Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-23
Pepco Rate Battle /.
Pointed toCourts
As Hssiil,gs En-
ffsasfezs. ~
Submission Of Reports
Mondoy Will Wind Up
Sessions Formally

Hearings on the 1913 consumer
rates of the Potomac Electric Power
Co. have been ended except for
what appear to be few formalities,
which may be concluded when the
sessions are resumed at 10 am.
Monday.
Among these are reports by Pepco
on certain figures concerning work.
ing capital as part of the rate
base OF the company for the past
year. Considerable objection had
been raised to them by Gregory
Hankin, PUG minority member, and
counsel for the Federal intervenors.
This and other subjects raised
again at the last minute yesterday
were seen as pointing the power
rate case to the courts, since many
Of the questions and answers OBJ
viously were directed to the record"
instead of to members of the PUG,
who already had the advices or had
before them documents which con-
tanned the matters under discussion,
The PUG majority already has
indicated it is prepared to order an
immediate rate reduction, within
the framework of the existing slid
ing scale plan. For instance, one
exhibit presented by v. A. Noel
fresh, commission chief accountant,
showed that by allowing only
Federal tax rate of 81 per cent
against operating expenses, and by
certain other adjustments, there
could be rate reduction of some
thing more than $4,000.
A 81 per cent tax rate as q charge
against operating expenses was
ordered by the PUG in the WASH
ington Gas Light Co. case of last
fall. The case is now in the courts
by reason Of an appeal by OPA.
Counsel for OPA and the Treas
ury have commended for a much
larger rate reduction and one of
their principal witnesses, David A.
kosh. rate analyst for the OPA, has
submitted a series Of tables to show
what great savings in Federal in
come taxes would result from rate
reductions exceeding the 1915, 900
figure.
PUG. Chairman James H. Flana-
gan has declared that the many is
sues regarding depreciation account
mg-the level of the basic rate of re-
turn to be allowed the company I'M
der sliding scale plan, the amount
OF war taxes which should be borne
by the company instead OF its con-
sumers, as we'll as the more funda-
mental questions of whether the his
toric sliding scale plan should be re-
vised or abrogated-should be con-
sidered at q later investigation and
hearing.
In restricting this case to proce-
dure under the sliding scale plan, the
PUG majority has announced its
plan to order Immediately after this
case Is ended subsequent investiga-
ton and hearing on all such broader
issues. It said it did this In the hope
Of achieving what appeared to be a
possible immediate rate cut that
would not be involved In the later
broader issues.
Yesterday there was lengthy ar
glment over many issues about adj
miSsibility Of evidence, citation Of
court decisions and taking Of excep-
lions from rulings, during which Mr..
Hankin noted several dissents from
rulings from Chairman Flanagan
and Engineer Commissioner Charles
w. Kutz. Regardless Of how long
arguments last Monday, the OpA
and the Treasury have announced
they have closed their testimony and
have been given until April to sub
init legal briefs.