Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-09
OPEN RATE FIXING
FOR POWER IN 1881
SOUGHT BY KEECH
Public Utilities Commission
Postpones Determining
Schedule TIL Thursday.
RICHER PROFIT FEARED
BY PEOPLES COUNSEL
Asks Revelation of Secret Negotia-
tions-SayS Proposed Reduction
Will Not Accrue.

A last-minute Tight TO bring the mat
yer OF determining 1891 electric rates
INTO the open is planned by Peoples
keech presented his petition at a meet
Ing OF the Public Utilities Commission
yesterday, and the commission decided
20 postpone the fixing Of rates until
Thursday.
After the meeting there was a differ
ence OF opinion as to whether Mr..
heech had actually raised the point
tnat ne wants q public hearing. Chair
man Mason M Patrick said that he did
not think Mr.. Keech had argued for
the open hearing. Mr. Keech said that
ne mad specifically asked for 1t and that
ne mad read to the commission the law
on the subject, in paragraph 80 Of the
Public Utilities Commission act. which
seemingly requires q public hearing be-
lore any change In rates Is ordered,
Reduction Tentatively Accepted.
The Potomac Electric Power Co. has
onered, and their offer has been tenta-
lively accepted by the commission. TO
reduce the rates $3.50 900 next year, by
reduction OF the primary rates from
Al 10 81 cents per kilowatt-hour with
accompanying reductions in secondary
rates: Mr.. Keech holds that the rate
scneouie presented will not only not
accomplish this or any reduction, but
tnat 1t VIII, on the contrary, bring
about an increase in the profits Of the
power company.
In order to leave no doubt as 70 his
stand on the public hearing, Mr.. Keech
announced today that he would file
another formal demand with the COM
mission, In writing.
Thus far all negotiations between
tne commission and the power company
nave been conducted in secrecy. The
envelopes containing the various docu-
ments In the negotiations are sent from
hand to hand in brown envelopes, bear
ing on the outside q stamp in large
purple letters-N r P-meaning mot
for publication" Mr.. Keech has con-
tended all along that the public Is
entitled to follow step by step the
process by which the new rates are
reached. He explained his stand in a
sion yesterday, which said, in part:
Consumption Rise Foreseen.
The newspapers Of Saturday ad-
vtsed me that you would consider on
the 9Th instant the schedule of
rates submitted by the Potomac Electric
Power Co. for the year 1881. am also
advised that at time you would con-
slider the memorandum submitted by me
public hearing.)
while have not computed what the
return OF the company would be II the
schedule as submitted were approved,
It Is perfectly apparent that 1t would
lar exceed return of ~ per cent. It
is also self-evident that the company
has not taken into consideration an
increase in consumption that may be
reasonably anticipated.
THE inequity of the proposed sched-
ule Is well manifested by reference to
the charge for domestic consumption.
The reduction in revenue in Schedule
A is really imaginary. It Is estimated
that by reducing the rate for this class
OF consumers to AZ cents per kilowatt
hour there would be a reduction of
1881 ,850.62 in revenue. In this esti-
mate, however, no consideration has
been given to the fact that among these
consumers there are many who are pay
ing and will pay the minimum bill of rs
cents; hence as to them there will be
no loss In revenue due to the decreased
rate.
More important still, however. In the
fact that the average increase in con-
sumption In this class since 1928 Is
1922 per cent. If this be taken into
consideration, as I believe 1t properly
should, the revenue for the year would
be $3. 431 $50 as compared with $3,292,.
958.32, or an increase in revenue. In
stead OF reduction, Of approximately
$l3S,673.68. There would, Of course, be
some increase in operating costs due to
the enhancement in consumption.
Time Considered Sufficient.
IF the commission has determined
that the decree Ca decree of equity
court under which the rates are an
nually determined) Is not susceptible of
such construction or Interpretation as
will permit 1t to consider the elements
set forth in my recent memorandum.
then 1t is my view that the commission
should NIX date for q public hearing
In order that every one interested may
have an opportunity to express him
self as to whether or not the so-called
consent decree IS now q Just and rea-
sonable document. There Is, in my
opinion, sufficient time for this mat
ter to be accomplished"
HOWELL PLANS STUDY.