The Times-Tribune from Scranton, Pennsylvania • 3

THE SCRANTON TIMES, WEDNESDAY, AUGUST II, 1982 3 Officials Passing Buck on Blame for Gas Rate Increases Bodack, speaking before a Senate hearing on utility reforms, called for action on bills that would eliminate energy costs from being automatically passed on to ratepayers, and require natural gas utilities to purchase their supplies at the lowest possible price. Without reforms to bring rate relief, gas customers "will have to choose between heating and eating," the gheny County Democrat said. In a letter to Chairman Shanaman, OPake, a Berks County Democrat, asked the commission to block the gas cost increases, warning that thousands would be without heat this winter because they could no longer pay their gas bills. filed in May for a $19 million general rate increase for natural gas customers. But last month the PUC decided to put the request on hold for up to seven months while the commission investigates the need for the increase.

Under this proposal, the average heating customer's annual bill, now between $770 and $951, would jump to between $866 and $1,122. which had its last gas rate increase six years ago, said the higher rates are needed to cover operating costs and to provide a fair return on investment. Meanwhile, PUC Chairman Susan Shanaman said the commission would consider reforms this month in the automatic clauses. Under discussion are pub lic hearings on the increases and changing tne effective dates to avoid energy cost hikes in the middle of the heating season. But her fellow commissioner Michael Johnson charged his colleagues Tuesday with "intentional foot-dragging on his motion last March to eliminate automatic adjustments for fuel costs.

"The beneficiaries of such derelict frocrastination are not hard to identify, is not the ratepayer. It is the said Johnson, a long-time foe of energy cost rates. Ms. Shanaman, in a letter to Pennsylvanias delegation to Congress, said tne commission cannot control the "staggering" increases in gas rates. She called for federal action to delay or halt the the annual bill of a residential heating customer.

has two rate increases pending before the PUC. One is a gas cost rate increase and the other is a general rate boost. The gas cost rate increase is to cover increased costs from suppliers, and the general rate increase is to cover the utilitys operating costs, according to Les Ward, vice president for marketing. The utility filed its request for a gas cost rate increase July 31, Ward said, and a reply is expected during the third week of August. Until word is received on the PUC's decision, Ward said, he will not comment on the effects the rate increase may have on customers bills.

deregulation of natural gas prices. In Pennsylvania, the gas cost rate has doubled with deregulation," she said in an interview Tuesday. The increases for residential customers abe averging about $200 a year, but it may be $6 million-plus for industries. That's got to have a drastic effect on jobs," she said. The commission has filed petitions to intervene in two gas pipeline rate cases that would give an estimated $365 million total increase to two suppliers serving Pennsylvanias natural gas companies.

But help for the consumer must come from Congress, she told legislators. Our hands are tied." State Sens. Leonard Bodack and Michael OPake called on the PUC Tuesday to stem the rising tide of utility costs Utility regulators and legislators already are blaming each other for stagering" increases expected this fall in ills of natural gas customers in Northeastern Pennsylvania and other parts of the state. Federal deregulation of natural gas prices means consumers will be hard nit. Pennsylvania's major natural gas companies, including Pennsylvania Gas and Water have filed for increases averaging 30 percent on the gas cost rate, which is collected from customers to reimburse utilities for rising fuel costs.

The hikes, which are separate from formal rate increases and approved by the Public Utility Commission without public hearings, could add up to $300 to i A 1 West Side Man Group Planning WDAU Purchase Voices Optimism Killed in Crash i Announcer Hurt A 27-year-old West Scranton man was killed early this morning when the car he was driving slammed into a dump truck on Lackawanna Avenue, and a local radio announcer was injured in a crash on Tuesday afternoon in Factoryville. Police identified the victim of the fatal mishap as Jerry Spiegel, 320 15th Ave. Witnesses told police Spiegels car was traveling at a high rate of speed when it struck tne dump truck, operated by Mello Pierontoni, 42, of 2 Houseman West Nanticoke. Police said the dump truck turned onto Lackawanna Avenue from Sixth Avenue immediately prior to the crash at 2 18. One witness, a taxi driver who was stopped at the Greyhound Bus Terminal, told police he saw the victim traveling west on Lackawanna Avenue at a high rate of speed.

The second witness, who was operating a car traveling behind the dump truck, said she saw Spiegels car traveling on the wrong side of the road at a high rate of speed. Pierontoni told police he was traveling at 10 miles an hour and he was unable to get out of the way of the oncoming vehicle. Police said there were no skid marks prior to impact The victim was pronounced dead in the emergency room of Community Medical Center at 3 19 a m. By JOSEPH X. FLANNERY Times Special Writer Legal counsel for the New York City businessmen who plan to purchase WDAU-TV expressed optimism today that the long-delayed deal will be consumated in the near future.

