The Washington times., 1920-08-16
PEPCO MAKESLAST
APPEAL FOR FUNDS
U. S. Must Take Over Light
Company n Rates Are Not
Raised, Says Ham.
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ths meantime Washington must have
electricity.
William Mex. clayton asked Ham II
there was anything in the popular ru-
NOR that the company had acquired
rights at the Falls to rstsrd the de-
velopment Of that project ax means
OF furnishing electricity for Washing
ton. Ham said there was no truth In
Il. and that the company WAS only too
glad TO get water power to help out
in the situation. Commissioner Brown
low asked Ham II IL would not be q
good thing TO use the water power
and save coal. IL both cost the same.
Ham replied that IL was broad view
to take of the situation.
Ham said the present plant at
Bennings had reached its limit, and
that any further enlargement OF the
plant would be dangerous In its pres
ent condition. Ham said II would
cost more than Ss.000.oo0 in the next
ten years to develop the electric light
system OF the District
HAM HAS EXHIBITS.
Ham presented several exhibits to
, further his petition for an advance
In rates, which showed that the cost
OF everything that goes into the
makeup of electricity had increased.
Mr.. Ham explained that II the COM
pany's application for a restoration OF
the rate of 10 cents per kilowatt hour
is granted. the so-called general pub
lie. or householders, would not have
their bills Increased. These custom
ers are now paying 10 cents, but the
company gets only s cents. the other
2 cents going into a fund created by
the District Supreme Court In 1877. |
The effect of granting the company's
application would be merely to stop |
payments into this court fund.
The money in this fund, represent |
ing the difference between the and |
public II the Scent rate Is upheld by |
the court and given to the company
II the 10-cent rate is upheld.
Ham testified, however, that the !
granting Of the company's present ap-
plication would mean increases for |
groups of users other than private
homes.
HOW RATES WOULD GO UP.
From Schedule e, or large whole
sale consumers, the company would
set q total Of $244.61O more a year.
Mr.. Ham testified.
From Schedule G consumers, who
are now allowed discount which the
company seeks to abolish, $1l,46 ad-
dirional revenue would go to the COM
pany.
From the District and Federal gov
ernments for an increase in the rate
for street lighting $83,011 would ac-
crue to the company.
The company estimates that these
increases, together with q restoration
OF the 10-cent rate to private house
holders, would yield in the neishbor-
hood of 8 per cent on the fair value
OF Its property.
Clayton asked the commission to
the paragraph in which an per rent
rate of return on fair value Is asked
for. b.. ....rr .-...
CLAYTON DENIES LEGALITY.
Clayton said there Is nothing in the
public utilities act which gives the
com ssion authority to fix a definite
rate of return upon the value of the
property Of the company.
The rates which the commission al
lows the company to charge for
current may result in the company
value, that rate Of return is incidental
to the fixing of schedules to be
charged by the company, Clayton
argued.
Colonel Kutz said he saw no useful
purpose that would be served by
striking out the paragraph referring
to the rate Of return, but added that
the commission would give careful
consideration to C1ayton's contention.
Clayton announced to the commits
sion that he also will contend at this
hearing that the commission has the
right to fix the rates to be charged
the Federal Government for current
and he requested that the company
bring into the hearing the contract
which it has with the Government to
see IL the rates allowed Uncle Sam
"are on all fours with the rates hxed
for, private consumers"