Evening star., 1935-01-29
PEPCO VALUATION
BEING CONSIDERED
Public Utilities Commission
Seeks to Determine
Equitable Profit.

Valuation Of the entire properties
of the Potomac Electric Power Co..
with a view to determining If the z
per cent profit allowable under the
present sliding scale is equitable, is
under consideration by the Public
Utilities Commission on a motion
made yesterday before the rate body
by William NICK. Clayton, chairman
of the Utilities Committee Of the Fed
Grafton of Citizens Associations.
Clayton and William c. Mcclellan,
president of the power company. en-
tered into a heated discussion of the
company's rates early in the hearing.
Clayton contended that the company's
rates are excessive, in view of the
cheap money available and the earn
ing power of other companies Of like
investment.
To Determine Rates.
The utility commission has before
1t the question of whether the rates
for the ensuing year will be based on
the figures submitted by the COM
pany or upon those given by B. M.
Bachman, chief auditor Of the COM
mission. If the schedule OF the COM
pany is accepted. the rates in the Dis
trict and nearby Maryland and Vir-
ginia will be reduced IL per cent.
The figures submitted in the sched-
ule by Bachman would bring about
a slightly greater reduction. The
commission is expected to decide to-
morrow in an effort to put the new
rates into effect by February /, it
was said.
The greatest reduction of $73.293
would be brought about in the do
mestic schedule, affecting 130.655
consumers. particularly the second
block Of that group.
The class ID" consumers, COM
posed of consumers in the District
for general lighting. power and in
dividual motors for commercial pur-
poses, would save S57,0l8 under the
new schedule. A saving of $3.759
would be brought about in the rural
domestic group. while the class &C"
group. made up of apartment house
and office building consumers for mo-
tor and lighting purposes, would save
$4,249.
The company,s figures set the re-
ductable for 1885 at S139,894, while
the commissions figures run to
$l47,50
William A. Roberts, peoples coun-
sci, objected to the acceptance of
the company's figures as final con-
tending that they should be substan-
tally reduced as to several chargeable
items and increased as to the reduc-
ton in rates. He asked the COM
mission to make a thorough study
OF several of the items in the state
ment on revenues and disbursements
before making its decision.
Himan Folsom, special corporation
counsel, representing Corporation
Counsel E. Barrett Prettyman, an
nounced at the hearing that Andrew
Sangster, a well-known accountant,
has been busy for several months
making a thorough investigation into
the retirement payments by the COM
pany OF the original $4,000. 900 i'm
pounded fund created over a period
OF litigation before the consent decree
by the District Supreme Court by
which the sliding-scale system was
established. with an allowable profit
on investment of per cent.
1t was brought out at the hearing
that the electric company has set
aside per cent of its revenue for
promotion of new business.
Rufus s. LusK, secretary of the
Building and Loan and Managers
Association of the District, filed q pro-
test against classes CO and ID" of
the schedule as discriminatory against
apartment and Office buildings.
Also Files Protest.
Charles j. Rush, secretary of the
Washington Real Estate Board, also
filed a protest against these two
classes on similar grounds.
The Commissioners hearing the
case Of the electric company were
Riley E. Elgen. chairman; Richmond
B. Keech and Lieut.. Col. Dan I. Sui
tan, District Engineer Commissioner
The company was represented
legally by p. A. Bowen and a force of
experts Of the company assisted DR..
Mcclellan in the presentation of
evidence