Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-17
BRIDE At ODDS
WITH COMMISSION
Opposes Procedure Ordered
in Modifying Power Rate
Consent Decree.

Corporation Counsel William w.
Bride announced today that he was not
in accord with the procedure for modi-
fication of the consent decree governing
electric rates ordered late yesterday by
the Public Utilities Commission. He
said he would file with the commission
late today or Monday a statement of
his position on the case and then, If the
commission insisted on proceeding in
the manner outlined in the order of
yesterday, he would yield
II cannot Stultify myself" Mr.. Bride
said, after a conference with William A.
Roberts, his assistant, today. He added
that Il shall file with the commission a
statement in writing chewing exactly the
procedure would have advised them to
take in his case had they waited for my
advice. With this on record, if the COM
mission desires to pursue the course
outlined In its order, that is their BUSH
ness, and I will prepare the. petition
for them in the way they want"
Mr.. Bride said he would not make
public the document which he will for
ward to the commission, but that he
had no objection to its contents being
released If the commission sees At.
Acted Before Receiving Advice.
The commission late yesterday after
manner in which it wishes the consent
decree modified. This action came as
a surprise, as the commission had pre-
viously asked for legal advice on the
matter and took its action before the
advice was forthcoming. 1t was learned
today that the corporation counsel had
notified the commission yesterday he
would have been ready with his opinion
today, but the order came through be-
fore his opinion could have been sub
mitted.
Chairman Mason M. Patrick of the
commission said the commission in
sending its order yesterday had no in
tentton OF criticizing Mr.. Bride, but
that through the independent study of
Vice Chairman Harleigh H. Hartman,
the commissions legal member a de-
ctSion was reached on the procedure to
follow which made it unnecessary to
take any advice from Mr.. Bride.
Mr.. Patrick said Mr.. Hartman had
studied the opinion of Justice Jennings
Bailey of District Supreme Court and
mad come to the conclusion that the
commission had a right to go to court
and seek modification of the decree in
the manner outlined. Their decision,
Mr.. Patrick said, grew directly out of
Justice Baileys decision. He said he
had asked Mr.. Bride for legal advice
on January 7, but that Mr.. Bride had
been busy on District legislation that
he had not been able to give the re-
quest sufficient consideration.
The chairman said Mr.. Bride in
formed him yesterday that the opinion
would be ready today, but by that time
the commissions mind was already
made up and the opinion would have
made no difference.
At present the rates are adjusted as
follows: The commission ascertains the
profits made by the Potomac Electric
Power Co. in each calendar year. If
the profits exceed 71a per cent on an
agreed valuation of $32, 500. 900 plus net
additions weighted but undepreciated
since 1924, then the commission orders
the rates for the following year re-
duced to a level which will theoretical
ly use up one-half of such excess.
Modification Plan Outlined.
AS a matter of fact, the reductions
made heretofore have not had the eff
feet of reducing the profits of the
company, but on the contrary they
have increased them so that in no year
since the consent decree went into eff
feet have the profits been less than 10
per cent.
According to the modification which
the commission intends to seek, the
rates will be reduced if in any year the
company makes a return of more than
6A per cent on its valuation. If the
return exceeds 634 per cent, but does
not exceed ia per cent, then one
hall of the excess shall be used in rate
reductions as at present. If, however,
the returns between 734 and 83l per
cent on its value, then the rates are to
be reduced by three-fourths of the
excess earnings If its profits. in anv
year, exceed 824 per cent on its value,
then five-Sixths of the excess shall be
used for the ensuing rate reduction.
In 1880 the company earned 81 $780,
600 in excess of the 712 per cent re-
turn and consequently one-half of this
figure, or $830,000, was used for re-
ducing rates of 1881. Had the modified
form of the decree been in effect the
amount used for reduction would have
been 81 $4,000 In other words. much
greater reductions would have been
made, the difference which would have
been saved to consumers being about
$546. 900.