Evening star., 1938-08-03
CUT IS SDEMANDED .
|ND.C. GASPR0F|T. .
BY CIVIC COUNSEL
Clayton Seeks Lowering of
Basic Rate of Return
From 61E2 to 6 Pct.
LITTLE CHANGE IN COST ,
TO USERS is SEEN NOW
Utility Commission Hearings
Indicate Maximum of $53,117 =
for Reducing Bills.

A demand that the basic rate of re-
turn allowed the Washington Gas
Light Co. under its sliding scale plan
be reduced from 81 per cent to per
cent, on the agreed valuation of the
company, was made today by William
NICK. Clayton. counsel for the Fedora
ton Of Citizens Associations, as the
Public Utilities Commission concluded
its hearing on tbs years adjustment
of gas rates.
Earlier testimony at the hearing by
B. M. Bachman, chief accountant to
the commission, indicated that with
out any change in the basic rate Of
return. the amount available for rate
reduction on September ! would be
between 1880 and s53.117. depends
ing on the decision on disputed items.
This would mean that little or no re-
duction in rates would be available
for the average consumer
Should the commission lower the
basic rate of return to per cent. it
would involve $120 900 Of profits of the
company, OF which half, or $60.000,
SouiSA NC iSLio dFhlldplC loi ldUC
ton. to be added to the minimum or
maximum figures already before the
commission.
Phone Firm Allowed 6 Per Cent.
Mr.. Clayton based his proposal on
the fact the Chesapeake e. Potomac
Telephone Co., now is allowed return
Of per cent on its valuation, al
though the c. & P. does not have a
sliding scale plan such as operates for
the annual adjustment of rates of the
gas company.
Under the sliding scale plan figures
are taken from the company book as
Of each June 80, and a hearing is
held to determine what changes in
rates. II any, should be ordered, to
be effective after September /.
Mr.. Bachman testified that profits
Of the company during the past fiscal
year amounted to sl,580,859 The
valuation of the company properties
for rate-making purposes, he said,
was $23 155 ,995 as of June 30. The
profits of the company. therefore. were
figured to be 6827 per cent of this
base rate, indicating some excess
profit"
Excess Is S75,720.
The Initial rate Of return allowed
the company under the sliding scale
plan is $50 per cent. or s1,505, 1879,
indicating the excess amounted to
$75,720. Under the sliding scale plan.
a sum equal to one-half of this excess"
is considered available for rate reduce
tions for the new year-or S37,8
There are number of accounting
items in dispute at the hearing. A
matter Of several hundred dollars is
involved in ALLEGATIONS of portion Of
the working capital fund held for
maintenance of proper gas pressures.
Also during the past year the commis-
sion forbade the gas company to grant
concessions to house builders for in
stalling so-called "gas" kitchens, and
the sum charged for this promotional
enort last year was calculated at
$22,8l8. Should the commission order
half OF such sum allocated for the
new year for rate reductions, that
would increase the total available by
$l1, ,409.
$1,000 in Dispute.
Then there is the sum Of about
$1,000 in dispute over ALLEGATION to
services beyond the District of the
treatment Of "off-peak" sales of gas to
the Alexandria Gas Co.-which Is
owned by the trust which controls the
Washington Gas Light Co.
In addition to these items, there Is
. sum Of $3.137.82 which was found
available for rate reductions last year,
which was not distributed in rate re-
ductions because the sum was SO
infinitesimal in comparison with the
thousands of gas consumers, If divided
among them.
The commission was represented by
Lloyd Harrison of the corporation
counsel's Office, and company counsel
was E. Barrett Prettyman, former
corporation counsel, now in private
practice. William NICK. Clayton ap-
peared for the Federation of Citizens
Associations. The case was heard by
Richmond B. Keech, commission vice
chairman. and Col. Dan /. Sultan,
| Engineer Commissioner.