Evening star., 1925-12-03
CUT IN POWER RATE
ON JAN. | APPROVED
Utilities Committee Accepts
Lighting Company's Offer
to Reduce Charges.

The Public Utilities Commission this
,fternoon accepted the offer of the
Potomac Electric Power CO. 10 con.
slider reduction in electric light rates
Immediately without waiting for com
plete figures of the earnings for No
vember and December.
This means that whatever reduC-
tions are agreed to within the next
few weeks will be effective in January.
whereas they would not have started
until March had the Commission
waited for final reports Of the com
pany's business for the year 1925.
Announcement was made 4 month
90 by William r. Ham that the power
company expected 70 have a lower rate
schedule early in 1926. but late yester-
day afternoon he made an offer to the
commission 10 make the revision eff
!ective in January by estimating the
"ompany'S income for November and
december instead of waiting for COM
Dlete returns for the year. II final
figures are awaited the reduction prob
ably would not be effective until March.
S36O.O00 Available for Cut.
1t has been unoficially calculated
that acceptance of the company's
offer to advance the date of the re
duction would mean a saving of an
additional $50. 900 to consumers on
their light bills foT the year 1925. II
is expected that the total amount 10
he availab BILE for reduction for the
entire year 1925 will be about
$3.50 900
Indications at the District Building
this morning We're that the commits
sion will accept the offer of the COM
pany to work out the reduction i'm
mediately by estimating the earnings
for the last two months Of 1925.
Maj. w. L. r. Covell. assistant to
the commission. said TODAY il was i'm
possible TO predict at this time what
the reduction on household current
will be The first question to he de
termined is the total amount in dol
lars that can he applied TO n reduc-
tion and then decide how this saving
should he distributed among the sew
eral classes of users.
There are different rate schedules
for household lighting. for CONNER
cial establishments, for current used
in cooking and for other special uses
OF electric power.
The present primary rate for house
hold current is 7l2 cents per kilowatt
hour While this may he made
diCtion is a mere guess until ii is de-
cided to what extent each rate sched-
ule should share In the cut.
The reductions anticipated for 1926
will he an automatic result of the
agreement entered into between the
company and the commission last De-
cember, when the long standing dis
pute over rates and valuation were
settled.
The agreement reduced the rate to
712 cents, allowed the company a re-
turn of ~ per cent a year on a
valuation of S32,500,000 and provided
. that if the company's income for a
year should exceed ~ per cent
return. that half of such excess in
come should be returned to consumers
in reduced rates and the balance kept
by the company.
Officials of the commission believe
the company's earnings increased
| this year because the reduction in
rates encouraged the use of electricity
Will Study Merger.
The commission also may announce
this afternoon what its next move will
he on the merger situation. 1t will
take up for consideration the letters
from the Washington Railway and
Electric Co. and the Capital Traction
Co., in which they stated that while
conferences have been held. it would
be inadvisable to predict the possible
outcome at this time. The letters
We're in answer to a query from the
commission as to the prospects of the
companies agreeing on a consolida-
ton in the near future.
Other matters which may be acted
on this afternoon are:
The proposed new regulations to
govern taXicabs and hackers, which
would require companies and indi-
vidual operators to show financial re-
sponsibility, make the use of meters
mandatory and prevent Implications
of color schemes in painting cabs.
Pending applications for a motor
bus line on Rhode Island avenue and
| for extensions to the Massachusetts
avenue, the Woodley road and the
Chevy Chase loop bus lines.
Pending applications of the Wash
ington Rapid Transit Co. to extend
its local bus line north on Sixteenth
street to the District line and of the
Capital Traction Co. to run its busses
down Sixteenth street from Kennedy
street to Potomac Park and the busi-
ness section.