Evening star., 1935-08-11
GAS RATE PARLEY
SOUGHT BY FIRMS
Firms Ask Utilities Commits.
sion to Discuss Sliding
Scale Method.

Discussion of the form of pro-
posed sliding scale or other new ar
langement for annual correction of
the rates of the Washington and
Georgetown Gas Light Cos. may be
started this week.
The Public Utilities Commission
will act tomorrow on a request sub
mitted by the companies yesterday
for a conference on the necessary
elements" of sliding scale plan, sug-
gested originally by Peoples Counsel
William A. Roberts.
The commission is expected to
frame reply to the company re-
quest and make possible the holding
of negotiations, without, however,
committing itself yet on any major
point.
In response to the move by the
peoples counsel, the commission de-
clared proposal for new rate-mak-
ing procedure must come from the
companies. If this be done, it said,
1t would be the duty of the commits
sion under law to study and act on
the petition.
Outline to be Submitted.
The companies are expected to be
required to submit later at least the
outline or framework of proposed
new system. Figures and other de-
tails would be inserted later when
negotiations reached an advanced
stage.
On what basis there could be dis
cuSSionS between the commission, COM
panies and peoples counsel already
has been considered at an informal
meeting between Stoddard M. Stevens
jr., and John Bruton, counsel. and
Marcy L. Sperry, president of the gas
concerns; Riley E. Elgen, commission
chairman, and Roberts.
1t is understood there was informal
agreement that if proposal was SUBJ
mitted and considered, none of the
figures used in the discuss, ,ons could
be invoked in any possible future court
case.
The companies wrote the commits
sion yesterday:
1T is the desire of the Washing
ton and Georgetown Gas Light Cos
to establish, if possible, a sliding scale
arrangement or other similar adjust
ment with respect to our rates as Is
contemplated in paragraph IS of the
public utilities act, to facilitate the
termination of the pending valuation
and rate cases on a fair and rea-
sonable basis
Suggest Discussions.
I'VE therefore respectfully suggest
that discussions be had between rep
resentatives of the commission, peo-
pies counsel and representatives OF
the companies respecting the neces-
sary elements of such an lagrange
ment, with the object of presenting
the same for consideration of the COM
mission at an early date"
This statement, by President Sperry,
was interpreted unofficially as COM
plying technically though possibly
not fully with the commissions stand
that proposal be submitted by the
company.
The commission, it was said, is con-
sidering also other methods of annual
rate adjustment. The plan of having
a continuous inventory of properties,
which could be imposed on a sliding
scale plan, is among these.
A sliding-scale plan was adopted
with court consent for the Potomac
Electric Power Co. in 1925. Officials
say there are some faults in that plan
although its operation has been gener-
ally pleasing.
Roberts proposal was designed to
Lalt the gas valuation and rate cases,
on which the company is said to have
spent more than 100000. A major
idea in Roberts cryptic proposal was
that there be agreement by the COM
pany to effect Immediately cut in
1ates amounting to $4,000