Evening star., 1923-03-25
NEW ELECTRIC RATE
CUT APRIL lis SEEN
Public Utilities Commission
Expected to Order 7 1-2-
Cent Charge.
WILL SWELL NEST EGG
Householders Will Continue to Paw
10 Cents Pending Ruling by
Supreme Court.
SWELL NEST EGG

! An order reducing electric Light
rates in the District after April 1
Is expected to be issued by the Public
| Utilities Commission this week, ac-
: cording to reliable reports.
! The present rate for household cur
rent is 1867 cents per kilowatt hour.
The belief prevails at the District
building that the forthcoming de-
cision probably will make this IA
cents, which would be a cut of ..
fraction of cent
| Householders, however, will con-
tinue to pay the company the old rate
! of 10 cents per kilowatt in accor-
dance with the terms of the injunc-
tion issued BY the District Supreme
/ Court in 1917
| Set Difference Aside.
The difference between the 10 cents
paid and the sum which the com
| mission decides the company may
keep after April / will be set aside
TO await the outcome of the litiga-
tion now pending in the United
states Supreme Court.
| The only immediate effect there
fore. of rate reduction at this time
will be to swell to larger figures the
nest egg that already has been ac-
| cumulated since 1917.
| At this time there is more than
100000 being held by the company.
which will go either to the consumers
| or the corporation, according to
which side wins the court battle.
| Whatever reductions are decided
upon by the commission must be ap-
proved By the District Supreme Court.
| as all other reductions have been
handled since the issuance of the in
junction.
Crisis About Reached
The crisis is about TO be reached In
the long legal fight between the com
pany and the commission. The hghest
! est court in the land is now consid-
ering the question of whether il has
! jurisdiction to go into the merits ~
! the valuation placed on the poWe,
plant by the commission, which val
uation the company is contesting.
If the supreme tribunal should cor
clude that IL is without jurisdiction
such action probably would mean Il
! final victory for the company. sirCe
| the District Court OF Appeals held that
| the commissions valuation was er-
roneous.
The commission in 1917 reduced
rates from 10 to cents per kilowatt
! hour on the basis of this valuation.
and If the valuation is nullified by
the courts the 10-cent rate probably
would be restored.
Has Further Effect.
The decision in the Potomac Elec-
| trio Power Company case has even
a more far-reaching effect however,
for. the valuations of the two street
railway companies also have been
contested by the companies and they
/ hinge upon the same principles on
which the electric light case was
tried.
The claim Of all three companies
is that the valuations fixed by the
commission are too low. And since
rates are based upon the value OF the
property higher valuations mean
higher rates
II the commission wins the com
pany will have to distribute the I'M
/ pounded fund TO the consumers with
| 8 per cent interest. Each consumer
| Will receive the difference between
the COMMISSIONS rate and the To-
cent rate on all current they have
used since the injunction was issued
The company has nearly all of the
| impounded fund invested in govern
ment bonds.