Attorney Howard Liberman, the Washington, lawyer who represents the proposed buyers, said that additional data will be filed within a week or so" with the Federal Communications Commission outlining how his clients plan to complete the $12 million purchase. Liberman said that once that document is filed completing the application to acquire control of Scranton Broadcasters which owns the TV station the FCC could approve the proposal shortly thereafter Then, Liberman concluded, the actual sale transaction would be closed 30 to 60 days later Liberman represents Robert L. Dudley, A Richard Benedek and Charles Woods, businessmen who have interests in television stations in other parts of the country They propose to acquire control of Scranton Broadcasters from the heirs of the late Frank Megargee, a broadcasting pioneer in this city. The proposed sale was announced last Sept. 17 and the application for FCC approval was filed three months later.

However, the deal then began to falter as the proposed buyers told the FCC that they could raise only $8 million not the $12 million that they had agreed to pay. This was followed by a series of postponements by the FCC of the transfer application, with both sides agreeing to hold the matter open to give the buyers more time to come up with a plan to complete the purchase. That brought the proposed sale closer and closer to collapse because the option to buy the station called for a completion of the deal by the end of this month If the deal is not on track by then, the proposed buyers would lose their $600,000 downpayment to the Megargee heirs. However, Liberman now says that the buyers have a plan for completing the sale. He declined to spell it out in detail pending its filing with the FCC.

There have been rumors (Continued on Page 8) at Lackawanna and Sixth Avenues. Police said the accident occurred shortly after 2 a.m. The victim's car later was towed to Santarsiero's North Scranton body shop. (Staff Photo by Refice) and failed to yield the right of way to Keiser, who was taken to the hospital in the Factoryville ambulance. Ms Creely escaped injury, police said.

Daniel Santarsiero, owner of Triumph Body Shop, inspects the crumpled wreckage of the car in which 27-year-old Jerry Spiegel, 320 15th was killed early this morning in a collision with a dump truck Blue Bird Diner, when his vehicle collided with a car operated by Marsha A Creely, 35, of 98 State St Nicholson. Police said the woman was driving out of a private drive Lackawanna County Coroner William Sweeny said a post mortem examination revealed that the victim died of severe hemmoraging due to multiple internal injuries. Meanwhile, Hoyt Keiser 33, of Tunkhannock RD 4, was released after being treated at Mercy Hospital Tuesday afternoon for injuries suffered in a two-car accident in Factoryville. State police at Tunkhannock said Keiser, an employee of Radio Station WGBI, was driving east on Route 6, near the Immediate Action Urged New York Firm Puts in its Bid for Finch Project Approval recapture the Section 8 subsidy granted the City of Scranton and assign it elsewhere," Alpert said. It is my feeling that such an action by HUD could take place as early as September 1982 if in fact sucn a decision for recapture has not already been made.

1 need not elaborate such a decision by HUD would spell disaster for the City of Scranton and the loss of a $3 million restoration of one of its finest structures. Cowley said the Alpert firm is not attempting to undermine the efforts of the local development group. "If they can do the project, fine," Cowley said. But to lose these units would be ridiculous." The Albert firm already has developed 1,000 units of Section 8 housing in New York City and has another 200 apartments under construction, Make the SRA board aware of the fact know that his firm already has approached the current developer in an attempt to purchase of its option but met with no success. Notify the board that the firm is prepared, with the citys cooperation, to take over, the project immediately should the option of the current developer expire or be canceled.

Albert, who said he has spent the past 10 summers at a vacation home just 30 minutes from downtown, said that he visited the city to inspect the Finch Building at the invitation of John Cowley of Cowley Real Estate Inc. It is my very real concern, based on extensive experience across the United States, that should the development of this project not move forward immediately, the Department of Housing and Urban Development may withdraw or prefered developer to convert the vacant landmark in the 400 block of Wyoming Avenue into housing units for the elderly. The S. Department ol Housing and Urban Development has approved 48 units of subsidized housing known as Section 8 for the project, but the local group is attempting to gain additional rent subsidies. The purpose of his letter, Seymour Alpert informed the SRA, is to: Make the agency aware of his companys extensive experience in development of Section 8 housing.

Advise the board that he personally is very much interested in the progress of Scranton. Inform the SRA that his firm has the financial capacity to undertake the development of the building immediately. according to its chief executive. The firm is the second out-of-state developer to take an active interest in the building in recent months. Housing Dynamics of Boston, recently informed the SRA that it also would like to be named developer of the structure.

An attempt by the city administration to convince the SRA board to drop the local developer, which has been working on the project for years, was unsuccessful. The board at that time said it had not been approached by Housing Dynamics, that there is no gaurantee that the units could be transfered to another developer and that the present developers are in the process of trying to obtain additional subsidies. By THOMAS K. STAFF Timei Staff Writer The historic Finch Building which sat vacant for so many years has yet another suitor who wants to turn it back into a functional and attractive structure. Albert Alpert Sons New York City, has informed tne board of the Scranton Redevelopment Authority, which owns the building in the 400 block of Wyoming Avenue, that it is interested in moving forward with a major renovation project there immediately.

