Railway power contracts

RAILWAY POWER CONTRACTS should be based upon rate schedules and general provisions that harmonize the respective interests of the power supplier and user. Elimination of demand charges and the substitution of a straight energy charge supplemented with a minimum bill provision appears to offer the best prospect of reaching this goal. By this means railway managements would be freed from unnecessary restrictions to good operation, and at the same time utility companies would be assured of earning a return on the capital invested in railway power facilities commensurate with the risks involved and with the return from capital devoted to other industrial power services.