Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-11-06
EPERTSFRAM|NG
NEW LIGHT RATES
Reduced Schedule to Be
Ready Before Hearing on
Impounding Compromise.

Accounts for the Public Utilities
Commission, directed by Maj. w. f.. r.
Covell, today began working out a
reduced schedule Of electric light
rates to be considered at another
public hearing within two weeks
Before the next hearing is held,
however, representatives of the COM
mission and the Potomac Electric
Power Company will meet informally
to see what chance there is of adopt
ing the suggestion that a compro-
mise rate be agreed upon which
would put stop to the impounding
OF large sums of money pending a
hnal settlement of the value of the
company's property.
Situation in Nutshell.
Here. in nutshell, is the involved
situation of electric light rates:
In 1917 the commission compl ct ed
It's valuation of the power plant and
on that valuation ordered the rate re-
duced from 10 to cents per kilowatt
hour The company went to the Dis
trict Supreme Court claiming The
value was too low. Under a court
order the company has continued to
collect the 10 cents, but has only been
allowed to keep the amount fixed by
| the commission.
rates has been placed in an impound-
ed fund and now amounts to more
than S5,000,0 900, which is to go either
to the company or back to the con-
sumers, depending upon the final
valuation when the court fight is over.
Another Rate Made.
In the past few years the commits
sion has further reduced the rate to
houSeholderS to the present level of
I.6i cents, which merely increased the
amount in the impounded fund, since
the 10-cent rate is still being collect
ed.
The proposal MAIDS at yesterdays
hearing by William Mex. Clayton. of
the Federation Of Citizens Associa-
tons was that instead of further re-
ducing this 7.67-cent rate and con-
tinulng to impound the difference be-
tween that and 10 cents, an effort
be made to arrive at a compromise
rate somewhere between 1.67 cents
and 10 cents
The effect of such an agreement
would be 10 give consumers the i'm
mediate benefit of some reduction
from the 10 cents which they have
never stopped paying. Mr.. Claytons
thought was that this compromise
rate should be effective only until
the value of the property is finally
determined. The 100000 already
impounded would remain intact until
the valuation dispute is settled. but
no more money would be tied up in it.
Maj. Covell. the new assistant to
Chairman Bell of the commission
stated today that before the next
hearing is held he would call a con-
ference to consider Mr.. Clayton'S
plan.
Ham FaVOrs Conference.
William F.. Ham, president of the
power company. stated that he would
be willing to take part in such a con-
ference with a view to arriving at a
rate on which the impounding could
be stopped.
If reasonable compromise rate
can be arrived at it will be submitted
by Maj. Covell to the commission at
the forthcoming public hearing.
If it develops that the two sides
are too far apart on which would be
a fair compromise rate. then the ex-
pertS of the commission will recon-
mend further reduction in the 7.67
rate and let the impounding go on
until a final valuation of the prop
erty is obtained.
These proposed lower rates will be
made public 10 days before the next
hearing to afford the company an
opportunity to answer them at the
hearing.
The company made it plain at yes