Evening star., 1936-08-10
WESTINGHOUSE
USERSDUE T0GET
$5O,0DOCOSTSCUT
Reduction Is Expected to Be
Made Effective on Sep
tember |.
FIRMS EXCESS PROFITS
SHOWN TO COMMISSION
Figures of $94,253 and $100,s43
Are Offered at Opening Of
Public Hearing.

Washington gas consumers may ex-
pect total cut in costs. effective Sep
tember /, of between S47,126 and
$50,24l, according to data presented
to the Public Utilities Commission
today by its chief accountant, B. M.
Bachman
The calculations as to the excess
profits made by the Washington and
Georgetown Gas Light Cos. were Of
fered at the opening of a public hear
ing on gas rates, the first since the
adoption last December of the slid
Ing scale plan for annual adjustment
OF the charges of the concern.
Two different figures as to Bach
mans estimates of the excess profits
over and above the basic net return
of 612 per cent were offered because
Of question of how much should be
allowed for additions and improve
ments to the plants of the companies
since June 80, 1885.
Rate Base Figures Differ.
Hinman D. Folsom, commission
counsel, explained there was a diff
ference of nearly 100000 in calcu-
lations of the rate base of the COM
panies as of June 80, 1886, which in
volved principles to be settled by the
commission.
Bachman, the first witness called
by Folsom, presented statistics to
show that under one method of CAL
culating, the rate base as of June 30
last would be $21,145,397. On that
basis the excess in returns over the
basic allowance Of 81 per cent, as
allowed in the sliding-scale agree
ment. would be s94,253. Under the
sliding-scale plan, half of the excess
profits between 61a and 71a per cent
on an agreed rate base would be con-
sidered available for future rate re-
duction, or $47.126, in this instance.
BY different method of calculating
additions and betterments during the
past year, Bachman said. the rate
base as of June 80 last would be found
to be s21 ,O49,546.
If that Is accepted as the agreed
rate base. then the excess profits over
the allowed 61a per cent would be
$lo0,483. half of which, would be
available for rate reduction, or
$50,241.
Officials Of the commissions staff
previously had anticipated that the
amount available for rate reductions
in the new year would be small, pri-
marily because there was a net rate
cut totaling s3o5, 900 last December,
when the sliding scale plan was put
into effect. At that time some S176,-
600 of the total net cut was dis
tributed among domestic consumers
not using large quantities of gas for
house heating.
4 Cents Cut Per Consumer.
Unof1icially, it was then calculated
the average domestic consumer would
find a reduction of about cents per
month in his bills. Since the figures
Of the commissions experts indicate
the total reduction available Deem
Der may not be greater than about
$4,000, the anticipated cut In the
monthly bills Of the average domestic
consumer will be exceedingly small,
even If all the cut is applied to domes-
tic consumers, which is not expected.
Folsom was expected to call as his
second witness Harold D. Scantlin, a
deputy District assessor Another
witness was to be J. J. Dyer, a field
auditor of the Maryland Public Serv-
ice Commission. The company case
will be presented by Stoddard M.
Stevens, jr., and John Bruton of the
law firm of Sullivan g. Cromwell,
New York counsel for the ownership
Of the gas companies.