Evening star., 1937-01-26
LIGHT COST SLASH
|SEXPECTED TODAY
Utilities Commission Will
Order $500, 900 Cut by
Power Company.

Power Company.
A decision Of the Public Utilities
Commission. probably Forthcoming to-
day. will order q half-million dollar
reduction in local electric light bills
this year, an amount that the Potomac
Electric Power Co. will divide about
equally between residential and com.
mercial consumers.
The anticipated aggregate reduc-
ton, while the largest in recent years,
will mean a monthly cut, however,
Of only about IS cents in the bill Of
the average citizen. based on an esti-
mated average consumption Of rs kilo-
watt hours.
William NICK. Clayton created a
furry at the close of the hearings
late yesterday when he demanded that.
in view Of the 'impregnable financial
position Of the company" that the
Utilities Commission should make an
additional reduction Of $3.50 900 which,
he asserted, would give consumers a
fair break" Clayton, representing
the Public Utilities Committee of the
Federation of Citizens Associations,
contended the net return should be
fixed this year at 6 per cent under the
sliding-Scale arrangement for the de-
termination Of rate adjustments. This
would mean q reduction of one-half
Of per cent, with an equivalent in
crease in the total available for rate
reduction.
Protest From Company.
The commission, however. was not
expected to consider Clayton's plea
in determining the forthcoming reduc-
ton. 1t brought vigorous protest
from company officials.
Financial statements prepared by
the Pepco Co. and the commission.
computing the net amount avail
able for return to consumers, were in
virtual agreement. The commission
fixed the sum at $512. .491 SO and the
Pepco estimate was $504, ,021.19 on the
agreed valuation. Either of these flg-
ures or a compromise between them
will be retained by the Utilities Com
mission.
The new rates proposed by the COM
pany, showing the distribution Of the
reduction between the various classes
Of consumers, involved few changes.
Small commercial users, however,
would benefit more than private con-
sumerS.
Under the new rates for city resi-
Dental users, the citizen using 200
kilowatt hours would be billed for
$3.50, whereas under existing rates he
would be charged $3.50. The most any
resident would get under this arrange
ment therefore Is a Accent reduction
per month. According to the records
the average household uses only rs
kilowatt hours per month, so the bill
would be reduced by about IS cents.
141,254 HousehoIders Affected.
The total reduction Of $255,702 pro-
posed by the company in schedule A
would affect 14l,254 household GUS
toners.
Residential users are now charged
SO cents for the first SO kilowatt
hours. This rate would continue. For
the next so hlowatt hours the charge
Is 20 cents, which would be reduced
to % cents. The next 100 kilowatt
hours involves q present charge of
1.9 cents and this would be reduced to
l.S cents. There is no change in the
present rate Of Is cents for over 200
kilowatt hours.
Under schedule D, for small COM
mercial users, the most any one will
receive in the way of a reduction is
estimated at $3.50 per month in the
bill rendered. The total of $2l7,791
would be spread between 23,300 Gus
toners. A firm billed now for $ll8.80
for the first $500 Elowatt hours would
be billed $ll550 for 1900 kilowatt
hours.
Further reductions OF $3l,1s9. to
make up the total Of $504.68 proposed
by the Pepco Co. would be spread
chiefly among various classes Of in
dustrial users. Included, however, are
1857 rural consumers who would
benefit to the extent Of $4,450.
Financial Condition Cited.
As the one-day hearing was about
to adjourn peacefully, Clayton in
jected his demand that the Utilities
Commission take into consideration
the "impregnable" financial condition
Of the Pepco Co. in determining the
reduction for this year. He had
earlier protested that the approximate
$70,000,000 valuation base fixed in
1924 had been determined behind
closed doors"
Clayton cited that the company's
surplus in 1896 had reached $50, ,7S1,-
$50 and that the rate of return under
the sliding scale agreement has aver
aged S.91 per cent on this valuation
during the period from 1925 to the
present year, when it was computed
at 1888 per cent by the commission
yesterday.
He claimed the company was pay
ing 81 per cent interest on its bond
issues Of $15,000,0 900, which had been
allowed by the commission.
Il am here asking for q reduction
from 61a per cent to per cent in
the rate return for this year." Clayton
said. He went into the financial status
Of the power company. claiming, how
ever. that he was not criticizing its
remarkably prosperous condition"
6 Per Cent Held Ample.
"Six per cent Is an ample rate of
return, however, for a company that
has $30,000,000 in reserve" he added.
IT am merely asking that the COM