Evening star., 1924-11-07
DEADLOCK IN MOVE
TO CUT LIGHT RATE
T08CENTS| IS SEEN
Ham Will Fight Reduction to
That Figure-Citizens
Against Any Other.
PEPCO WILL CONSIDER
FIGURE BELOW CENTS
Compromise Settlement Desired to
End Impounding of Fund
Every Month.

The Potomac Electric Power Co. is
willing TO consider compromise rate
Tor current of something less tina =
the 10 cents per kilowatt hour it
now collects. but will not agree to
a rate as low as cents.
This was made plain this morning
by William F. Ham, president of tn.
company, before he went into CON
ference with Maj. W. Z. r. CovelI
Assistant Engineer Commissioner, 10
discuss the suggestion for a settle
ment that would put a stop to the
impounding of a part of the money
paid to the company each month BY
consumers.
From reliable sources it has been
learned that the commission will not
be likely to consider agreeing to r
rate higher than 8 cents.
Deadlock Is Seen.
Taking this intimat ation, togethar
with the statement of Mr.. Ham, mad
it seem today that there is lit;l.
hope of compromise being reached
at this time.
The rate for current now author
lied by the Utilities Commission i
1857 cents, but the company, sine"
1917, has continued to collect the
old 10-cent rate under a court in
junction pending final settlement o
the dispute over the fair value of the
property.
The purpose of William NICK. Clay
ton of the Federation of Citizens As
sociations in proposing a compromise
rate for the time being was to put a
stop to the setting aside of the diff
ference between the 10 cents the con-
sumer pays and the 7.67 cents the
company keeps.
Fund Now $5.s5s,310.
This impounded fund now amounts
to $5,959,31o, and is growing at the
rate of almost a million dollars a
year If a compromise rate should
be agreed upon, the large sum al
is until the court fight is over, but
from now until that time the public
would get the immediate benefit Of
some reduction from the 10-cen t
charge.
IF settlement can be arrived I
that will be satisfactory to the pub
tic and fair to the company we ar
willing to consider the plan, but it is
not our purpose to try to drive bar
gain with the commission" Mr.. Ham
stated this morning.
If anything should come of the
present movement it is almost cer-
tain to be tentative rate, pending
a final settlement of the value of the
power plant, which is the basis for
making permanent rates.
Compromise Is Doubted.
Persons familiar with the situation
believe the commission and the COM
pany are too far apart in their ideas of
the physical value of the property t"
reach a compromise valuation out Of
court at this time.
Following his talk with Mr.. Ham this
morning, Maj Covell will confer this
afternoon with Mr. Clayton to get the
views of the citizens associations on
the suggested compromise.
If the movement to agree on rate
| that would give the company a little
more than the commission now allows
and yet less than the people are now
| required to pay fails, the commission
will hold a public hearing to consider
a further cut in the rate of 1857 cents.
| Such a reduction. if approved by the
! court would add still further to the
| amount going into the impounded fund
! each month.
| The position of the power company at
| the forthcoming rate hearing will b.
| that the commission must make an en-
| tirely new valuation of the property a
| of 1924 values before any change in
| rates can be made effective.