Evening star., 1942-09-30
PUG Rejects Demand
By 0PA for Reopenine
Of Gas Rates Hearing
Counsel, Members CIosh
Increases Protested
By Citizens Groups

The District Public Utilities
Commission today refused to &C
cede to demands of the Office of
Price Administration for reopen
ing q, of the hearing on the
threatened increase in the rates
OF the Washington Gas Light Co.
This issue was settled by a ma
joritv ruling by the PUG members
with former Chairman Gregory
Hankin dissenting-after the COM
mission heard the views of spokes-
men for the Fort Davis Citizens AS
ISOLATION ana the Washington
League of Women Shoppers, who
protested that because of war con-
ditions there should be no rate in
crease.
Counsel, Members Row.
The session was marked by re-
peated wrangles between company
counsel and Harry r. Booth, repre-
senting Price Administrator Leon
Henderson, and between members
of the PUG itself over the conduct
of the proceedings and the mean
ing Of the current interim order of
the Federal Power Commission in
the Panhandle Eastern Pipline Co.
case.
In reference to the FPC case, Mr..
Booth started to make remarks ap-
parently concerning what he
thought was in the mind of PUG
Chairman James H. Flanagan, and
protests immediately were raised
by Lloyd B. Harrison, PUG coun-
sci, and E. Barrett Prettyman of
company counsel.
Involved in the case is a showing
that, under operation of the sliding
scale plan for annual adjustment OF
the rates of the gas company, with
out major changes being made in its
guiding principles, the company is
entitled to rate boost of $685., 189
for the next year, according to COM
pany calculations, or rate boost OF
s326,3l0, according to the figures OF
the commissions staff. For the OPA.
Mr.. Booth has argued that, by ap-
plying changes in charges to oper-
atlng expense and disallowance OF
certain abnormal Federal taxes and
other changes. the company rates
should be reduced by more than
$4,000.
Majority Ruling.
During the protracted hearings
prior to today's session to hear citi-
zens' views, Mr.. Booth orally had
demanded repeatedly that the case
be broadened to consider Changed
economic conditions" and the Gov
ernment'S effort to prevent price in
f1ation. The commission majority,
with Engineer Commissioner Charles
w. Kutz siding with Chairman
Flanagan, had ruled that, while it
would consider OPA views on price
Initiation, it could not broaden the
case as Mr.. Booth desired, since the
order for the hearing dated last
March did not call for investigation
of fundamental changes in the slid
ing scale plan.
Last Monday, however, Mr.. Booth
filed formal petition for a reopen
ing of the case to consider the effects
of changed economic conditions on
the 1885 sliding scale plan and the
necessity" for revision of the slid
ing scale plan because of present
economic conditions particularly
those relating to the basic rate of
return and allowance of Federal in
come taxes as operating expenses.
After hearing the views of the
citizens groups, Chairman Flanagan
announced that the commission ma
Jorlty had denied the OPA petition.
Mr.. Booth at once noted an excep-
ton and PUG Member Hankin an
nounced he was dissenting. Mr..
Hankin said he old so because no
rate hearing can leave out of con-
sideration all pertinent facts in the
computation, of rates.
Hankin Gives Stand.
The fact that the commission is
guided by sliding scale arrange
ment in no sense reduces the obliga-
ton OF the commission to fix fair
rates" Mr. Hankin said. ITO do
otherwise would be to denv either
the company or the public fair
hearing, and in this case a fair and
full hearing is denied the public"
Mr.. Booth argued today for a re-
opening of the case on a broadened
basis by referring to the FPC "in-
terim order" in the Panhandle East
ern Pipeline case, reciting that that
Federal agency had enunciated the
principle that it would not permit
a utility under its jurisdiction to
(See GAS RATES, Page A-18.)