The Washington times., 1920-09-03
RATES FIXED
At 8 II CTS.
Decision Will Increase Pepco's
Revenues 100000 Yearly.
Begins Sept. Is.

The Public Utilities Commission to-
day handed down a decision refusing
the Potomac Electric Power Com
pany rate OF 10 cents per kilowatt
hour, which II asked, and allowed 1t
Sh cents per kilowatt hour.
The commission also refused to
permit the company to insert a coal
clause in the contracts with whole
sale users of electricity, but did al
low 1t an inrease of one-half cent for
all electricity in excess Of 1,750 kilo-
watt hours. This increase, II is said,
is slightly below what the company
would have received had it been al
lowed to insert coal clause in
Wholesale contracts.
SPECIAL COOKING RATE.
In schedule II, which includes those
who use electricity for cooking pur-
poses. an increase OF a cent was
allowed.
The commission spproved the sppli-
cation of the company so far as II re-
lated to the abolition of discounts
heretofore given TO merchants. Here
after no discounts will be allowed.
The commission also allowed the
Y
for street lighting, whish means tife
District will have to pay about 5000
year more for street lighting.
These rates are to go into effect Sep.
tember Is.
The decision of the Utilities Com
mission increases the revenues OF the
company about 100000 a year, which
the commission thinks will be suffi-
cient to earn a fair return on it's
valuation.
The ruling OF the utilities COM
mission will be sent to the Supreme
Court of the District of Columbia
with the request that the injunction
granted the Potomac Electric Power
Company be modified so as to allow
the new rates to go into effect on Sep
It be carried to the Supreme Court of
the United States.
RATES START SEPT. Is.
This will mean that the users of
electricity in Washington will pay the
new rates commencing September Is,
and that the money held in escrow
will be settled by the Supreme Court.
The people of Washington have
been paying 10 cents per kilowatt
hour for electricity but . cents has
been impounded until the court could
settle the controversy between the
company and the commission. The
commission allowed the company 3
cents per kilowatt hour some time
ago and the company contested the
ruling, claiming II was entitled to a
1O-cent rate. Tho court granted the
injunction and the people have been
paying the 10-cent rate with the
prospect of getting back cents out
OF every 10 paid the company II the
court should rule in favor OF the COM
mission.
, officials OF the Potomac Electric
Power Company refused to comment
on the decision of the otilities Com
mission until they had time to read
carefully the decision.
COMMISSIONS DECISION.
On it's decision the comm ssion said
From the evidence before II in this
case the commission is convinced
| that the company is entitled to an in
! crease in revenue. due principally TO
the increase in the cost of coal. The
commission feels, however, that a coal
| clause, such as that suggested by the
| company in its first application is
Objectionable inasmuch as there is
| less incentive to secure coal at the
most advantageous price when II is
known that the cost, whatever 1t may
| be, is automatically passed on to the
consumer. As the increase in q
| cost of coal affects all consumers OF
the company although in varying dc.
grees, the commission believes that
such increase should be borne as near.
! ly as possible by each class in It:
proper proportion.
The evidence presented shows thai
the rate of return earned by the com
pany at the present charges undei
schedules II, c, ID and f are fairl!
high and should not now be changed
The charges under schedules A, E, c
and III and for street lighting arc low
in comparison and should he modified
SO as to bring the rates OF returr
hereunder more nearly in conformit,
to those OF the other schedules.
THE commission Is of the opinion
that tho following increases in sched
ules A. Il. @ and II. together will
the restoration of the rates for stree
lighting in force Immediately prioj
| (Continued on Page II, Column 81