Evening star., 1941-01-30
$338,000 Power
Rate Cut Case
Is Reopened
Commission Lacks
Essential Data;
Hearing Called

nSOIln9 SuIeu
IN . sudden new development
the Public Utilities Commission to-
day reopened the case of the inn
pending $338,0O0 reduction in tn,
Potomac Electric Power Co. rate!
and called for a special hearing
at pm. tomorrow.
The commissions announcement
said the company had failed t.
supply certain essential Information
which the commission had requested
Members OF the commissions staff
indicated they had found" that
the company's proposed new power
rate schedules to carry the ordered
1898, 900 cut into effect had made
an adjustment for rates actually
charged for January of last year
They said the commission had
directed the company to submit
new schedules without this adjust
n1ert, adding that the company
could submit. a second series OF
schedules with the adjustment il
1t wished, but that the company
submitted only the latter.
$4,000 Involved.
1t is said that approximately $42.-
600 is involved in the issue over
accounting for revenues from rates
charged last January. Public hear
ings are held each January on
annual adjustment of power rates,
which normally go into effect Feb
ruary l. At the time of the hear
ings, the commission does not have
available final figures on revenues
and expenses for January. At the
original hearing this year the
company raised an issue on the
point that an adjustment should
be made for January receipts be-
cause rates for the rest of the year
had been reduced.
Commission Chairman Riley z.
Egen had said he hoped the agency
would be able to act finally on the
issue within a day or two since the
reduced rates are intended to be
applied to all bills rendered by the
company after Saturday.
OF the total rate cut, the company
allocated ss1,s55 to domestic con-
sumers, using Residential Schedule
A. Commission experts figured this
would mean a reduction of about
IS cents on the average monthly
bill, somewhat less than was the
case last year.
Based on PERCENTAGE Used.
The division of the melon" was
based on the percentage of current
used by residential and commercial
users. Aside from the $81,855 allo-
Gated to Schedule A, the company
divided the remainder between
various classes of commercial con-
s,lmers.
Asked whether the filing Of the
proposed new rate schedules in re-
GpOnse to the commissions order
meant that the question Of litiga-
taon was passed, Alfred G. Neal.
president of Pepco, said he saw
little possibility of a court fight II
the commission adopted the pro-
posed new rate schedule which the
company submitted. He added that
II changes were made or if the COM
mission applied interpretations not
agreeable to the company then the
company would have to determine
whether to go to court.
fication, the rate for the first SO
kilowatt hours would be 800 cents
per kilowatt hour; for the next 90
kilowatt hours, Its cents, and for
the excess over 100 kilOWatt hours,
Is cents. The only change in this
from the present schedule A rates
Is that the initial charge OF 3.9
cents Is for q first block Of 40 kilo-
watt hours. The minimum charge
would remain at IS cents a month.
Suburban Rates Reduced.
The company said a rate reduc-
ton Of 1874 was allocated to sub
urban schedule A and rural schedule
A.
A new commercial schedule L
providing q rate cut aggregating
44,180 was proposed as follows: For
the first $4,000 kilowatt hours, .s5
cents per kilowatt hour; for the
next 100000 kilowatt hours, 6 cents
and for the excess over 100000,
5 cents. There would be no change
In either the demand or minimum
charges. The present schedule L
rates are: For the first $1,000
kilowatt hours, IL cents; for the
next $4,000 kilowatt hours, g cents;
for the next 100000 kilowatt hours,
6 cents; for the excess over 10000
kilowatt hours, 5 cents.
A new commercial schedule E rate
designed to effect a rate cut of $780,
1913 was proposed by the company as
follows: For the first go kiloWatt
hours, 3.8 cents per kilowatt hour;
for the next 220 kilowatt hours, %
cents; for the next 1,720 kilowatt
hours, 20 cents; for the next $4,000
kilowatt hours, IL cents; for the
next $4,000 kilowatt hours, Z cents,
and for the excess over 205 900 kilo-
watt hours, 6 cents.
Present E Schedules.
The present commercial schedule
Z is: For the first 70 kilowatt hours,
80 cents per kilowatt hour; for the
next $50 kilowatt hours, % cents;
for the next 1850 kilowatt hours,
40 cents; for the next $4,000 kilo-
watt hours, 10 cents; for the next
q, 900 kilowatt hours, IL cents: for
the next 10000 kilowatt hours, Z
cents, and for the excess over 200,-
900 kilowatt hours, 6 cents.
In this schedule there was but one
change in the demand charge.
Whereas the minimum for the ex-
cess Of 10 kilowatts of maximum
demand now is IS cents, the pro-
posed new rate schedule calls for a
minimum, for the first 1870 kilowatts
of maximum demand in excess of
10 kilowattS of 95 cents, and for that
IN excess Of 200 kilowatts of maxi
mum demand 85 cents.
The company allocated s5,5s1 for