Evening star., 1924-05-23
HAM SAYS PEPCO
WANTS CHEAP POWER
Favors Great Falls Project if Eco
nomically Sound, He Tells
Committee.
CONSUMPTION IS EXPLAINED
To Be Cross s-Examined by Blanton
at Tuesday Hearing.


pany is vitally interested in the
proposition to develop the Great Falls
water power, if from the proposed de-
velopment power can be secured for
its customers more cheaply than from
the company's own steam plants,
when all elements of cost are taken
into account" William L. Ham, presi-
dent of the company told the special
subcommittee of the House District
committee at the hearing today on
the hydro electric development of the
Potomac River.
MIR. Ham neither advocated nor op-
posed the project, but declared that
his company is anxious. if possible, to
obtain sufficient information in order
to find out whether the power de-
veloped from this project could be
sold to the existing company at a cost
less than the cost of generation by
steam.
obviously, if there can be no saw
ing from the use of hydro electric
bower there would not be any bene-
fit accruing to our customers, and
In that event the project might not
be warranted" Mr.. Ham said.
He assured the committee that his
company desires to assist Congress
kDy data which will be helpful in
the consideration of the subject.
Demands of Capital.
Mr. Ham pointed out that the Tyler
reports shows that the demands from
the federal and District governments
were 63,S41,944 kilowatt hours per
annum and that the project would
not be feasible for the purpose of
the federal and District governments
alone.
1T has been gratifying to u.s." said
Mr.. Ham, that throughout the hear
ing all the witnesses agree that the
distribution of this power should be
continued by local public utilities.
Truly, it would be, as was stated by
one of the witnesses, an economic
crime to duplicate the distribution
system of the Potomac Electric Pow
er Company and compete with that
company in the distribution of retail
power"
Mr.. Ham urged that when consider
ing the feasibility of water power de-
velopment three controlling factors
should be taken into account: the
cost of development and delivering
hydro electric power to the consumer:
the present and prospective market
for such power; the total saving in
the cost of such water power over
other sources of power.
Mr.. Ham expressed the opinion that
it is entirely appropriate for his COM
pany to endeaVor to bring to the at
tention of the committee any data
with regard to the company'S costs OF
steam production and what, if any,
saving will be brought about by the de-
velopment of the hydro-electrlc power.
Soundness Necessary.
Whether the hydro electric project
10 constructed by public or private in
terests, he said, such a project must
be financially sound and should have
sufficient earnings not only to cover
the operation costs, but also the in
terest on the investment and sufficient
surplus to retire the bonded indebted
ness over a period of years.
1T matters not whether one be-
lieveS in public or private ownership
of public utilities" he said, mo such
project should be undertaken by the
government unless it is economically
sound and some direct or indirect
benefit can be derived by the COM
panies and the taxpayers from such
an enterprise
Regarding the market for the power
outside of Washington. Mr.. Ham sug-
gested that this be given most care
full consideration by the committee.
He said that he understood that hy-
ro-electric development is now being
undertaken on large scale by the
American WaterworkS and Electric
Company, or through subsidiary in
Maryland. West Virginia. and Vir-
gina. which makes it quite possible
mere of these developments may be
delivered into Washington even be-
fore the Great Falls project could be
completed and at a cost which would
be comparable to the power obtained
from this project.
He said he also knew that Balti-
more is already partially supplied
with hydroelectric power from the
SuSquehanna River, and that due to a
large industrial load and more favor
able freight rates Baltimore can pro-
duce power by steam at a cost lower
than is possible here in Washington.
Susquehanna Project.
Mr.. Ham told the subcommittee
that he is informed that the Federal
Power Commission recently granted a
permit for another water power de-
velopment on the Susquehanna with
an ultimate development of $4,000
horsepower, the principal market for
which is undoubtedly to be found in
Baltimore.
There is no large power market
south of Washington. Mr.. Ham told
the committee, until Richmond is
reached, 116 miles away, which at
present is partially supplied with
power from hydroelectric plants and
partially from steam plants. The cost
Richmond, with a substation at that
point, would. of course. he said,
amount to large sum of money, and
it is possible that carrying costs of
this line, added to the cost of power.
would be too great to sell power from
Great Falls in that city.
Mr.. Ham explained how the Potomac
Electric Power Company had ac-
uuired its rights at Great Falls.