Effects of War Conditions on Cost and Quality of Electric Service

This paper comprises a consideration of the effects of war conditions as they apply to the electric light and power service of the country, but the principles enunciated relate in their broad application to all kinds of public utility service. The electric companies are facing a grave situation owing to the Government's needs and requirements, to the abnormal prices of labor, supplies and equipment, to the difficulty of retaining their trained employees, and to the present impossibility of satisfactorily financing extensions. Owing to these conditions the electric companies may be forced to regularly operate their systems, during the continuance of such conditions, with reduced reserve in capacity of equipment and with partially trained operating forces, with accompanying reduction in efficiency of operation and reliability of service as compared with normal conditions. It is shown that the increased cost for fuel and other supplies, labor and taxes alone, occasioned by the war conditions, would amount to an increase of more than $116,000,000 over the operating expenses that should have been expected for the electric light and power companies of the country under normal conditions for 1917. The important advantages which are inherent in the central electric power stations for supplying power for war manufactures and the advisability for the government to make every reasonable endeavor to encourage the development of the central electric stations is pointed out.