Evening star., 1934-05-16

rates. All but seven States now have
regulatory bodies. Even in States
where there is no State authority, the
Federal Commission has no jurisdic-
ton over rates if the Legislature has
delegated such authority to the
municipal governing bodies of the
State. The practical result is that
as TO intraState rates the Federal
Commission has only the most limited
making power.
AS to rates on electricity trans
mitted across State lines the jurisdic-
ton of the commission is also limited,
and can only be exercised if the ad-
joining States which are involved In
the interstate transmission Of elec-
tricity are unable to agree, through
their respective State regulatory bod
les, in the regulation of such interstate
traffic.
The same general principles apply
to the regulation of securities issued
by the commissions licensee COM
panies. The Federal Commissions
supervisory power over securities ap-
plies to its licensees in only 18 States
which have not vested such power in
a State commission.
One of the most fundamentally i'm
portant powers vested in the commits
sion is that of making comprehen-
sive investigation of the water
power resources of the Nation and
the preparation of a plan and pro-
gram for their economical develop
ment, and the relation of such fu-
ture development to other industries
and to our general social and eco
nomic advancement. This function
has not heretofore been exercised, and
in August of 1888 President Roosevelt,
by executive order, directed the Fed
eral Power Commission to make a
national power survey and plan of
development, and provided funds for
this purpose. The commission is now
actively engaged in this work, and
substantial progress has already been
made by the staff of experts engaged
for this special task.
Waste and Overdevelopment.
Heretofore the development Of our
water-power resources has not been
in accordance with any co-ordinated
plan, but instead has been largely con-
trolled and projected by various power
industry groups in the development OF
particular water-power sites. The lack
of accurate knowledge of our water
power resources and the absence of a
national plan for their economical de-
velopment to meet the present and
future requirements Of the various
sections of our country has resulted
in waste of these resources in some
sections and an overdevelopment in
other sections.
In the making of this national
power survey the Federal Commission
has set out to obtain the essential
facts relative to our power resources,
the cost of their development, their
capacity. the market, present and fu-
ture, and the effects of such develop
ments upon industry, commerce and
agriculture and the needs and uses for
electricity in the homes in cities,
towns, villages and the countryside.
We are not undertaking to prove
any particular theory or to establish
any preconceived idea or plan. We
are making a scientific search for all
of the elements involved. We are
hewing to the line of facts and letting
the chips fall where they will. We
have invited and have the assurance
of the cooperation of leaders of the
privately owned power interests and
likewise of the publicly owned power
plants. 1t is believed that with their
cooperation and through the inde-
pendent efforts of our own staff we
will be able to assemble all of the es-
sential information necessary to an
understanding of our national power
resources and their comprehensive and
co-ordinated plan for future develop
ment.
Distribution Costs Studied.
Under a Senate resolution intro
duced by Senator CoStigan of Colo
RADIO, the commission is also engaged
in an investigation and study Of the
cost of distribution of electricity. This
is an important and necessary part OF
any national power survey. The power
industry and State and Federal OFF,
cials now know what it costs to gen.
crate electricity in any particular
plant and to transmit it to the sub
station, but it is safe to say that what
it costs to distribute electricity over
the network of wires to the meter OF
the consumer is not accurately known.
Knowing as we do the generating and
transmission costs under given condi-
tions, If to that is added a sub
stantially accurate knowledge OF the
cost of distribution, we would then
know three of the most important
elements entering into the cost Of
electricity.
To round out and complete this ma
tional power program, the Congress
recently passed a joint resolution, In
troduced in the Senate by Senator
Norris of Nebraska and in the House
by Representative Rankin of Missis-
sippi, authorizing the Federal Power
Commission to assemble and analyze
the electric rates prevailing in every
city, town, hamlet and rural commu-
nifty in America. This is an under
taking of the greatest Importance to
both the electric light and power in
dustry and to all who use electricity.
For as the result of this investigation
and analysis of rates the regulatory
commissions and the governing bodies
of municipalities and even the indi-
vidual citizen will be able to make in
telligent comparisons of the rates be-
ing paid in any particular community
with the rates prevailing in other
communities similarly situated.
1t may surprise you to learn that
there is no such information now
available. The only published compl-
lation of rates is that in the Ratebook
of the Edison Electric Institute, an
association maintained by the pri-
vately owned utility companies. But
this Ratebook gives the electric rates
only for cities Of more than 10000
population. 1t covers, therefore, only
8 per cent of the 15,500 communities
which receive electric service, and
omits entirely the rates charged In