The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-11-06
CQVELL At
WORK ON !.
CHANGE
Public Hearing and Confer
ence Arranged Long Court
Fight Not Yet Ended

The Public Utilities Commission
is planning to reduce electric
rates in Washington. The modi
fled rates win be made public
within a week and a public hear
ing called before they are ordered
effective.
The lower charges viii be put
into operation within sixty days
unless a compromise agreement,
along the lines suggested at q
public hearing yesterday, is reach
ed between Representatives of the
commission, the Potomac Electric
Power Company and the Fedora
ton of Citizens Associations. y
Must Wait on Courts.
8, The public will not actually feel
the lowered rates at this time
not until the courts finally dispose
Of the electric company valuation
case which has been in litigation
for seven years. The consumers
will continue to pay 10 cents per
kilowatt hour, although the rate
established by the commission will
be 25 or more per cent and lower,
the difference being impounded.
Accountants of the commission, un.
der the direction of Major Will
liam E., R. Covell, special assistant
of the Public Utilities Commission,
today are preparing the new SEIZED.
ule of rates.
Major Covell said today the
changes would not be made public
until after the conferences with
company officials and representa-
tives of the public.
II intend to keep these rates
locked up in my desk drawer for
the present" he said.
In a few days Major Covell will
cali into conference Earl v. Fisher,
executive secretary of the commits
sion; Byers NICK. Bacnlnan, chief
accountant Of the commission; VIII
liam F. Ham, president Of the Po-
t0mac Electric Power Company, and
other officials of the corporation,
and William NICK. Clayton, repre-
senting the Federation Of Citizens
Associations
Data for Conference.
1--WE will discuss at this confer
ence an actual reduction in electric
current rates to the people," Major
Coveu said. "We will discuss meth
DDS of stopping the further i'm
pounding Of electric oates in Wash
ington.
Suggestion from representatives
OF the electric company and Mr..
Clayton will be heard. If these
suggestions are fair and reasonable
and IL We can all agree that they
are, then. am going to recommend
to the Commission their adoption.
IF no agreement can be reached,
] am going to take the modified
rates out of my desk drawer and
recommend that the Commission
make them effective.
Failure to reach an agreement
means continuance of the fight
in court and continuance OF the
10 cent electric charge in Washing.
ton"
Points In Law Case.
The Potomac Electric Power val.
uation case, involving millions Of
dollars held in an impounding fund,
together with compromise plans, Is
briefly as follows:
l. In 1918 the Public Utilities Com
mission announced the valuation of
the electric company, on the basis
Of which electric rates were reduced
from ten cents to eight cents per
hllowatt hour.
The electric company went into
court, claimed the valuation was
wrong and asked a much higher
valuation.
At the same time the company
secured an Injunction preventing
the eight-cent reduced rate becom.
ing effective.
The court decreed, however, that
the company in collecting 10 cents
must put aside the difference be.
tween the dime rate and the charge
established by the Commission.
Since 1915 the case has been in
the courts and the company i'm.
pounding the difference in rates. ThiE
impounding fund is now nearly
$S,OOO,OOO, disposition of which fund
whether the public or company gets
It, depending upon the Outcome OF
the valuation case now in court.
Payments BY Consumers
Washington consumers since 1916
have been paying 10 cents per kilo.
watt hour for electricity, although
from time to time the commission
has made changes in the rates
varying from 1857 cents to SIS
cents per kilowatt hour.
The rates set by the commission