Evening star., 1933-01-11
The Light Rate COMPROMISE.

The Public Utilities Commission, in
IT'S dispute with the Potomac Electric
Power Co., stands In the advantageous
position of having won its first battle
or a satisfactory portion Of it-in
the District Supreme Court, which
affirmed its authority to crd:r rate re-
ductions regardless Of the old consent
decree and granted that the rates
should be lower than those establish
ed by that decree, even If not so low as
those ordered by the commission. In
his letter to the commission yesterday
President Ham Of the Potomac Electric
Power Co. suggests, in effect, that In
stead Of fighting through to a finish in
the Court Of Appeals, TO which the case
was appealed by the power company,
both parties shake hands and make up
and resume annual rate fixing under a
modified consent decree. The new
consent decree rate-1xing formula
would fix rates. roughly speaking, half
way between what the District ST.
preme Court s&id they might be, the
low point, and what the old consent
decree said they should be, the high
point. That Is the formula by which
rates fer the last year ware fixed, and
Is the formula by which the Public
Utilities Commission, In a recent letter
to the power company. suggested they
be fixed for the current y;ar,
The company would gain, through
this compromise, the re-establishment
Of the consent decree for an indefinite
time. 1t would be able to look for
ward, each year. to q definite method
of rate-fixing. 1t would also profit by
the fact that the rates In the revived
consent decree would not be as low as
those which the Supreme Court has
said the Public Utilities Commission
might equitably order, and which would
be ordered If the Court of Appeals up
held the lower court.
The public would gain, Immediately,
another reduction in rates. The public
would also gain the advantage Of
definite knowledge that. provided the
company continued to make money as
1t has done In the past, rates would
be reduced each year. The public, at
the same time, would lose the possibil-
ity that the District Supreme Courts
decision win be upheld and even lower
rates established than would be estab-
hshed under q revived consent decree.
The Public Utilities Commission
would win o part Of its fight for lower
electric rates, but would lose the oppor-
tunity Of ordering even lower rates.
It would apparently have won its point
that 1t has the authority to abrogate
the consent decree whenever it chooses,
although the terms Of the new consent
decree might in some respect alter this
authority.
In short, II the electric company's
proposal is accepted, there will be re-
established the consent decree as an in
strunient for automatic rate reduction,
eliminating tedious court fights and pro-
ducing an immediate reduction in rates.
II the electric company's proposal is
declined there will apparently be no
rate reduction until the Court Of Ap-
peals hands down Its decision, which
may not be for several months. If that
appeal should favor the commission
there will be q greater reduction Of
rates than under the immediate re-
Nyal Of the consent decree.
The Public Utilities Commission has
the choice between immediate peace
with immediate rate reductions and
continued litigation with the possibility
that there will be lower rates. The
company has a club in the form of
power TO appeal to the courts on every
order and tie up execution Of the
orders; the Utilities Commission has a
club In the form of its recent court
victory. 1t Is question Of putting the
clubs aside or going at each other again
nip and tuck. The commission should
decide its course in the light Of what
"a best for the interests of the public
--%a@@-@---
Many suggestions for cabinet slate
are being made, but all of them at
xnrAaAy.f ara xo faint O q In ha siixcer1f il,Ie