Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-09
TEN CENT ELECTRIC
RATE TOCONT|NuE.
PENDING APPEAL
Company Directed to I'M
pound IS Per Cent Despite
Citizens Plea.

Electric light consumers viii, COZ.
tinue to pay 10 cents per kilowet..
hour for home service. and the Poto-
mac Electric Power Company will he
permitted to use sIe cents of this
amount and be required to impound
the remaining X DENTS pending the
decision of the courts on the appeal
of the company from the valuation
placed on its property b.. the Public
Utilities Commission.
This is the decision reas ed today
by Justice Gould of the Ea.trict Su-
preme Court after a hearing of couu-
sci for the company and for the COM
mission.
w. Mckendree Clayton. represent.
ing the Federation of Citizens Asso-
cations. appearing as friend of the
court. asked to have the impounding
cease, claiming that the fund is nav
about s1,500.000 and would be more
IMAM enough to meet the differences
Que the company should it's valuation
be finally adopted in the courfx Mr.
clayton pointed out that a larkN num-
Der OF consumers would nevee make
demands for reimbursement, due to
the shifting of the populatias: and
that large amount Of the impound-
ed fund would be retained by the cor
poration.
UnJust to Company.
In refusing to adopt the suggestipn,
Justice Gould said that it would be an
injustice to the company. and seated
tEat while the impounding miHHt be
embarrassing to some individuAis, 1t
was in the interest OF the public "a Q
whole. That some claims for reisn-
bursement might never be made the
- fok IL sA t.
pounded fund.
while dislike as much as any il-
dividual. said Justice Gould, TO pay
10 cents for electric light. and While
hate to see SO much money Me-. 1t
would be an injustice to the company
to compel it to accept the lowdP rate
when an appellate court might re-
verse my finding that the val0ation
placed by the Public Utilities Com
mission on the property Of the cen-
pany was justified"
Attorney S. r. Bowen. for the COM
pany. explained the application to the
court and stated that the commission
has allowed an increase e& only
$500. .000. when the company had ask
ed for $1,000 to meet increaaGd cost
Of operation. He pointed ont that the
company would not receive the benefit
ton order Of 1917 was amended No
permit the impounding Of only IN
cents instead OF the 2 cents required
by that order.
Insists en- Amendment.
Corporation Counsel Stephens. who.
with former Corporation Counsel
Syme. represented the commission.
told the court that there. 10 no die-
pute 1etween the company and the
commission that an increase II nee4.
ed BY the corporation to meet Sd
vanced cost of operation, but he f&-
sisted that the Injunction order of
1917 should be amended SO as to per-
NIT the commission to reduce the
price of electricity il circumstances
require, as well as to advance the
price. as asked in the company's ap-
plication to amend the Injunction.
He suggested that the injunction
might be dissolved to prevent further
impounding and thereby increasing
fund now beyond the $l.5eAoee
per cent of this impounded fund h9a
been paid in by householders,. WIN
should not be required to continue 10
pay 10 cents when the commission
had reached the conclusion that ~
cents per kilowatt hour would bring
the company fair return on the VAL
uation of its property.
Attorney Bowen told the court that
the impounded fund which has been
accommodating since 1917 is invested
by the company in government 6on48
to await the final disposition OF lltt-
CATION This fund may not be
touched by the company. it was stat.
ed, but it will be allowed to take tte
half-cent increase out OF future paye
ments only.