Senate.12 As a consequence, the definition of a gas utility company in the bill passed by the Senate was virtually the same as that in the original Senate bill (S. 1725). The Senate bill was then referred to the House. 43 On June 24, 1935, the House committee issued its report on S. 2796. It amended the definition of gas utility company so as to restrict it to a company "which owns or operates facilities used for the distribution at retail * * * of natural or manufactured gas for heat, light, or power." In explanation, the report merely contains the statement that the term "includes only those companies which distribute natural or manufactured gas at retail or own facilities for such retail distribution."" This provision of the bill, as reported by the House committee, was adopted by the House without change." The bill then went to coneference. 44 45 At the conference committee, the House version was accepted unchanged and the bill, as finally adopted, contained the House version of the definition. The statement of the managers on the part of the House accompanying the conference report" makes no reference to this problem and, of course, the managers on the part of the Senate submitted no report. VII. TABULATION OF HEAT RATES OF STEAM-ELECTRIC GENERATING STATIONS WHICH OPERATED UNDER 10,000 B. T. U. PER KILOWATT-HOUR OF NET GENERATION IN 1955 We have examined data for the year 1955 showing the heat rates of steamelectric generating stations, which operated under 10,000 B. t. u. per kilowatthour of net generation, as reported by the various public utility companies on form I reports filed with the Federal Power Commission. The term "heat rate" means the average number of B. t. u. (British thermal units) required by the station to produce one kilowatt-hour of net generation, while net generation means gross generation less plant use. A tabulation of such data is annexed hereto. The heat rates shown in the attached tabulation represent the average heat rate for all generating units in the particular station and not for any single unit. The stations listed in the tabulation are intended to include all stations of privately owned companies which operated at a heat rate of under 10,000 B. t. u. in 1955. It is generally considered, in the light of the present state of the art, that stations which operate at heat rates under 10,000 B. t. u. are the most efficient stations now in operation. The lower the heat rate the greater is the efficiency of the generating unit or station. In this connection, it may be noted that the tabulation shows there are 12 stations which operated at heat rates under 9,500 B. t. u. in 1955, among which are 6 stations in the American Gas & Electric Co. system." 1 station in the General Public Utilities Corp. system, and 1 station in the Wisconsin Electric Power Co. system. The first two named systems are subject to the Public Utility Holding Company Act, while the third was subject to the act until June 3, 1955, when it obtained an exemption from the act. There were also 4 of the 12 stations, operated by independent companies, which operated under 9,500 B. t. u. In respect of improvement in the art, it is our understanding that several generating units of from 300,000 to 350,000 kw. of capability are now on order, some of which will operate at 5,000 pounds per square inch steam pressure and are expected to result in heat rates of 8,400 or 8,500 B. t. u. These units are expected to be installed in the systems of the Philadelphia Electric Co. and the Detroit Edison Co. The Ohio Power Co., a subsidiary of American Gas & Electric Co., is installing a new unit described in the holding company's annual report for 1955 as “revolu 42 79 Congressional Record, 9065. 43 House Rept. No. 1318 (74th Cong., 1st sess.). 44 Id., p. 9. 45 79 Congressional Record, 10640. 40 House Rept. No. 1903 (74th Cong., 1st sess.). 47 One of these six stations is owned and operated by Ohio Valley Electric Corp., while the other is owned and operated by the latter's subsidiary, Indiana-eKntucky Electric Corp. The largest single holder of the common stock_ of Ohio Valley Eelectric Corp. is American Gas & Electric Co., a 37.8 percent holder. Two other registered holding_companies, Ohio Edison Co. and the West Penn Electric Co., own 16.5 percent and 12.5 percent, respectively. The balance of the stock, or 33.2 percent, is owned by 7 public utility companies, which are not subject to the Public Utility Holding Company Act of 1935; 2 of them are also exempt holding companies. tionary" in its Philo station in Ohio, which is scheduled for operation in July 1956. The following statement is included in the 1955 annual report of American Gas & Electric Co.: "This 125,000 kw. machine will be the first generating unit in the world to break through the 'critical pressure barrier' of steam (3,260 pounds per square inch)—the pressure at which water passes from a liquid to a vapor state without bubbling upon being heated to a temperature of 706 degrees F.-and will utilize steam at 4,500 pounds pressure and 1,150 degrees F. temperature. This will result in lower capital and operating costs." The president of American Gas & Electric Co. has recently announced that orders have been placed for the construction of 2,450,000 kw. generating units, 1 each to be placed in 2 new stations, the locations of which are not yet determined. The Cleveland Electric Illuminating Co., an independent operating company, is reported to have placed an order for one 250,000 kw. unit to operate at 3,500 pounds per square inch. Alabama Power Co., a subsidiary of The Southern Co., a registered holding company, is expected to announce shortly the placement of an order for one 300,000 kw. unit. The foregoing indicates the trend towards the installation of larger and more efficient generating units being participated in by both the holding company and independent systems. Tabulation of privately owned registered holding company and independent company systems showing steam-electric generating stations which operated at heat rates under 10,000 B. T. U. per kilowatt-hour of net generation in 1955 arranged in rank from lowest to highest Source: Form 1 Annual reports for year 1955 filed with the Federal Power Commission. 11 megawatt equals 1,000 kilowatts. The capacity shown is based on nameplate rating. The common stock of Ohio Valley Electric Corp. is owned in the following proportions: Percent 37.8 Represents capability rather than nameplate rating of installed capacity. The common stock of Electric Energy, Inc., is owned in the following proportions: Percent American Gas & Electric Co. (a registered holding company). 16.5 12.5 Union Electric Co. (a registered holding company and a public utility com- 40 The Cincinnati Gas & Electric Co. (an exempt holding company and a public utility company). 9.0 Illinois Power Co. (an exempt holding company and a public utility company) Louisville Gas & Electric Co. (an exempt holding company and a public 7.0 Central Illinois Public Service Co. (a public utility company). 20 4.9 4.3 Kentucky Utilities Co. (an exempt holding company and a public utility 4.0 Kentucky Utilities Co. (an exempt holding company and a public utility company) 2.5 Southern Indiana Gas & Electric Co. (a public utility company). 1.5 79039-56-27 EXHIBIT A Orders granting exemption pursuant to scc. 3 (a) (3) 1 Exemption granted subject to certain annual reporting requirements. 2 Exemption expired on Dec. 31, 1939, subject to renewal upon request of applicant. Exemption granted subject to the condition that the divestment by Sinclair of certain securities be carried out in accordance with the provisions of rule U-44 (c). |