The Washington times., 1930-11-14
Is Electric Light Agreement
Fair to District People?
Has Not the Time Been Reached for the Agreement
To Be Abrogated or Amendedf

Late in 1924 as the elimination Of long litigation oyer
trc light rates and valuation this city decree
entered by Justice Stafford the District Supreme Court put
ting into effect unusual agreement between the Potomac
Electric Power Company and the then representatives OF the
Public Utilities Commission.
This decree fixed the valuation of the properties Of that
pany $320000 exceptionally high figure long fought BY
the P u. O. and the public.
declared that the company should have definite rate
Of return on valuation of 7 cent and that the re-
turn fell that the company would have the right to de-
nand and get at least that figure
If however the company prospered it would divide with
electric light the annual surplus above 7 return
by reducing electric light rates in the following calendar year
At time the charges howa hour to average users
was 7A cents.
Under exceptionally prosperous conditions the company has
IN the six years. including this year estimated to December
81 made ABOVE its fixed return Of this $3ooo
O including next years reduced rates. will have gone the
Washington public
The existing electric light charge 1T per owatt and
under arrangements making will drop close to cents per
Elowatt hour In 1880
The Potomac Electric Power Company informs the Public
Utilities Commission that its estimated profits for 1880 will be
approximately $1,600000 above its assured return.
It is wonderful showing the company Is making and is
likely make in the future the rich territory in the Dis
trict and around it is developed
In fact the gold mine Is yielding such tremen-
dous profits that the question arises as to Whether the
public, though receiUng marked benefits, getting
a square deal, and GDhether the agreement should
longer be continued
There is good ground for believing Richmond Keech
Che alert Peoples Attorney before the r o. o. is giving
90 that the public will share fully in the stream Of wealth
Il well that he is going into the whole thing from top to
bottom and that his aims the welfare Of Washington
people He should not stop until he has analysed every
figure and item in detail. .@..'....*
Just people of this city do not wish to deny any local public
utility reasonable upon honest valuations They do
not begrudge the Potomac Electric Light Company It's pros
perty.
Still it clear that the existing agreement is
lUhoIy onesded sUth the bulk of the benefits going
to the electric light company Is much like the old
shell game The gunner OF the shells couldn't lose.
At any time the Potomac Electric Light Company fails
$49O00O00 compel that return from the public by the
courts.
Electric light MUST feed corporation that much
all times The rate for electric lighting would then 60 up
The company stands to lose nothing.
30 why shouldn't the whole thing be put straight IA
per cent basis with the public prong to the full extent Of
surplus net earnings?
Including its surplus profits the company since 1924
have been 1926 845 per cent 1926 84 per cent 1927 $685.
1928 S7s 1929 ST. and for this year. above per cent
It is canddly admitted that the electric light rates for this
city about the lowest in the country and the charge
to be still lower. is clear that have benefited
much.
1t is quite clear, tOO that If the company had
been earning for the last six years. just the return
GOwed by the court Of elecricity in this city
Woud be today $3,OOOOOO better off financially and
the charges GOOuLd probably be THE LOWEST in the
United States.
It not be justly contended that this existing de-
cree arrangement permanent that the Public
Utilities Commission would have powers left is the rate
making body for the District The law gives that authority
its decisions subject change the courts but the courts
constituted indefinitely fix charges rates that
subject to change by the Public Utilities Commission.