The Washington times., 1921-07-30
Utilities Decision
Ordering Cut In
d. C.. Electric Rates

Inc eloCtIlC rate decision IOloWS.
By the commission-When the
commission issued its order Mum
Der AIS, on March rs, 1921, authoriz.
ing a continuation of the then exist
ing rates of the Potomac Electric
Power Company for a five months
period from April /, 1921, it in.
cluded in the order a provision that
the rates would be restored auto
matioally to those in effect imme-
diateiy prior to September 3. 1920.
unless on or before september J..
1921. the commission shall have
ordered otherwise. For the purpose
of considering the question of the
rates to be effective oil and after
hearings were held on July IS and
IS, 1921, after due notice. Two days
prior to the date of the first Of these
two heavings, the Potomac Electric
rover Company filed It's petition with
this commission praying for q con.
tinuance OF the existing rates and
submitting q statement showing the
results Of the company's operations
for the year ended May IL, luai.
Income Would Be SIS Per Cont.
During that year two different sched-
ules of rates were in effect; the lower
from June !. 1920. to September Is.
1920--three and one-half months; the
higher rates from the last-named date
to the end of the period. The evidence
presented by the company at the hear
ings shows that during this period the
net income of the company available
for return was $1.311,4s3.ss, giving a
rate Of return Of 7.54 per cent on a fair
value Of $17,2s4.235.O6 as of May 81.
1921, this latter amount being based
upon the commissions finding of fair
value Of the company's property. The
testimony shows that had the higher
rates prevailing since September 10,
1920, been in effect for the full twelve
month period ended May 81. 1921, the
net income would have been $1.%17,-
1857. or q rate Of return Of SIC per
cent on the above fair value. II the
amount of depreciation accrued on the
company's property since the date Of
its valuation by the commission, that
is. from December 81. 1915. to May 81.
1891. wero deducted from the fair value
as stated above, the rate of return Of
SIS would be increased to SIT per cent
That the earnings Of the company
will not be less than SIS per cent
for the ensuing year. should tho
present rates be continued, is evil
dent from tho fact that although
there IL no appreciable reduction In
operating expenses to be anticipated
the monthly reports to tho Commits
sion show constantly increasing
volume OF business. Judging by
past rate Of earnings, the net in
como will continue to increase due
to the normal increase in business.
After q careful consideration Of the
evidence in this case. including the
rate of return which the present rates
of service produce. the commission IL
of the opinion that the rates should
be reduced 20 as to provide q return
Of approximately per cent.
Allows 5 Per Cent Discount.
The testimony shows that at the
present rates the various schedules
are fairly well balanced, except sched.
uls H and street lighting, which are
both relatively low. Rather than at
tempt at this time to readJust these
turbing this balanced condition, the
commission believes that this reduc-
ton can best be made by allowing a
discount Of per cent from the rates
fixed by II in its order No. 388, ex-
cept that such discount should not
apply to bills for current furnished
under schedule H Cheating and cook
ing schedule). to minimum bills under
schedule A. nor to bills for street and
pnih
The same plea IL mrde in this case
that has been made before to this
Commission and urged as well upon
committees of Congress. that the Com
mission should authorize the restora-
ton of the rates for electric light and
power to those in effect prior to It's
order 223 of July 10, 1917. when 1t re.
duced the maximum rate to be charged
by the Potomac Electric Power Com
pany from 10 cents to 8 cents per kilo-
watt hour. Thi, is urged on behalf
of the Washington Railway and Elec-
trio Company, as a means of making
up the deficits in the railway opera
tons Of that company. The Wash
tngton Railway and Electric Company
owns or controls and operates several
street railway companies. and is like
wise the owner of all OF the stock OF
the Potomac Electric Power Company,
but is prohibited by express act of
Congress from owning or acquiring
the property of the Potomac Electric
Power Company.
The Washington Railway and
Electric Company and the Potomac