Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-01
OPINION OPPOSES
SUBMETER|NG PLAN
Contrary to Terms of Order
Setting Up Rate of Sched-
/ uIe, Commission Holds.

The Public Utilities Commission in a
formal opinion handed down today de-
cided that the practice of Submeterine
of electric current by owners of large
buildings to tenants. where the current
is bought at wholesale rates and re-
sold al higher rates is contrary to the
terms of its order setting up rate
schedule for the Potomac Electric
Power Co.
The commissions opinion does not
state what steps, if any. it will take to
abate the practice. but it was explained
on behalf Of the commission that this
will be left to the power company in
enforcing It's individual contracts with
the landlords who Submeter their cur
rent for profit. If the company finds
difficulty in enforcing the contract it
is expected to apply to the commission
for relief.
The opinion calls attention to a
clause in the rate schedule for 1929
as adopted by the commission, which
reads, IN part:
The consumer agrees not to use the
current for any purpose or for addi-
tlonal equipment other than that pro-
vlded for in this contract without first
having notified the company in writing
and having received the company'S con-
sent thereto. 1t is expressly understood
and agreed that electric service fur
nished to the consumer shall be for his
ther. or their) own use and may not
be remetered Cor submetered) by the
consumer for the purpose of selling
electric service to another or Others"
Regulation Appears Reasonable.
The commission finds that this regu-
1ation. designed to limit the purchase
OF electric energy to the customers own
use. appears to be reasonable.
Referring to the decree of the District
Supreme Court in which the company
was compelled to dedicate one-half of
any excess earnings over 7l2 per cent
on fair value each year to reduction of
rates. the opinion says:
Under this agreement prompt re-
auctions in rates have been made each
year since 1924. 1t can hardly be uues-
toned that the net revenues of any
year (Which determine the rates for the
following year, would be affected by the
fact Of whether the current Is sold to
the ultimate consumer at rates which
are proper for him to pay or is sold to
a middleman at rates which may or
may not apply to the ultimate consumer
to whom he sells. The question of
whether submetering for sale shall con-
tinue, is, therefore, clearly affected with
o public interest"
Continuing. the opinion says:
AN order approving provision I'M
der general terms and conditions re-
ouiring that the applicant consumer
agree that the service purchased is
for his own use and not to be re-
metered for sale to others does not
deprive any one Of service. but merely
prescribes the terms and conditions
under which he may get the service
required by him.
No Discrimination Seen.
Suggestion has been made that the
proposed order would result in discrim-
ination because it would permit an
owner of a building to buy electricity
for the entire building, providing he
does not remeter such electricity for
sale to tenants, but would prevent his
neighbor from buying electricity for
similar building and selling the cleo
tricity required by the tenants on a
metered basis. We do not see such dis
elimination. In either case the owner
may buy electricity required by him for
furnishing his tenants lighted and cleo