,206
396,296
3,308.4
10,171
2,939
1,473
1,120.5
1922
2,609,076
1,583,716
183,250
276,477
565,633
3,791.5
9.00
3,234
1,481
1,197.5
1923
3,039,677
3,520
2,046,848
183,935
342,189
470,225
4,577.7
8.94
3,666
1,494
1,367.5
1924
3,572,588
2,463,602
209,738
392,281
506,967
3,379.5
6.503
4,058
1,537
1,281 .8
1925
4,051,182
25,495
2,848,309
241,476
383,152
578,245
6,317.7
6,358
4,472
1,572
1,395.2
1926
3,600,580
819,787
3,071,944
249,386
366,352
732,685
5,740.2
6,488
4,786
1,602
1,429
1927
406,693
4,396,397
3,676,545
261,361
58,249
806,935
947
6,609
5,017
1,635
1,630.9
1928
None
5,097,768
3,898,620
259,482
25,625
914,041
204
6,354
5,085
1,655
1,723.5
222
TABLE C Production Costs Per K. W. H. Based on Total K. W. H. Delivered at Switchboard
K. W. H.
Total
Year Purchased
Fuel
Labor
Repairs and other Station Expense
Costs
1910
.0086
.0075
.0026
.0187
1911
.0078
.0069
.0021
.0168
1912
.0091
.0071
.0027
.0189
1913
.0101
.0070
.0020
.0191
1914
.0092
.0082
.0017
.0191
1915
.0085
.0087
.0013
.0185
1916
.0087
.0071
.0022
.0180
1917
.0144
.0075
.0015
.0234
1918
.0200
.0085
.0025
.0310
1919
.0133
.0066
.0019
.0218
1920
.0162
.0071
.0009
.0242
1921
.0153
.0077
.0009
.0240
1922
.0131
.0066
.0014
.0211
1923
.0134
.0057
.0014
.0205
1924
.00979
.0055
.00166
.01695
1925
.00991
.0054
.00272
.01803
1926
.0285
.01034
.0056
.00212
.0200
1927
.01116
.01205
.00246
.00390
.01743
1928
.01227
None
.00170
.00225
.01622
TABLE D
Average Cost Per K. W. H. As Defined by Chapter 164, General Laws
1
1912 1913 1914 1915 1916 1917 1918 1919 1920
Operating Costs :
.0397 .0483 .0362 .0586 .0467 .0577 .0538 .0509 .0558
Fixed Costs :
0198 .0176 .0254 .0299 .0261 .0249 .0274 .0213 .0259
Total Costs :
.0595 .0659 .0616 .0885 .0728 .0826 .0812 .0722 .0817
1921 1922 1923 1924 1925 1926 1927 1928
Operating Costs
0640 .0561 .0494 .0377 .0442 .0448 .0395 .0414
Fixed Costs :
.0330 .0278 .0185 .0138 .0131 .0129 .0115 .0116
Total Costs :
.0970 .0839 .0679 .0515 .0573 .0577 .0510 .0530
ACCOUNTS PAYABLE-December 31, 1928
American Ironing Machine Co.
$ 230.95
American Railway Express Co.
10.24
Addressograph Co.
17.25
Abbott, H. L.
2.00
Ansonia Electrical Co.
1,216.49
223
Buckminster, Geo. H. Co.
2,026.15
Bowen, C.
1.75
Boston & Maine R. R.
15.86
Bennett, Van I.
46.95
Bailey, J. Brinton
72.36
Burke, Frank
102.65
Cummings Express Co.
42.98
Clapp & Leach, Inc.
30.19
Century Electric Co.
4.66
Conover Co.
83.70
Charles, M. F.
22.25
Central Garage
7.82
Currell, E. B. & Son
20.22
Dyer Clark Co.
201.90
Dayton, Paul W.
105.75
Dustbane Mfg. Co.
8.32
Dickinson, O. L.
8.00
Dickinson, L. W. & Sons
18.00
Davis Transformer Company
74.80
Davis, Louis
9.47
Davis, Geo. W. Co.
7.75
Electric Time Co.
9.84
Electric Specialty Co.
.75
Edison Electric Co.
13,128.20
Eureka Vacuum Cleaner Co.
3.13
Eaton, Frank S.
