Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-02
Would Change Calculations
Basis if Excess Income
Is Shown.
PEOPLES COUNSEL ASKS
UTILITIES BODY COURSE
Keech Desires to Avoid Conflict in
Seeking Modification of Pepco
Consent Decree.

Declaring he did not believe any
public utility should be permitted to
earn rate of return of 10 per cent,
Senator Capper of Kansas, chairman
OF the District Committee, indicated
today 1t was his belief that If the
present arrangement for fixing electric
rates in Washington results in such a
return, the basis should be changed.
In approving the proposed electric
rate schedule for the new wear a few
days ago, the Public Utilities Commits
sion announced its intention to seek a
reconsideration of the consent decree
under which electric rates have been
fixed since 1924.
Keech Demands Information.
Peoples Counsel Richmond B. Keech
IN letter to the commission today
demanded to know what modification
the commission intends to-seek of the
consent decree governing rates charged
by the Potomac Electric Power Co. He
said that it was important to him to
know this so that there may be, II
possible, no conflict between the courses
to be taken by him and by the COM
mission with respect to modification of
the decree.
II have noted with particular interest
the fourth paragraph of the order Gre
lating to the rates for 1881 wherein
the. commission states: Action should
be taken Immediately for the purpose of
obtaining substantial reduction on the
rate OF return to be earned while pre-
serving the general method contained
in the consent decree for the determi-
nation of rates." MIR. Keech wrote.
Cites Statement to Press.
Likewise, IN your statement to the
press Immediately after the promulga-
ton of the afore mentioned order, you
state that counsel for the commission
has been requested to take the appropri-
ate court action Immediately to secure
material changes in the consent decree,
which will preserve to the public the
advantages of that form of regulation,
which, at the same time, will lower the
rate OF return to be made by the COM
pany and avoid prolonged litigation pre-
venting or delaying future reductions.
In order that may know what
steps to take in the interest of getting
further reduction of rates and to pre-
vent a continuance of unjust and I'M
reasonable rates, with excessive returns,
I would appreciate it if you would adj
wise me just what you have requested
your counsel to seek in the way of
modification of the decree.
Il also note in the second paragraph
of your statement to the press: 1T (the
commission) reserves control of the
case, and fixes the rates for an in
definite period I would appreciate 1t
If the commission would advice me for
what purpose it has retained control
over the case.
Wishes to Avoid Conflict.
ut is important that 1 be Com
DletelV advised as Tn the antiriY1ated
action of the commission in order that
there may. be, if possible, no conflict
between the courses taken by you and
myself in order that reasonable and
just rates for the consumers may be
obtained as soon as possible. To this
end. I will not conclude as to what
course shall take until advised by you
as to the questions propounded in the
premises. 1t is for this reason that
respectfully ask that you give this
matter your immediate attention"