Alpert also expressed a fear that if something is not done on the project soon, a $3 million restoration project may fall through. The basic drawback to the New York City firm taking over the project is that a group of local men nas been designated by the SRA as the 1 Therell Be A Payday For Recalled Firemen turn the local courts ruling, according to city solicitor Edmund Scacchitti, but decided to bring the firefighters back to work in the event that the appeal is rejected. The local court ruled that the city must pay the furloughed firefighters back wages from Jan. 1. If the firefighters were not brought back on the payroll and Commonwealth Court rejected the appeal, the city would have to pay for services it did not receive for an even longer period.

The retroactive pay for the seven months the firemen were out of work is expected You Would Flip Your Lid at This Undertaking By JOHN MURPHY, Times Correspondent It was a curous sight, to say the least. There, propped against the outside wall of the Grado Brew House at Keyser Avenue and West Market Street in North Scranton, stood a yellow steel casket, complete with a For Sale" sign. Caskets for sale, $10 or $20, the sign read. A cheap second home for some wayward vampire, perhaps? Or a return made by some dissatisfied customer? Not quite. What it is is a novelty item one of about 75 caskets Mike Grado, who owns tne building and whose wife, Olga, runs the bar, purchased at a bankruptcy sale at the Burnett Casket Co.

in Carbondale. Theres a market for everything," said Grado, who runs an occasional flea market in the parking lot outside the bar. "1 dont care what you got, theres a market for everything. Apparently, Credo's right. He purchased his first lot of caskets three or four months ago and sales were so brisk that he went back for a second Patch.

You'd be surprised at the people that buy them," he said. "They make beer coolers out of them, flower beds, telephone booths. Some people put them right their living rooms. Some use them for worm beds and some people make carts out of them." Of course, there's always the jokester, too. Like the guy who purchased one and had it delivered to a girt who works for him.

Crado's nephew made the delivery and. when the poor girl was told the coffin was for her. "she pretty near died," Grado said. Grado has coffins inside the bar. behind the building and stored at the Green Ridge Body and Fender Shop, which he operates with his brother.

Potential buyers can rest asst red that the caskets are empty, except tor the occasional regular who decides to use one of loose inside the bar to girt a little nse out of another patron. I knew people would buy them," Grado said, because I know people are crazy. For $10, they have a lot of fun." By THOMAS K. STAFF Time Staff Writer A payless payday for 14 firemen who returned to their jobs Aug. 1 after a seven-month layoff apparently will be averted when City Council meets an emergency session Friday at 9 a m.

Legislation authorizing payment of salaries for the 14 firefighters ordered reinstated by Lackawanna County Court was delivered to the city clerks office this morning Council president Vincent Manzo said the earliest that council can act on the ordinances creating the 14 positions and providing funds for paying the firemen will be rnday morning. Council is required to publicly announce its meetings 24 hours ui advance through a legal advertisement The ordinance creating the 14 private firemen positions also recreates a fire inspector's lob which was eliminated in the 1982 budget with the other positions for economic reasons. In an opinion authored by President Judge Edwin Kosik, Lackawanna County Court ruled several weeks to cost the city in excess of $250,000. Additionally, any costs incurred by the laid-ofT men for medical care will have to be reimbursed by the city. Friday will be the first payday for the furloughed men since they returned to the job, provided that the two ordinances are approved by council.

Manzo and Councilmen Michael Melnick, John Marti-nelli and William Gerrity said they would vote for passage of the laws. The fifth member of council, Jerry Donahue, could not be readied for comment. Gerrity said that although be thinks a municipality should have the right to furlough employees for economic reasons, the firemen should be paid since they have been working. The court ruling is based on a state law which specifically states that Class 2-A cities such as Scranton cannot lay off uniformed employees for economic reasons. State Rep.

Gaynor Cawley said he wants to meet with council and Mayor James McNulty to obtain their thoughts on drafting a state law which would give the city that authority. Rehinng the 14 firemen from Aug. 1 to Dec. 31 will cost the city $114,195 hi salaries, $5,600 for uniform allowances, for bospitalaatKB insurance, and for other insurance covcnt ago that the city did not have the authority to lay off Fire BQreau employees for any other reason than just cause. The ruling was handed down July 15 and the firefighters returned to their posts Aug.

1. The city already has asked Commonwealth Court to over Pete Peresta, a regular at Crado's Brew House, puts a shine on a casket being sold at the North Scranton tavern. Mike Grado, the building owner, has sold a number of such coffins for some off-the-wall uses. (Staff Photo by Refice) VINCENT MANZO.