The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-12-29
The Compromise in the Potomac
Electric Light Cases
BY BILL PRICE.

involving both valuation of the companys properties and the
has been charging electric light in the District
have Of the long legal battle with distinct
advantages that will be appreciated.
The lighting company may be assumed didn't surrender
any than had 1t energies from the fray mighty
well off in the fat in cash it will get from the longim
pounded trust fund.- and which it will distribute among
stockholders of the Washington Railway and Electric Com
pany its although should spend the greater part Of
the money improving service to the public and
in building up its properties.
The lighting company, it will attempt to do in the
future is in position improve its relations with the
public and possibly escape legislation in Congress designed to
still further reduce electric light rates.
The company did not wn in this agreement anything like
the extravagant claims put forward in the courts to
valuations but has scored decided victory in the allowance
of future return upon its fixed valuation Of 7 per cent
which, although line with allowed in various parts
Of the country is higher than the company should have
sideng its splendid financial condition Many Of the high
returns permitted elsewhere electric lighting companies
which suffered serious financial during the and
since and being allowed to recuperate The M cent
return establishes most gratifying precedent for local
utilities although that is not binding Of course upon
future Utilities Commissions Of the District
The fact that the electric light of Washington will
after February pay only 7 cents per owatt hour for
electricity instead of 10 cents is going to be considerable
saving each month every household In the course of
comparatively few years it will aggregate millions of dollars
to the people Of this city.
in the courts is that Washington people going share
In that impounded fund Of $6OO0OO They will get
something like 100000 Of it, dividing the spos with street
railway stockholders.
This newspaper began its fight in behalf of the public of
Washington years ago reoces through its efforts
there to be melon splitting which the public for once
will share Probably is the only instance record where
PLAZA people have shared in such joyful affair
The good part of is that electric light will be paid
their money without the necessity Of producing their paid
bills The company through the foresight Of the p. u c.
was compelled to keep record of all receipts Of money The
unfortunate part for many people that they often
changed addresses moved from the city hundreds of
them may be located The company will get the best
Of this sort of thing.
Those who have kept their recepted bills even though
changing residence will be able collect their portion of the
big fund.
Alone among Washington newspapers until The Herald
entered the fight The Times shed fierce bright light upon
all attempts keep electric light here and persisteny
baed protect the public against unfair property valuations
which the people would pay probably increasing
rates The result is that electric light users will save one
fourth Of their present bills in the future and will share
equally in what they have been paying in for the last
years.
The original valuation found by the Public Utilities Com
mission of July 1, 1914 $11 231740 The lighting
company went to the courts with claim of $2 900
valuation Through capital expenditures authorized by the
u c. since the date of the valuation the Potomac Electric
Light Companys properties have commission valuation of
about $245OO,000, as Of December 81, 1924
The agreement will be seen merely allows the company
about 100000 for increased original valua
ton namuch the valuation agreed upon for future
rate making purposes about $285O000O valuation of
$S2000000 recognized by the commission This includes
100000 in depreciation which the company sup
posed to have
For raemakng purposes, though the total valuation com
promised upon is $2500000 and this is what the people
Of Washington will pay return upon in the future including
Of any further capital expenditures authorized by
the P. q. g.
Justice STAFFORDS decision upon the old litigation will
not now be in the Of finishing touches
to the compromise was largely through Justice Stafford
sensible communication Of his prospective to both
sides in the legal tangle that the compromise reached
The details of the compromise far u G. is con-
the able assistant Engineer Commissioner representing
gineer Commissioner BELL chairman Of the Public Utilities
Commission.
Only future developments will tell just how well the public
has Jared in the agreement and these developments will be
awaited with interest At first blush however electric
light of Washington have something real
tangible in lower electric light rates and big Of that
juicy trust fund The fight of The Times rewarded to that
extent and it stands ready to continue the