Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-09-03
HALF CENT RAISE
|NELECTR|CL LIGHTS
FOR HOME GRANTED
Utilities Commission Fixes
Rate of 8 1-2 Cents Per
KiIoWatt Hour.
INCREASES ALSO VOTED
FOR WHOLESALE USERS
Court First Must Approve Changes,
But Board Will Urge Company
to Drop Injunction.

W ~AvP 49, 0AASsAVA. -it-
An increase from to sls cents per
kilowatt hour in the rate charged by
the Potomac Electric Power Company
for current to private homes will be
recommended to the District Supreme
Court by the Public Utilities Commits
sion, 1t was announced today.
The company had asked the com.
mission to restore the 1o-cent rate.
which was in effect in 1917.
The changes in rates which the COM
mission has decided to present to the
court for approval follow:
Schedule A (private homes)-For
the nrst sixty kilowatt hours, 81. in
stead Of cents per kilowatt hour; in
excess Of sixty hours. u cents per
hour, instead of S cents. =.
COal Clause Rejected.
Schedule E Qarge wholesalers)-
Commission rejected the company's
request for a coal clause under which
this rate would increase as the price
of coal advanced, but decided TO
recommend an increase that will give
the company slightly less in revenue
than the coal clause would have
amounted to.
The commission recommends an in
crease from 2 to 2k cents per kilo-
watt hour in the energy charge for
current in excess of I750 and less
than 1900 kilowatt hours; from to
1k cents per hour for the next $4,000
kilowatt hours; Ia cents per hour for
the next 10000; in excess of 1SS,75e
kilowatt hours. 1.3 cents per hour.
Schedule G tcurrent for Industrial
motors).-The commission agrees with
the company that discounts now al
lowed these customers be discon-
tinued without changing the rate.
Schedule H (current for cooking
and heating).-The commission rec
| cents per kilowatt hour in excess OF
the first ten hours.
Street Lighting.-The commission
recommends restoration Of the rate
in effect in July. 1917. which amounts
| to 10 per cent more than the present
rates. or about $4,000 more q year
to the company.
The company has several ether
schedules in which it did not seek
fnc1eassss and which the commission
left unchanged. ssIsl
| Csnet s1eaat sAoorsve. ~.
None OF the itrfSAa6s decided on by
the commission can be put into effect
| until they have been approved by
Justice Ashley II. Gould of the District
In 1917 the commission ordered the
rate to private homes reduced from
10 to cents per kilowatt hour, but
the company obtained an Injunction
from the court. UNDER which tho peo-
pie have continued to pay 10 cents. 0
cents going to the company and 2 cents
into fund to be returned to the come
pany or the public whGd the case. Is
finally decided. .'sst
When Justice Gould returns to the
bench next week the recommendation
Of the commission will come UP for
hearing. The injunction obtained by
the company in 1917 must be further
modified or wiped out before the rates
can be changed. -
/. It is expected that the commission
will contend that the injunction
should be wiped out. II the injunction
Is abolished the commi ssion's new
rate Of Sk cents would go into effect
and the payment Of 10 cents would
II the court merely modines the in
junction SO as to change the rate from
to Sk cents the people would con-
tinue to pay 10 cents, and the other
1h cents would go into the fund
which is being held pending q dnai
decision by the higher courts on the
valuation placed on the company's
property by the commission.
Qaestion at Issae.
/ The question to be fought out before
Justice Gould. therefore, is whether
the people should continue to pay lh
cents per kilowatt hour into the fund
established by the court in 1917. or
whether payments into that fund should
stop.
II the injunction is abolished by
Judge Gould stopping payments into
the court fund it is probable that the
that fund will remain undisturbed suns
til the higher courts have passed on
the valuation case.
VIII Add 100000 q Year.
The commission states that if The
court approves the increases recon-
mended the revenues of the company
will be increased by 100000 a year.
This amount, the commission states.
will enable the company to earn a re-
turn of not less than per cent on
the fair value Of its property as fixeG
by the commission.
The commission recommends to tho
court that the proposed increases taxi
effect September Is and remain DC
force until March 81, 1921 when the
restored. unless otherwise ordered l..
the meantime.
Items Of Increased Cost.
Discussing the evidence presented
by the company at the recent hearing
the commission says in its order:
"At this hearing the company pre-
sented, through several witnesses, a
full analysis OF its business for the
calendar year 1919 as affecting all
classes of it's consumers. and the ef-
feet that increased prices for 1920 will
have upon the rate of return there
from. The principal item of increased
cost is that of coal. From the evil
dence it appears that the cost OF coal
has increased from $3.61k per ton in
1917 to $7.2763 per ton in 1920. to
which must be added the increase of
40 per cent in freight rates recently
authorized by the Interstate Com
merce Commission, effective about
1920. In addition to this
the. company shows that IL will be
reouired to purchase portion of its
coal supply for the coming winter in
the open market at prices approx
mately $3.50 per tom In excess of the
contract price. due to the inability of
the contractor to supply sufiieient
maximum demand. Increases In
wages, effective in May. 1920. as well.
as advanced prices of materials over
the 1919 cost, must also be met In
1920.
From the evidence before 1t in this
case the commission is convinced that
the company is entitled to an Increase
in revenue. due principally to the in
crease in the cost of coal. The com-
feels, however, that coal.
clause. such as that suggested by the
company in its first application. is OBJ
inagmuch as there is less
incentive to secure coal At the mos
d Continued ON Page .. Column % s