Evening star., 1943-03-29
testimony Ends
In Hearing on
Power Rates
Briefs Must Be Filed
By April 1;;Cut
= Is Expected
By DON 8. WARREN. .

k1G8F1N8S Oc1OTe C0c kuOllC OCll-
lties Commission on Potomac Elec-
trio Power Co. rates for this year,
revolving around the sliding scale
plan for late adjustments. were con-
eluded this afternoon when testi-
nony was closed.
James H. Flanagan, PUG chair
man, announced hearings were ad-
journed subject to call, but 1t was
believed the case actually was closed
except for the submission Of briefs
by attorneys for all parties to the
case, including intervening Federal
agencies. The commission has al
lowed until April ! for presentation
Of such arguments.
It is anticipated the commission
will order q rate reduction, but the
amount OF the rate cut has been
subject to sharp contests raised by
the intervenors and Gregory Han
kin. the commission minority mem
Der. -
Immediately after decision in
this case, the PUG has promised
hearings later on the broader issues
OF fundamental changes in or abro-
cation of the sliding-scale formula,
issues which the PUG majority ruled
out of this case.
Today's session was marked by a
furry of argument and rulings over
the admissibility of exhibits and
testimony.
Mr.. Hankin offered as an ex-
hibit, at the outset of today's ses-
sion. table of figures prepared at
his request by v. "A. McElfresh, the
commissions chief accountant, to
show what would have happened
had interest on the depreciation re-
serve balance been computed at the
rate of return by the company at
the end of each test year instead of
at the per cent rate used in the
sliding scale formula. Under ques-
tioning by Mr.. Flanagan, the witness
said use of the company return
figure would amount to "hindsight"
instead of currently known facts.
Exhibit Ruled Out.
Over objections from Harry r.
Booth and Thurman Hill, repre-
senting the OPA and the Treasury,
Chairman Flanagan ruled the ex-
hibit out of the case as having no
relation to 1t.
This brought a dissent from Mr..
Hankin, who remarked the pro-
ceedings had been most unique" as
to admissibility of evidence, adding:
mo rules of evidence at all ap-
ply-admissibility is not a question
OF relevancy but whether the Of
fered evidence strikes the fancy of
the majority members Of the COM
mission"
He argued again that the statu-
tory requirement that the commits
sion fix fair and reasonable rates
still Is the guiding principle even
where there is a sliding scale formu-
la; that the evidence shows rates
have been and are too high and
that the sliding-scale formula for
handling depreciation charges Is not
in accord with the statute.
Flanagan Replies.
To this Chairman Flanagan re-
piled: The record will show any
evidence having q bearing on is
sues In this case has been admitted
and that evidence or exhibits show
ing no sense in preparation or en-
tirely foreign to the issues have been
excluded"
Mr.. Booth again declared the
Federal intervenors had been denied
the right to present material evi-
dence and therefore had been denied
n fair hearing"
s. r. Bowen, counsel for the COM
pany, In objecting to the Hankin
table on depreciation, suggested it
might perhaps be presented in the
subsequent case when the commits
sion is to consider basic changes or
abrogation Of the sliding-scale plan.
Mr.. Hankin picked this remark up
later to say he was familiar with
what he described as the delaying
tactics Of the company and he
warned Pepco on the depreciation
issue: Il shall remember you next
time"
Study on Receipts.
Responding to q demand made
more than a week ago by Mr.. Hankin
that 10 per cent check be made of
the bill paying habits of company
customers as guide to how large
should be the cash working capital
allowance in the Pepco rate base,
the company today offered the re-
suits of such study.
This showed that the number of
days lag In receipt of revenues (time
taken by customers to pay bills be-
tween the middle of the service
month to date of paymen) averaged
q little more than As days.
This check, described by Harold
G.. Hayden, Pepco controller, bore
out predictions made on the stand
earlier by, Pepco President Arthur
G. Neal, and supported the company
claim for q cash working capital al
lowance OF approximately $1,158, 900.
Mr.. Hankin and counsel for the
Federal agencies had suggested the
sum was much too large, estimating
bills were paid faster than Mr.. Neal
had figured. This exhibit, however,
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