46 N. H. Agricultural Experiment Station [Bulletin 266 



ing to whether the use is seasonal or annual. Many companies have 

 already applied special ratings for summer residents, clubs and camps. 



Classes 1, 2, 3 and 4 make up the usual customers of iniral lines and 

 are, therefore, of immediate concern in considering rates. It would 

 appear that there is little question of the necessity for separate con- 

 sideration of Class 4, village service, and such arrangements are being 

 made by many companies. Likewise Class 3, stores and commercial 

 enterprises, are usually treated in a different manner. That these are 

 of considerable importance will be seen by an inspection of Table 9. 



While the differing qualities of the last four divisions are fairly evi- 

 dent and are usually subject to special schedules, the dividing line 

 between Classes 1 and 2, farmers and rural residents, is much more dif- 

 ficult to make. Several companies in this territory have attempted to 

 apply the definition of a farm, as set forth by the Census and U. S. 

 Department of Agriculture in their effort to separate one group from 

 the other. No very great difficulty is experienced in doing this as far 

 as large and medium-sized farms is concerned, but to distinguish be- 

 tween small farms and rural residents is many times impossible. 



Anyone living in or on the edge of rural territory is quite apt to 

 keep varying amounts of stock such as chickens, a cow or a horse, a pig 

 or two, etc., and for this reason lays claim to the right to be served on 

 the rural rate. These same families may derive a considerable income 

 from employment in the nearby town, either steadily or intermittently, 

 or they may carry on some small-scale farm operations at the same time 

 as a side line. 



It would appear that to separate these two groups by an analysis 

 of occupation is difficult and unsatisfactory. On the other hand, many 

 companies feel that such a separation should be made and correspond- 

 ing rate schedules applied on the basis that special rural lines are 

 built, primarily for farm use, and that quantity consumption warrants 

 lower unit cost. While in the past rural consumption has been low 

 in quantity per month, it appears probable that in the future it may 

 raise itself considerably. Of importance in this is the inducement of a 

 lower rate with increased use which a farm of any proportions can 

 reasonably attain, but which might be unusual for a customer in the 

 rural resident class to develop. 



In order to avoid the necessity of making a division between these 

 two classes, it is suggested that they be thrown together in one rate, 

 starting with the rural resident as the base unit and separating the 

 rate structure so that only the actual putting of electricity to work in 

 farm operations of appreciable size will bring the consumer into that 

 position of securing the low block charges. In other words, the dis- 

 tinguishing element would be that, having exceeded a certain minimum 

 (which would be the rural resident's approximate maximum), the cus- 

 tomer automatically establishes himself as an operating farmer and is 

 eligible to lower priced farm rates. This method would throw small 

 farms (apparently non-operating) and rural residents together in the 

 first brackets of the rate, from which they may emerge into the next 

 lower cost brackets by developing their farm operations to such a point 

 as will place them, without doubt, as active operating farms. 



