Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-06
TEN-CENT ELECTRIC
POWER RATE ASKED
Pepco Wants Present Price
to Be Exclusive Of ere
serve Fund.-"

Formal request for restoration of
the rate of 10 cents per kilowatt hour
for current furnished householders is
made by the Potomac Electric Power
Company in an amended petition
filed with the Public Utilities Com
mission. The commission has set Au-
gust 16 as the date for a hearing of
the companys plea.
Although the commission in Au-
gust, 1917, reduced the rate to
cents, the company obtained an in
junction from the District Supreme
Court under which the people have
continued to pay 10 cents with the
proviso that the company shall set
aside cents of every 10 cents, to be
returned to consumers if the scent
rate is finally upheld by the courts.
If the company's latest request is
granted the effect would be to re-
lieve the company of putting ASIDE
2 cents for every 10 cents collected
as ordered by the court. The COM
pany has expressed willingness to
ask the courts permission to allow
the comm ission to restore the ~
cent rate, if such permission is found
necessary.
SI,5OO,OOO Accumulated.
Approximately s1,5oO,OoO has ac-
cumulated as a result OF the court
order requiring the company TO set
aside the difference between the 8
and the 10 cent rates. Even II the
commission should restore the 10
cent rate now this fund would re-
main under jurisdiction of the courts
until they finally determine whether
the commission was justified in re-
ducing the rate in 1917.
There are two suits pending in the
courts. one questioning the reasona-
bleness of the eight-cent order ana
the other contesting the valuation
placed on the company's property by
the commission. 1t was on this val
uation that the commission based the
reduction in the rate.
In it's amended petition the com
pany renews it's request for the addt-
ton of a surcharge to the blils OF
schedule Z, or wholesale consumers,
to meet higher coal prices.
Request also is made for the dis
continuance of certain discounts al
lowed business firms which are 1ur-
nished current under schedule q.
Another interesting feature of the
company's amended petition Is the
claim that under present conditions
it should be allowed a return of
per cent on the fair value of its
property, instead of per cent
Regarded reduction rs Unjust.
The company declares that even in
1917 it regarded the reduction in
rates as unjust and unreasonable. AS
a result of increases in cost of labor
and materials since that time the
claim is made that the present rates
are now unreasonable, even If based
on the commissions valuation, which
the company does not believe is the
true value.
In the latter part of 1919, the COM
pany says, there were large increases
in costs of operation not reflected in
the business of the entire year and
that the year 1920 has thus far
shown further increases in these
costs.
The company states that it has been
able to contract for only 80 per cent
of it's coal, supply and will have to
purchase the balance in open market
at advanced prices.
The effect of the above Will be.
the petition states, to reduce the
companys earnings to a return OF
but 1929 per cent upon the commits
sion's estimate of /. the fair value of
the property.
1t is stated further down in the pc
tition that even restoration of the
rates in effect prior to August, 1917.
would net the company return or
only GA per cent on the commission's
estimate of fair value under exist
ing conditions.