The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1938-12-15
iva YARDSTICK
CALLED SOUND
BY WITNESS
Power Rate Only Half
Of Private Firms

u.NS) TWAS elect trio rate
yardstick "offers sound standard
for private power companies in the
region" Leland Odds, executive
secretary of the New York State
Power Authority, told the iva
congressional investigating com
mittee today.
A "star" witness for iva, Odds
testimony was given in an effort
to counterfeit the expressed opin'
ion of executives of private util-
tiles, who charged that TWAS yard
stick is "unsound" and designed
to mislead Federal authorities.
RECORDS CITED
Odds said he based his conclu-
sions on the records of is munich
palities and IA cooperative associa-
lions purchasing iva wholesale
power in the fiscal year ended
June 80, 1888.
"These records" he added,
Completely refute the claim
that this yardstick reflects hid
den subsidies :"
He predicted that when iva
power is fully marketed through
q combination of resale agencies,
"the present rate yardstick will be
found higher than necessary for
economic and efficient private OPP
Grafton"
He added that "the wholesale
power supply segment of the re-
tail rate yardstick, as shown in
the average price paid by the mu-
nicipal and cooperative distribu-
ton systems for iva power sup
ply is ample to cover the reason
able costs of private power sup
ply in the region"
Olds stated further his study
showed that IVA resale agencies
sold $685. ,528 kilowatt-hourS in the
year at an average rate Of IA
cents per kilowatt-hour, while the
average rate by private utilities
for the United st: ties as a whole
was 81 cents, or double the av-
erage iva rate.
FAIL AT REGULATION
Replying to the testimony Of
private utility heads, Odds said
local and State utility regulatory
bodies are unable to insure the
public against unfair" rates, and
violations Of public trusts.
I'm general" he added, "the
testimony before this investiga~
tory body revealed that private
utility corporations had sue
ceeded in thwarting or evading
the efforts of even the most
active public service commits
SionS.
1.-THE private power interests
contend that the public interest
In electricity can be safely left
to the protection Of the various
State regularity bodies. usually
termed service commissions.
IN considering this point, 1t
should be noted that State regu-
lation had it's rise in the pre-
war period when electric power
was essentially community en-
terprise. The entire era of in
terconnection, presided over by
far-flung holding companies,
was still a decade ahead"
Odds said Commonwealth and
Southern Corporation, a strong
competitor of the Governments
yardstick program, lis very def
nitely a highcoSt competitor which
must seriouly consider whether its
investment is worth as much in
terms of economic service as it
originally thought"
GOVERNMENT RESPONSIBLE
He added the Commonwealth
and Southern system carries a
book value for its assets of ap-
proximately $1O4,500,000 Gin ex-
cess of what they would have
been worth if constructed at the
unit cost based on averages for
100 electrical utilities, represent
ing approximately two-thirdS OF
the power industry"
In view of his contentious, Odds
said "the Government has a re-
sponsibility to enable consumers
of electricity in the Tennessee
Valley region to purchase power
at the rates which, could be estab-
liShed by q loW-coSt connection. "