Evening star., 1933-01-19
LIGHT PLANT URGED
FOR FEDERAL AREA
House Group Weighs Report
for Municipal System
on Limited Scale.
The House Subcommittee on Appro-

IHe mouse subcommittee on Appro-
priaticns. it was disclosed today has
under consideration a plan of Otto
M. Rau, consulting engineer Of Phila-
celphia, for establishment of a munich
pally owned power plant to serve only
the concentrated area in which the
Government buildings are located.
Rau, at the direction Of the commit
tee, made an exhaustive survey of the
power needs of the District with a view
to establishing municipality owned
and operated service. both for private
and Government consumers He re-
ported that such service would cost
S35 900 900 to establish. and would save
approximately S4000,000 a year, but
pointed out that the most logical plan
for the Government to undertake at
| this time would be limited utility"
for the Federal area. A plant for this
area. he said. could be established for
S10,000,000 and would take over about
Is per cent Of the business of the
Potomac Electric Power Co. including
the entire street lighting system.
Predicts Big Saving.
BY establishing such limited util-
ity," Rau said, many of the difficulties
involved in the establishment of a COM
plete municipal power plant would be
avoided. and with the use of the exist
ing highly efficient plants at the Capitol
and navy yard as auXiliaries, produce
power cheaper than from a munich
pally owned plant.
Rau explained that the municipality
owned limited utility could take over
80 per cent of the Government business,
and slowly acquire the private business
in the concentrated Government area,
either by lower rates or the desirability
of using municipal service as against
private service. In other words, he
said, the private business would remain
competitive. and if private consumers
wanted to connect with the municipal
system they could
Such limited utility would work in
with the existing isolated plants that
you have, -Rau declared You have a
good plant in the Capitol power plant
here, and you have very good plant
at the Navy Yard By establishing a
highly efficient, well designed municipal
power plant. so that the first unit would
take care Of all the requirements in
this district, using the two existing
plants rs standby capacity and for
heating purposes and Winter use when
your peak load is on. you could pro-
duce power even cheaper than you could
from complete municipality owned
plant. You would have better load
factor; you would make use of the exist
ing facilities that you have, and you
would keep your capital account down,
so that you would make really better
showing by such a utility than you
would if you attempted to cover the
entire District of Columbia"
Estimates Much Lower.
It was estimated by Rau that the
cost CT production in such a plant
would amount to 1.34 cents kilowatt
hour, whereas the Potomac Electric
Power Co. produces power for 16
kilowatt hour and sells 1t to the Gov
ernment for 2.65 cents. The produc-
ton costs, however, do not include the
cost of distribution, which power COM
pany officials declared is an important
factor, due to transmission losses and
the value of the property in the ground.
Rau brought out in his testimony be-
fore the committee that loss to the
power company of IS per cent of its
business through the establishment of
the so-called limited utility would not
necessarily result in increased rates to
the remaining rs per cent of private
consumers, although it would materially
defer any further decreases. The COM
pany, he said, would lose the consumers
of lcw-cost power and retain the great
est part of the profitable business.
The limited utility" Rau suggested,
should be located and designed on the
basis of plant for providing service
for the entire District and expanded
as necessities grow.
Rau explained that the power needs
of the District are approximately 462,-
n m Iii NJ lNo@ nt
OF so per cent, requiring plant capacity
including reasonable increase for future
growth of 125,C00 kilowatts, using the
Navy Yard and Capitol power plants
for reserve and standby capacity.
Other factors cited by Rau were
that the amount paid by the Govern
ment for electricity, including the cost
OF power generated at its own plants,
amounts to approximately $2,517,16 a
year, and the amount paid by private
consumers is S8,259,756, or total of
$1O,778,9l9. The average amount paid
by all consumers, he said, is 2.71 cents
a kilowatt hour, and the average
amount paid by the Government for
power purchased Is 2.65.
Claims Are Disputed.
The average paid by private con-
sumers for residence service. he de-
clared, is Alt cents, for commercial
service 353 cents, for power 1.54 cents,
and for street lighting 4.23 cents.
Rau said the limited utility produc-
ing current at 1.34 cents kilowatt
hour would bring about an annual saw
ing of $1,120,000. The cost of distribu
ton, however, was not given.
Rau's detailed report, which has not
been made public by the committee,
estimated that a plant to take care of
all private and public needs would save
the District $3,0OO,00O a year and the
Federal Government sl,000OO0. Such
closed in his testimony before the COM
nittee, would take Is years to amortize
on the basis of per cent interest and
per cent amortization