Evening star., 1938-01-27
POWER RATE CUT
MAY AID BUSINESS
CONCERNS MOSTLY
1920 of Reduction to Go to
Commercial Users if Plan
Is Approved.
REVISION OF SCHEDULES
IS SUBMITTED BY PEPCO
Commission Officials Have Until
Monday for Final Decision
on Slash in Charges.

Approximately 80 per cent Of the
consumer rate reduction Of $4,000
IN power rates this year will go to
domestic consumers and roughly 10 per
cent to commercial consumers, includ.
Ing the Federal and District govern.
ments, If the Public Utilities Commits
sion approves revision of schedules
proposed today by the Potomac Elec.
trio Power Co.
Ofhcials OF the commission said
they had until Monday to reach
nnal decision on the rate cut, which
results from "excess" profits of the
company in the last year and the
commissions order for a reduction
from 6.5 to 6 per cent in the initial
rate of return to be allowed the company
hereafter under its sliding scale plan
for annual adjustment of power rates.
However, it appeared possible the
problem of how the aggregate rate re-
duction shall be apportioned would be
determined by the commission before
the end of this week.
The commission determined late
yesterday that the rate reduction
should amount to s769,634. but the
company overshot this mark a bit in
f1gurlng possible rate adjustments.
which 1t figured would reach S77O.C30.
New Schedule "A" Proposed.
The company proposed a new sched.
ule "A for domestic consumers, which
it figured would amount to s23o,el7.
TO be applied to the bills of 147477
customers. The company proposed
no change in the minimum charge
for these customers of rs cents per
month but did propose some changes
in the bills for customers using more
than 30 kiloWatt-hours of power per
month.
The company proposed that the new
schedule for domestic consumers
would be: For the first so kilowatt-
hours, 3.9 cents; for the next go kilo-
Watt-hours, 1.9 cents, and for all over
lilo kilowatt-hours rate of is cents.
The present schedule "A" is: For the
first so kilowatt-hours, 3.9 cents; for
the next so kilowatt hours, 2.3 cents:
Tor the next 100 kilowatt -hours, 18
cents. and for all over 200 kilovatt-
hours, is cents.
The effect Of this change, observers
said. would mean that domestic con-
sumers who use ITO kilowatt hours at
price of 1928 per month in the flu
ture would have to pay So SO, or a say
ing OF 29 cents, and that those who
use 200 kilowatt hours per month, or
more, now paying $3.50, would be
charged S4.34 month, or a saving of
56 cents month.
Schedule Shift Predicted.
A study of the companys proposed
new schedule showed that the conpanv
believed that with the prouose1
changes in the commercial schedules
most OF the customers now on schedu!a
d. would adopt schedule "E." 1t was
calculated that s539,413 to the to.al
saving in bills would 60 to commercja,
customers, including the Federal and
District Governments.
The company proposed a new sched-
ule "E," which would be as follows.
For the first 80 kilowatt hours "a
cents; for the next 10 kilowatt hours.
rs cents: for the next $500 kilowatt
hours, 90 cents; for the next 80, 900
Nlowatt hours 1.3 cents; for the next
10000 kilowatt hours. or cents, and
for all over 188,750 kilowatt hours, 06
cents.
The present schedule "E" rates are
for the first $3.50 kilowatt hours, 8
cents; for the next 5000 kilowatt
hours, is cents: for the next 25.ooo
kilowatt hours, IL cents: for the next
100000 kilowatt hours, OF cents. and
for all over 188,750 kilowatt hours, 0.6
cents.
Commissions Action Expected.
The action of the commission in
ordering reduction in the basic rate
of return. to per cent was fully ex-
pected. Last year local consumers
were saved s504,000 In their light bills.
Every year since December, 1924, when
the sliding scale" was instituted, 1t
has served to slice rates to the con-
sumer. The basic rate Of return to
the company in the 1924 order was
7l2 per cent.
The rates have declined as con-
sumption increased Of1cials said the
total consumption last year was 72O,-
500,137 kilowatt hours. This Is an
increase Of about 8 per cent over the
667,068,6l0 kilowatt hours for 1896.
That figure, In turn. was per cent
in excess Of the 1885 consumption Of
sos, 1863. AS kilowatt hours.
Revenue Of the company increased,
on the other hand, from $l3,0s2,415
for 1885 to $l4,03l,18 for 1886, and
to $l4,663,381 for 1897.
Savings Data Listed.
Statistics prepared by the commits.
sion show that the Washington resi-.
dental and commercial user OF elec.
tricity has benefited from reductions
during the past three years. The av-
erage residential user paid light bill
of 1888 In 1885. 1881 In 1886 and
s32.69 in 1887. The cost per kilowatt
hour was 1888 cents, BIS cents and
2.96 cents. respectively.
The average cost to commercial Gus
toners in 1885 was $233.08, $237.09 in
1886 and $220.67 in 1887. The cost
per kilowatt hour was reduced from
280 cents In 1885 to 2.63 cents IN
1887 for commercial consumers.
The foregoing rates, it was said. ara
considerably lower than for the Ma.
ton.
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