Mr. CONTE. Counsel brings up a good point here. How about the ratepayers? Do they get a piece of the winnings, if any? Mr. GODWIN. I am not familiar with that, if they do. Mr. CONTE. I think, Mr. Godwin, that the point here, as I sit here and try to analyze what you are getting at, is whether or not there is a sufficient increased profit to the utility to make such deals? Mr. GODWIN. Well, that is sort of what we question, I mean, whether these practices are really economic, whether they stand on their own feet, and whether in these particular instances there is a return from this particular promotional project to the utility in its earnings. Mr. CONTE. And then, to the customer. Mr. GODWIN. It may pass down eventually to the ratepayer. Mr. GODWIN. That is one crux, right. Mr. CONTE. I appreciate your third line on the first page where you say, "I am an independent, unsubsidized"-and you sort of emphasize that-"businessman." For that I want to congratulate you. I certainly, in my 10 years in the Congress, have been against subsidies of every type and kind. How do you feel about the 272-percent oil-depletion allowance? [Laughter.] Mr. GODWIN. Well, I will tell you I would rather not express my opinion on that since that is not the matter we are discussing here today. Mr. CONTE. Well, we are talking about subsidies, and I oppose that one like all other subsidies. Thank you, Mr. Chairman. Mr. WILLIAMS. No questions, thank you. Mr. DINGELL. Mr. Godwin, the committee is grateful to you for your very helpful testimony. You will, I am sure, cooperate fully with Mr. Potvin with regard to the additional information requested by the committee. Mr. GODWIN. Thank you, sir; and I really want to express my feelings to you today for allowing me to testify here today. (Information submitted follows:) NATIONAL OIL JOBBERS COUNCIL, To: Mr. Gregg Potvin, Counsel, House Small Business Committee. Subject: Documentation of charts presented at hearings February 1, 1968. Enclosed is the documentation requested from our charts presented to the House Small Business Committee, Subcommittee #5, investigating the promotional practices of public utilities and their effect on small business. These were presented to the committee on Thursday, February 1, 1968. As explained earlier, the chart maker glued all documentation on the chart boards, so copies were made of most of these letters, ads, etc. Each of the 8 charts is explained below, with a description of the material on each of them. Incidentally, charts 1-6 were presented by Mr. Godwin, 7-8 by Mr. Horan. Also, a photograph of all the charts (numbered) is also attached. Chart 1: Documentation attached. Chart 2: The top document (up to $190 for Gold Medallion Home) by Public Service Indiana is not reproduced because it is a stock ad flyer and no different (essentially) than scores of others. A copy of the letter offering $500 to single family home owners converting to electric heat is attached. Chart 3: The brochure from the Elizabethtown Gas Company (N.J.) is not reproduced here. This offer was initially made in October, 1967, and basically "awards" a specified number of air miles for builders. For example (and I quote): "Basic Requirements-One Family Homes. Install natural gas for (a) Space heating; (b) Water heating; (c) Cooking. Flight Reward. 500 air miles per home." And so on. We are sure these brochures are still available from the Gas Company if you wanted one for your records. As for the Grand Bahamas, Color TV, etc. provided by the Northern Illinois Gas Company, a copy of this material is attached. Chart 4: The Free Plumbing and Wiring advertisement is by the Western Massachusetts Electric Company and appeared in the Daily Hampshire Gazeite, Northampton, Mass., September 13, 1965. The free gas water heaters were offered by the Central Northern Gas Company, in the local Pipestone, Minnesota newspaper on March 13, 1967. Chart 5: The 10,000 Eagle (trading) stamps were offered by the Laclede Gas Company in the St. Louis, Missouri, Globe-Democrat on Monday, August 17, 1964. Chart 6: The "Day at the Races" (which included luncheon at the Paddock Club, Cash Stake, Dinner and Evening Entertainment) was offered by the Cambridge Gas Company, New Bedford Gas and Edison Light Company, and the Worcester