The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1926-10-05
PUBLIC PAYSF0R|
UTILITIES PACT /
Continued from PAGE I'D

Continued from PAGE I'D
wav company sells to other com
panies not owned or controlled oy
it and appropriates the revenue
therefrOm. ..~-----. P.
cit appears that the above ar
rangement for the receipt or, ana
payment of power, now in erect A.
Substantially the arrangement winch
has been in effect since the sigh
ing of the agreement and that the
terms of the agreement have neVef
been complied with. -. ~
Guarantees Bond Payment
Pointing out that. the agreement
requires the railway, company 20
guarantee the payment Of bonds
and to pay a specific price lor.
the power received, the. comn1ls-
sion's order continues: /, -
Nowhere in the section fmea:E
ing section Of an act OF Cor !
gress granting charters to- the COM
paniesJ is the railway company "au.
thorized to contract for, or puf'
chase power to sell to other COM
panies, nor for any other purposes
than for the operation OF its ana
it's subsidiaries railways.
Although the order brought out
tbe fact that the companies vlgor-
ouslv fought any change in tho
agreement, contending that it was
not subject to the revision or regu-s
lation by the commission, the com.
missions order went on:
.'In view of. the foregoing, 1t.
appears to the, commission from
the evidence so far adduced:
Calls Pact Subterfuge
'.That the joint operative arrange
n,ent between these two companies
is merely device to cover what
is in reality sale of electric
energy by the Potomac Electric
Poyve4. Company to the Washington
Railway and Electric Company
'.That the sale OF electric energy
by the Washington Railway ana
Electric Company should be dis
continued.
"That the sale Of this electric
energy by the Potomac Electric
Power Company at rates not IN
accordance with the rates on Tile
with the commission, and for the
compensation testified to, is unjust,
uniustly discriminatory and prefer.
entail and should be discontinued.
The commission said that in its
opinion 1.-The Washington Railway
and Electric Company should also
be ordered to discontinue the sale
of power and the appropriation OF
the revenue therefrom and that the
railway company should be ordered
to pay the electric company for the
IhciH a
railways"
Although the commission was of
the Opinion" that the power COM
pany should furnish a schedule of
rates and charge all railway COM
panies consuming such power in
accordance with this schedule, ex-
cept the Washington Railway and
Electric Company, it never forced
the utilities to comply with this
opinion. according to the records.
Order Never Enforced
1t was formally ordered on Sep
TENDER Is. 1915, that both com
panies should appear before the
commission within 10 days of
date set by the latter to show
cause. if any (a) why the railway
company should not discontinue the
sale of power, (b) why the railway
company and its subsidiaries should
not be ordered to pay the electric
company for power used and tc)
why the power company should not
be ordered to reduce it's rates 20
consumers other than public utilities
by such an amount as will offset
the increased amount received frosl
public utilities by reason of these
proposed orders.
This order. close scrutiny of
subsequent records of the commits
sion shows, was never enforced.
Had the order been enforced and
the commission carried it's points,
tho Potomac Electric Power Com
pany would now be receiving at
least $266,000 added income each
year from the railway company and
S195, 900 more from other utilities,
according to. the records.
Both these amounts would be
added to the profits of the electric
company. and, in accordance with
it's agreement with the present
commission, would be equally
divided with the public in the form
of reduced rates on successive
years.
Commission officials further point
out that this $461 900 represents the
least possible amount which the
power company would have added
to it's earnings, as the sale price
of power per ki!oWatt hour was
figured to be at the actual cost of
production.