The midland journal. (Rising Sun, Md.) 1885-1947, 1925-12-11
coNowINco PLANS MODIFIED
Service Commission Approves Gen.
eral Features OF Hydro-Elec-
trio Project

trio Project
With notifications in its financial
program, the Philadelphia Electric
Co. plan to build a .hydro-electric
plant across the Susquehanna river
at Conowingo, Md, was approved by
the Pennsylvania Public Service
Commission at Harrisburg on Friday
Instead of rental payments
which the commission estimates to
amount to between 8.S and 9.S per
cent on $52,2O0,0OO (the electric
company's estimate of the cost OF
building the damn the commission
provides fiat rate of Z per cent,
on the actual cost of investment.
" Investment" the Commission
holds, is to be defined in conformity
with the Federal Water Power act.
Il An issue of "Class A" bonus
stock, as proposed by the electric
company, is eliminated. Payments
of $1,170.0OO to Drexel and Co., and
81, 093,967 to meet the Indebtedness
of the Susquehanna Power Co. are
not recognized as capital investment.
AS the result of these changes, the
report says there will be assurance
that the profits of the project will
| flow back to the Philadelphia Elec
ric Co. for the benefit OF stock
holders and rate payers"
The bonus stock feature of the
| Conowingo plan, which the COM
mission eliminated, was attacked by
the Philadelphia Rapid Transit Co.,
as one of the ''insidious features" OF
the project when it first launched its
campaign against the entire proposal
Under that plan the subscribers to
shares of the common stock as an
added return for their financial
assistance.
The commissions ruling that the
interest on the investment be re-
duced to per cent will result in a
saving of $931,0OO a year to the
company, said P. r. T. officials,
which eventually would be reflected
in the amount paid by the rate
payers, provided the company's esti-
mate of $52,2OO,0O0 of the Como
wingo's cost was carried out.
In order that it may have access
to the property, books and records
of the two Maryland corporations
which act as agents of the Pennsyl-
vania corporation, the commission
requires that the Philadelphia Elec
| trio Company and it's Pennsylvania
subsidiaries shall cause the Mary
and corporations to keep such books
and records relating to the project
as the Commission may require
The Pennsylvania corporation must
produce them on request OF the
Commission, land to allow any
representative of the Commission to
have access to the records or the
property of the Maryland company
at any time.
The Public Service Commission
accepts the Philadelphia Electric
Co.'S figures on the cost of construc-
| ton and, ignores the estimates OF
P. R. T. engineers who placed the
estimated expense at between $780,
OOO, 900 and $1OO,OOO,O00.
The reports of the Federal Power
Commission and the Maryland Pub
lie Service Commission, both Of
which have been represented at the
hearings on the project, have not
been made.
The commissions action Friday
denies the assertion of P. r. T. Of
ficials that the entire plan was un-
duly expensive and less efficient than
construction of steam generating
plants.
Representing itself as 1.-THE largest
individual user of Philadelphia Elec
trio Co. power" the P r. L. began
it's attack last March s. Hearings
continued internationally until late
in October, about thirty being held
in all.
In considering the construction
plans of the electric company engi
neers, the Public Service Commission
points out that an annual saving OF
6O4.OOO tons of coal, which later
may increase to 100000 tons
year, is one of the persuasive
features
The electric company proposes to
erect a dam with crest elevation OF
SO feet, surmounted by steel gates
capable of varying the pond level to
an extreme height of 1888 feet. The
dam site is in Maryland five miles
below the Pennsylvania line.
pool, chiefly in Pennsylvania, would
be formed by the dam and this Is
expected to operate seven units OF
$4,000 horse power each which is to
be distributed through Maryland and
Pennsylvania by 100000 volt trans