Users may take control of Pittsburgh steam utility

Users of the inefficient Allegheny County Steam Heating Co. (ACSH) may take over ownership to assure its survival as a source of low-cost steam for downtown Pittsburgh. The 300 winter and 100 summer users have reached agreement with the parent firm, Duquesne Light Co., provided Duquensne can receive a tax deduction in return for the heating company's assets. Some small users are leaving the system in favor of natural gas, but the large users cannot afford individual systems and anticipate that a user-owner firm will result in lower rates. Some adjustment by the state legislation will be necessary to set up a non-profit organization. If Duquesne cannot deduct the donation, the users will attempt to purchase the two plants, each containing two oil-fired boilers, at a fair market price. A plan to convert the boilers to burn natural gas is seen as only a short-term cure which will require further substitutions of coal or waste materials in the future. (DCK)