Evening star., 1940-01-25
Decision Near
On Amount Of
Power RateCut
Union Leader Demands
Slash in Bosic Figure
For Compony's Return

Members of the Public Utilities
Commission were expected to reach
a decision today or tomorrow on the
amount of reduction in consumer
rates Of the Potomac Electric Power
Co. to be effective in the next II
months, after ruling on a number
of contested points in the operation
of the companys sliding-scale plan.
The commission had before it
today demands from a union labor
spokesman that the basic rate of
return allowed the power company
should be reduced from 6 to per
cent on the agreed valuation figure,
and an equally determined declara-
ton, from a spokesman for the
Building Owners and Managers
Association that all of the rate
cut should be given to commercial
consumers and none to domestic
consumers.
In the midst of these contentious,
the commission considered a de-
mand by William NICK. Clayton,
veteran chairman of the Public
Utilities Committee of the Fedora
ton of Citizens Associations, that
the commission should order a
real" valuation investigation for
the company, contending that past
valuations were based on fictitious"
values and were arrived at behind
closed DOORS"
1924 Consent Decree Cited.
Mr.. Clayton's reference was to the
proceedings that led to the consent
decree by District Court late in
1924 for settlement of the rate case
under which more than $4,000, 900
had been impounded in returns to
the power company. A sliding
scale plan resulted from the long
battle over that rate case.
Mr.. Clayton, in his statement yes
terday, reiterated previous demands
that the commission order a real
investigation to determine the value
of properties of the power company,
arguing that since 1924 the agreed"
valuation of the company had in
creased from some $32,000,000 to
more than $80,000,0OO. A. G. Neal,
president of the company, replied
that local power rates were excep-
tionally low in comparison with
those of comparable cities.
Earlier yesterday Rufus S. Lusk,
secretary of the District Building
Owners and Managers Association,
had insisted that the entire amount
of the prospective rate cut should be
allocated to commercial consumers,
arguing that thousands Of domestic
consumers row can obtain power at
price lower than the cost of
service.
Demands Cut in Return.
In reply to this a demand was
filed by Sidney r. Katz of the local
Industrial Union Council of the
c. I. O., that the basic rate of return
allowed the company should be re-
duced to S per cent and that a
greater portion of the rate cut
should be allocated to domestic con-
Sumers.
He argued that during the period
from 1882 to 1897 there had been
no reduction in the rate for the first
so kilowatts in the residential "A"
schedule.
Last year the commission ordered
rate cut totaling $394,085, of
which $141,500 went to domestic
consumers and $685. 500 to CONNER
cial users.
How much this years rate cut
will be depends on decision by the
commission on an accounting prob
lem, which is in dispute. According
to George H. Wilson, chief account
ant of the commissions staff, the
rate cut should be $575,O29, whereas
the company maintains the cut
should be no more than $454.766.