5.40
Eames, Ernest W.
40.00
Franchur, Inc.
11.75
Fife, T. C. Inc.
3.80
Federal Engraving Co.
4.58
Francis Bros.
.48.07
Graybar Electric Co., Inc.
715.19
Goodheart Co., The
270.05
General Electric Co.
2,811.04
Gulf Refining Co.
119.36
Gillis, J. W. & Co.
3.13
General Motors Truck Co.
1.75
General Electric Supply Corp.
419.24
Granite State Electric Supply Co.
202.50
Geier, P. A. Co.
506.25
Hynes & Cox, Electric Corp.
218.20
Hygrade Lamp Co.
312.70
Hartshorn, Martin B.
814.44
Hoover Co., The
147.96
Harnden, E. E.
42.84
Hardy, F. S. & Co.
27.90
.
224
Ide, Geo. W. S.
25.00
John St. Garage
.75
Johnson, C. C. .
1.50
Jefferson Glass Co.
18.25
Joslin Show Case Co.
110.00
Kelvinator Sales Corporation
437.07
Kenney Service Station
125.65
Lowell Electric Light Corp.
12.66
Lindsay, Alex
2.50
Landers, Frary & Clark
51.72
Linscott Motor Co.
5.45
Lewis Electrical Supply Co.
92.13
Lightolier Co.
41.70
Laffin, D. M.
12.50
Martell, A. E. Co., Inc.
59.46
Marshall, George W.
2.45
Mass. Dept. of Public Works
273.92
Mass. Reformatory
200.42
M. P. A. Associates of Boston
24.00
N. E. Tel. & Tel. Co.
116.95
National Lamp Works
652.46
Prentiss & Parker
960.41
Reading, Town of, Sewer Dept.
S.40
Robbins-Phalon Co.
301.38
Roeblings, John A. Sons Co.
142.00
Remington-Rand Service Co.
210.00
Reading Motor Co., Inc.
73.08
Rome Wire Co.
609.64
Stembridge, S. R.
10.50
Standard Underground Cable Co.
13.75
Spaulding Moss Co.
1.21
Smith, Fred F.
36.55
Salem St. Service Station
.70
Sager Electric Supply Co.
13.00
Steele Furniture Co.
40.00
Simplex Wire & Cable Co.
40.87
Sweetser, Percy N.
90.36
Twombly, W. E. & J. F.
165.43
Totten, R. W.
56.24
Vye-Neill Co.
771.61
Wright, M. S. Co.
20.50
Wetmore-Savage Co.
1,931.09
Wahn, Geo. H. Co.
511.53
Willis, W. H.
2.25
Westinghouse Elec. & Mfg. Co.
302.64
Wallace, F.
4.29
225
Walker Pratt Mfg. Co.,
90.00
Wakefield Radiator Co.
3.50
Wendell Bancroft Co.
16.65
Yawman & Erbe Mfg. Co.
69.67
Zanni, Angelo
24.00
Total
$32,888.57
$ 155.75
155.75
$32,732.82
REPORT OF AUDITOR FOR THE YEAR 1928
January 31, 1929;
Municipal Light Board:
Reading, Mass.
Gentlemen :- Complying with your order, we have made an annual audit and examination of the books and records of the Municipal Light Department for the year ending December 31, 1928.
The Exhibits and Schedules listed below are attached as part of our report :
Exhibit
"A"-Comparative Balance Sheet-December 31, 1928-1927
"B"-Comparative Operating Statement-January 1 to December 31, 1928-1927
"C"-Comparative Profit and Loss Analysis-January 1 to December 31, 1928-1927
"D"-Comparative Detail of Electric Income-January 1 to December 31, 1928-1927
"E"-Comparative Detail of Electric Expenses-January 1 to December 31, 1928-1927
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Schedule
I-Bond and Note Record and Accrued Interest December 31, 1928 II-Accounts Payable-December 31, 1928
III-Bonded Employees-December 31, 1928
Plant Investment-$415,679.50
Additions to plant amounting to $30,866.82 have been made during the year. This consists principally of services and extensions, with ordinary increases in other accounts.
Depreciation amounting to $25,951.68 has been written off this year, besides $22,159.76 having been spent for Maintenance charges.