Gas Light Company, to any cooperative gas dealer who "sells and installs 3 gas house heating jobs in an existing home on our mains from April 11, through June 18, 1966." Chart 7: The data on this intra-association material was all taken from public records and refers to the Western Mass. Elec. Co.; Springfield (Mass.) Gas and Light Co.; the 1962 FPC report listing Massachusetts' utilities and their contributions in aid of construction, 1962, which totaled $3,563,278. Chart 8: A copy of a letter from a representative of the Massachusetts Electric Company, Worcester, Massachusetts, to the Leicester Housing Authority, Leicester, Massachusetts dated June 9, 1967 is attached. Of course, anyone is welcome to examine the original charts in our offices at any time. They are, of course, available to the Committee at any time as the Hearings progress. Attachments. CHART 1 BOSTON EDISON Co., Boston, Mass., October 1, 1965. Re DPU No. 14327-Y Mr. FRANCIS J. HICKEY, Jr., Secretary, Commonwealth of Massachusetts, Department of Public Utilities, State House, Boston, Mass. DEAR MR. HICKEY: Pursuant to the Department's Order No. 14327-Y, we have enclosed herewith for filing, two (2) copies of each of the following: 1. Boston Edison Company Installation Allowance Programs. 2. A description of the allowance arrangements that have been exceptions to our basic program. 3. Appliance Lease Agreement (electric water heater). We shall file revisions to the Programs as and when such occur. DALE E. WASHBURN, An allowance of $500.00 will be paid to any residential customer, living in a single-family house, who converts to electric heat as the sole heat source; and who will be served on Househeating Rate B. The allowance may be given as a 40-gallon electric quick-recovery water-heater and $425.00 by check. All such heating installations must be calculated, designed and approved by the Promotion Department who will establish insulation standards. All jobs will be inspected by a Company representative before payment will be made. Seasonal residence will not qualify. Payment is made to the owner/owners of the dwelling only. Apartment houses do not qualify under this plan. WILLIAM M. FREUDIGMAN, CHART 3 NORTHERN ILLINOIS GAS Co., GENTLEMEN: Enclosed are the names of heating contractors who won prizes in connection with Northern Illinois Gas Company's recent Travel-O-Rama contest. Even though you may not find your name among them, we hope you'll derive some measure of satisfaction from having participated in an activity responsible in part for the business you enjoyed last fall. The campaign was a fabulous success! Response to our Plaid Stamp offer far exceeded our expectations. But for all the thousands who converted, there remain many thousands more who have yet to make the change. We appreciate your past sales activities encouraging conversion to gas and welcome your continued support as we begin a new year. Very truly yours, A. D. JONES, Dealer Representative. NORTHERN DIVISION GRAND PRIZE WINNERS GRAND BAHAMAS VACATION Master Heating, 1028 South Walnut, Arlington Heights, Ill. WINNER OF RCA COLORED TV Ibbotson Heating, 108 East Prospect, Mount Prospect, Ill. RED CARPET WEEKEND HOLIDAYS Special Service Sheet Metal, 1402 Greenleaf Street, Evanston, Ill. CHART 7 "Until further notice the Company will pay a basic construction allowance of $300 and $10 for each 100 square feet over 1,449 square feet for each new Electrically Heated Home which meets the Company's specifications." (1962) In the Hampden County Registry of Deeds, there is a record (Book 3014, p. 1) of the Rivercrest Apt. Mortgaged to Springfield Gas & Light Company for $116.760.95. The apartment house is gas heated. (1964) In a report published by the Federal Power Commission for the year 1962, the following figures appear under the heading: It is our considered opinion that the term "Contributions in Aid of Construction" refers to subsidies given to facilitate and assure the use of electrical energy, of which heating would be the main one, in new construction. LEICESTER HOUSING AUTHORITY, Leicester, Mass. CHART 8 MASSACHUSETTS ELECTRIC CO., GENTLEMEN: We have reviewed the preliminary plans for your 40 unit project to be developed and operated separately from your existing facility. |