Evening star., 1938-02-03
new PEPCO RATE
TO SAVE $4,000
FORD. c. PATRONS
Change Will Mean Reduction
of Fl Cents on Bill of
Average Consumer.
SCHEDULE IS SO CENTS
FOR FIRST so KlLOWATTS
Commission and Company Officials
Directed to Study Effect
During Year.
BY DON S. WARREN.

BY DON S. WARREN.
New electric rates, which will be
applied to all bills rendered hereafter
this year by the Potomac Electric
Power Co., providing for total saving
to customers of $4,000, were ordered
today by the Public Utilities Com
mission.
Domestic consumers will enjoy q
rate cut amounting to roughly 80 per
cent Of the total, or $294000; COM
mercial consumers about ~ per cent,
or 1926, 900, and the Federal and Dis
, trict governments, using metered COM
mercial schedules, roughly 20 per cent.
or 3l50,000. All told, therefore, the
commercial rate savings will aggregate
about 81 per cent of the total or some
S476,000.
The changes will mean saving OF
81 cents on the monthly bills OF the
average domestic consumer, according
to calculations made today at the
commission. The cut there is rela-
lively small per month because OF
the large number of domestic con-
sumers. or 147,477 This is based on
q calculation that the average house
holder uses 90 kilowatt hours of power
per month.
II householder used an even 100
kllowatt hours a month, his saving
would be Is cents; If he used $50 kilo-
watt hours, 40 cents a month, and 200
or more kilowatt hours, SIS cents.
. $66, 900 More Than Planned.
In the final decision, the commits
sion directed the company to transfer
to the domestic consumers about $780,
600 more than had been planned by
the company. The commission, how
ever. ordered no change in the first
block of the domestic schedule. Com
pany ofncials insisted that the present
rate for the first block was providing
no more than cost for this service
The savings to domestic consumers
will come from use of more than so
kilowatt hours per month.
The new domestic schedule will be
SO cents for the first SO kilowatt
hours. 1.8 cents for the next so kilo-
watts and is cents for all over 100
kilowatt hours. The present domestic
schedule has four blocks instead Of
three. They are SO cents for the first
80 kilowatt hours, 2.3 cents for the
next so. 18 cents for the next 100
hours and is cents for all over 200
hours. The company had proposed
three-block schedule, with 3.9 cents
for the first so hours. 10 cents for
the next so hours and is cents for
all over ITO hours.
The average consumer. using 90
kilowatts per month, paid 1922 a
month under last years rates, and
under the new schedule it is calcu-
lated that his bill for q month would
be $2.7l.
Study Of Effect Ordered.
The commission announced it had
directed B. M. Bachman, commission
chief accountant. and Fred A. Sager,
commission chief engineer, to make
detailed study this year on the effect
OF the first block rates in the domestic
schedule to determine Just how near
these consumers were carrying their
own service costs. The results will be
used in rate studies next year.
The consumer savings resulted from
production from 6.5 to per cent in
the initial rate Of return allowed the
company under its sliding scale plan
and from excess" profits of the COM
pany in the last year.
Thoro I,oe 11no,,
each year since 1925 when the slid
ing scale plan first was applied. The
greatest rate cut was in 1892, when
,the total cut was 1851 900. The next
highest was in 1881, when it was
Se30,000. The lowest reduction was in
1885 when it amounted to $4,000.
Last year the savings to consumers
wsre figured at $504,000.
: Change Sliding Scale.
In keeping with the reduction OF
the basic rate Of return, the commits
ston changed the sliding-scale plan
itself. Hereafter. If the company's
pfofits range between 6 and 7A per
cent OF the agree valuation or rate
base," sum equal to one-half of
such profits will be considered avail
ALE for consumer rate reductions the
next year. If the profits range from
~ per cent to 8 per cent, 60 per
cant will be considered available for
the consumer rate cuts If the profits
exceed 3 per cent, then a sum equal
tp IS per cent Of the "excess" profits
VII be considered available for rate
cuts. The company, Of course, retains
~ its profits for any one year, re-
eardless of how high Is the percentage
> Of return.
The former sliding scale provided
that the so, so and rs per cent held
available for rate cuts should be ap-
Piled II the company's returns ranged,
respectively, from 81 to 7'4 per cent,
from ia to 81a per cent and then
from 81 per cent upward.
= Commercial Schedule.
The new commercial schedule E,
which Is available for electric service
used Tor general lighting. power, in
a0strial motors, battery charging and
ether commercial purposes, is as fol-
Nws:
:, For the first 80-kilowatt hours in
monthly consumption, 3.S cents per
kilowatt hour; for the next ITO hours,
16 cents per hour; for the next $50
hours. "a cents per hour; for the
next S.l70 hours, ~ cents per hour;
Tor the next 80 1000 hours, Is cents per
hour; for the next 10000. kilowatt
hours, OF cents per hour, and for any
an excess Of 1ss,75o hours, 0.6 cents
per hour.
Z The minimum energy charge 3 IS
cents per. month for each meter in
stalled, but not less than $1.50 for the
period during which the service is fur
qished. In addition, If the consumer
stses more than $3.50 kilowatt hours,
ne VIII be billed for demand charge
epounting to - per hlowatt hour for
the farst 73.S ktlowatts Of eonsumesI