Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-03
Pepco Refuses to Compro-
mise With Utilities Commits
sion on Consent Decree.
PETITION DRAWN UP
FOR EQUITY COURT PLEA
Company Declares Time InoppOr-
tune for Change in View Reduc-
ton in Earnings This Year.

court battle for reduction of Wash
ington's electric rates appeared ineyi-
table today when the Potomac Electric
Power Co. refused to enter into anv
compromise with the Public Utilities
Commission, which claims that under
the present system the power COM
pany's rates are excessive.
Vice President S. Russell Bowen de-
livered to the commission a letter con-
tanning the action taken by the board
OF directors OF the company on Wed
nesday. This sets out at length a reso-
luton adopted by the board in which
it points out that the gross and net
earnings OF the company during Janu-
airy and February suffered considerable
reductions over those returns for the
same months in $780,
long list Of other reasons is also
appended why the company should not
accede to the suggested modification of
the consent decree reducing its basic
rate OF return from ia per cent to 63s
per cent With sliding scale of reduc-
lions to take care Of excess earnings.
NNS AANAE AANAN AfSHs
The resolution sets out that the agree
ment contained in the consent decree
was entered into in coed faith by the
parties concerned for valuable con-
sideration, and that it is q profit-sharinz
fundamentally advantageous to the
company and the public alike. The
company sets out the fact that the
maximum electric rates here are the
lowest in all cities with 100000 popula-
ton or more, and taking this into con-
sideration it is denied that the cor
poration's return has been excessive.
Specifically the company sets out that
its gross business of January and Feb
Tuary 1881. showed decrease Of $3I Ola
as compared with the same months of
1880, whereas the business in January
and February, 1890 had showed an in
crease of Sl77.70l over the business in
January and February. 1929 Further,
the net operating revenues Of the COM
pany for January and February. 1891.
were said to have decreased by $s5,3l5
as compared with the same months In
1880. whereas these figures for January
and February for 1880 had showed al
increase of S125,6l3 over the CORE
spending months OF 1929
Time Held InoppOrtune.
The resolution ends up: "All'of which
u
suggest to the minds of the commission
that the present time Is inopportune
to raise an issue of this character, more
particularly because further period of
time is necessary to demonstrate the
actual effect of the new rates under
present economic conditions and be-
cause it now appears likely that the
conditions Of which the commission
complains will be met by the opera ton
of the said agreement and decree"
The text OF the earlier part Of the
resolution is as follows: e
Whereas the Public Utilities Com
mission heretofore presented a SUCCESS
ton that the consent decree in the case
of the Potomac Electric Power Co. be
modified by reduction in the basic
rate OF return from ia per cent to 634
per cent, and also submitted a table OF
certain allowable rates of return in
respect thereto. the maximum upon the
same volume of business In the preced-
ing year being less than rs per cent,
end further submitted a suggestion
whereby the company would permit the
conflscation OF its property by agreeing
to the following:
(Here follows the sliding scale sue-
2ssted by the commission.)
Good Faith Cited.
Whereas the agreement between the
SOilllllESlOu anu Tie company was en-
tered into in good faith by the parties
concerned for valuable consideration
and without limit as to duration, and
was decreed by the Supreme Court of
the District of Columbia on December
81. 1924, and
Whereas the said agreement and
decree provides a profit-sharing inStru-
mentality advantageous to the public
and the company alike and affordins a
practical and convenient method for
the rcadjustment of rates as conditions
change from time to time, thereby
avoiding the expense, delays and annoy
ances of tedious valuations, rate hear
ings and court proceedings; and,
Whereas it was the purpose of the
said agreement and decree that in con-
sideration Of the company agreeing -
accept less than a reasonable return
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