Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-03-01
PEPCO OWES j. S.
FNE-YEAR REFUND,
IS M'CARL RULING
Must Repay on Seventeen
Basis, as in Case of Other
Patrons, He Decides.
0VERRULES COMPANY
AND UTILITIES BODY
Fund Involved May Reach $780,
000-Denies Special Rate
Given Government.

Controller General McCarl has or
dered collection by the Federal Gov
eminent from the Potomac Electric
Power Co. OF refunds for an additional
I'VE years. declaring the company IN
derpaid the Government in calculating
refunds from it's impounded fund.
In drastic decision rendered to the
Department of Agriculture and made
public today. which will be a prece-
dent for every Government depart
nent and establishment in Washing
ton, the controller general laid down
the principle that the Government
should receive refunds on the same
basis as the general public for seven
years instead of two. since 1t paid
for electricity under the same rates
Although the exact amount involved
has not as vet been disclosed, il was
estimated today by Government Off
Gals that II NAV reach 100000
Five Years Difference Seen.
The public received refunds during
the period from July, 1917. to De
cember. 1924, it Is shown. whereas
the company had calculated the Gov
ernment's refund and was beginning
to pay on basis of only from July
|. 1922. 10 December, 1924, a differ
ence of five years.
Mr.. McCarl in his decision not only
overruled the action of the Potomac
Electric Power Co., but of the Public
Utilities Commission as we'll. declar-
ing the question at issue was for de
cisfon only by the Office of controller
general of the United States
Contention Of the company and the
commission that the Government had
received rates lower than the com
meicial for the period" the McCarl
decision said, was not borne out by
investigation of the contracts and
schedules themselves.
At the refund bureau of the cleo
trio power company 1t was said that
no off1cial notice had az yet been
served from any Of the Government
departments or establishments con.
corning the controllers decision.
sum Will Be Large.
Several of the refund checks for the
departments and establishments have
been sent out. 1t was said. based on
the period beginning July I. 1922.
Not all of the Government refund
checks have as yet been mailed, II
was said. There was no estimate
available at the company as to how
great a sum would be represented in
the five years additional refunds
ordered paid by the company. but
one company Official estimated that 1t
! would constitute a large sum.
The Government. taking all of its
departments, establishments and
bureaus in the city together. 1t was
said, is the largest purchaser of
electricity.
Al the Depa rtment IF Agriculture
| II was said that the decision of the
controller general had been received,
! but that as yet no action had been
taken toward making collection
from the company. The next step,
/ II was predicted by a department
official. would be to call upon the
compa ny for the five years additional
refund.
/ In his decision, the controller gen.
eral said the Potomac Electric Power
| Co. and the Public Utilities Commits
sion contend that so far AS the Gov
eminent is concerned the refund
! period begins on July |. 1922. by rea-
son of the fact that the United States
obtained by contract special rates
lower than the commercial for the
! prior period
ut is to he observed" continued
! United States to a refund. the amount
/ thereof. and the period to which 1t
was applicable are matters for the de-
J termination of this office. and is not
understood that the authority Of the
Public Utilities Commission of the Dis
! trict of Columbia extends thereto, but
! that it's authority is limited to the de-
| termination of rates and not the
! rights of claimants to refunds in this
particular matter.
! Contracts Compared.
! THE contracts between the Govern
! ment and the Potomac Electric Power
! Co. beginning with the fiscal year
| 1918. have been examined and COM
! pared with the commercial rates
| After a lengthy discussion in detail
of the bookkeeping and rates of the
/ power company. together with cita-
! tions Of the law back of the Public
! Utilities Commission, the controller
| general said. the company's rate
/ schedules, effective August l. 1916,
were undoubtedly published in COM
pliance with orders issued under the
authority of the foregoing law, and
| said schedules Of rates are evidenced
! as having been charged during the en-
| tire period ending December 81. 1924.
Comparing these rates with the
| rates contracted for with the Govern
! ment covering the period to July l.
! 1922. inclusive discloses that the rates
given the Government were merely
! the commercial rates published. car
ried into the contracts under numeri-
| cal instead of alphabetical designa-
/ tons AS in the companys schedules.
| identification of the two schedules
! being established by the similarity of
J rates as hereinafter compared, thus:
Schedules Nos. / and d, and T
3 and G.. 4 and f, and rider No. ).
/ and rider No. S. and VI and riders
! "A and 5B and riders Nos. and
| Of the contracts are the same as the
| lettered schedules of the company, re-
/ spectively.
Says Schedules Same.
Thus il is seen that the Govern
| ment obtained nothing different or
more under it's contracts than did or
| could any private user under the same
| schedule"
THE collections should be made
from the company accordingly. and in
submitting the matter to this ONCE
for audit. as required by decision of
this ONCE, after collection is
| made there should be a showing with
| respect to all payments covering cur
rent furnished after July 81, 1917. on
which claim for refund was not made
| that the rate paid was not in excess
Continued on rdee :. Column /.