General Equipment-$12,371.51
This class of fixed assets shows a net increase of $4,952.69 over 1927. A large part of this is accounted for through the purchase of additional office equipment for the new office and store on Main Street.
Current Assets-$90,339.93
Petty Cash Fund-$250.00
This fund was counted and found to agree with the ledger control. All payments from this fund were current.
Consumers' Deposit Fund-$2,235.75
This is a separate fund which is handled by employees of the department. It was verified and reconciled with bank statement.
Accounts Receivable-Consumers-$19,167.67
Individual customers balances were checked and found to agree with the control.
An amount of $3,440.74 or 18.0% was found to be 90 days or more in arrears.
Bad Debts in the amount of $1,023.62 have been written off this year in this class of Receivables as being uncollectible.
Accounts Receivable-Miscellaneous-$15,913.21 ,
The individual customers ledger accounts were checked and found to agree with control.
Bad debts amounting to $1,748.21 have been written off this year being considered worthless.
Materials and Supplies-$52,773.30
Inventories of various classes of supplies have been taken by employees of the department. These were not checked by our office. However, book values have been adjusted to agree with all physical inventories taken.
227
Prepaid Items-$408.73
This represents prepaid insurance premiums unexpired. From policies in evidence this figure is correct.
Appropriations for Construction-$30,678.26
No appropriations were made from tax levy during 1928.
Bonds Payable-$77,500.00
The above amount represents the total Bonds Payable as of December 31. 1928, $11,500.00 having been retired during the year with no new issues.
Notes Payable-$3,600.00
This represents notes outstanding as of December 31, 1928. An amount of $3,300.00 has been retired during year and no new issues contracted.
Accounts Payable-$32,732.82
Schedule II shows a detail of the various unpaid accounts. These date back to September 1928.
This above includes cost of electricity purchased for months of November and December 1928 amounting to $11,035.70.
1
Consumers' Deposits-$2,235.75
Individual customers records were checked and found to be in agreement with the control.
Interest was noted as being paid on these accounts December 31, 1928.
Interest Accrued on Bonds and Notes-$893.95
Schedule I shows detail of this accrued item found by us to be correct.
Other Accrued Items
Due Treasurer per Lighting Department Records $ 10,310.24
Due Treasurer per Treasurer's Records 9,590.17
Difference $ 720.07
This difference is due to deposit of January 2, 1929 being in- cluded as December business in Treasurer's record, and not used until January business in Electric Department.
This indebtedness has existed since 1925 and it is very apparent from this and also from non-current Accounts Payable that the working capital of this department is insufficient.
The Treasurer receives no interest on this loan from the Electric Department.
228
Loans Repayment-$277,800.00
This account has been increased by Bonds Paid during the year amounting to $11,500.00, and Notes Paid amounting to $3,300.00, or a total of $14,800.00.
Electric Operating Revenue-$228,858.62
Although a substantial reduction of rates went into effect on September 1, 1928, revenue from electrical operations has shown an increase of $7,072.60 or 3.2%.
Distribution or classification of many expense items was con- sidered improper. For Example: Commercial Expenses as shown in Exhibit E show a decrease and General Expenses show an increase. We believe proper classification will show normal increases in both departments.
Suggestion is made that 1929 classifications be more suitable by removing certain General Expenses to Commercial Expenses. Likewise other Departments are effected by improper classifications.
It is suggested that the account 674-Stores Expense-be used in 1929 and concurrently the "unit cost" of Material used for operating and construction be corrected-to be "cost-landed-in-stock."
Materials used for capital accounts to be increased by per- centage of total amount (dollars) only and credited to 674 Stores Expense account.
The net balance of 674 Stores Expense account will reflect the operating cost of Material and Supplies department.
Non-operating Income-$141.62
Jobbing appliance business shows a slight net profit this year as compared to a loss last year of $1,248.65.
General
From observation of commercial accounting methods and equip- ment now in use many detailed changes could be effected, we believe, to render department more efficient.
This department does not operate the so-called "perpetual" in- ventory system and it is suggested that all inventories be calculated and adjusted as of December 1st each year rather than December 31st. By so doing your accountant will have ample time to study inventory differences and make suitable adjustment thereof prior to the "closing period" of your general accounts, report of which must be completed in time for insertion in the printed Town Report.
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