Evening star., 1943-06-22
Benefits 10 Consumer
Foreseen by PUG in
Utility Rate Inquiries
Flanagan Tells Senate
Unit of Tremendous
Financial Investigation

The Public Utilities Commission
hopes ito get additional benefits
for the consumers" out Of a series
of inquiries it plans to make during
the coming fiscal year into the rates
and earnings of the streetcar. gas
and electric companies, Chairman
James H. Flanagan of the Public
Utilities Commission told the Sem
ate Subcommittee on District Ap-
preparation, in hearings made pub
lie today.
In support of a request for sew
eral more technical employees for
the commission, Mr.. Flanagan said
the rate hearings during the last
year were child's play compared
with what we are now facing this
year. We have said we would go
into a complete investigation of
the sliding-scale arrangement un-
der which the electric company has
been operating since 1924, calling
for a study of depreciation meth
ods and of rate of return, and OF
everything connected with deter
mination as to whether the COM
pany is making too much or too
little money"
The same, almost in its entirety,
will apply to the gas company"
Mr.. Flanagan continued. And, as
I said, we have just now issued an
order of investigation on the Capt.
tai Transit Co. 1t is really stagger-
ing to visualize just what that
means in detailed work"
Approval Expected.
The Senate is expected to ap-
prove the new personnel item, for
one engineer, one engineering
craftsman and accountant, and
one auditing assistant.
Senator Chavez, Democrat, of
New Mexico asked what results the
commission expects.
Our hopes are to get additional
benefits for the consumers" said
Mr. Flanagan. The sliding scale
arrangement of the electric COM
pany has been in effect for years.
1t should have been reviewed; there
are elements of it which we think
should be corrected. After they
have been corrected and the re-
suit is lowering of the rates. then
it means hundreds of thousands of
dollars a year. We expect to get
some real benefits out of our in
vestigations.
AS to the advisability of re-estab-
fishing the Office of peoples counsel
before the Utilities Commission, the
members of the commission ex-
pressed their separate individual
views.
Flanagan Cool to Idea.
Asked by Senator Holman, Repub-
licap. of oregon If he concurred in
the idea, Mr.. Flanagan replied, mot
entirely, sir" but added that if the
citizens want it, Il shall not take
position against it."
Gregory Hankin, another member
of the commission, said his personal
view is the appointment of
peoples counsel is of utmost i'm
portance."
Senator Burton, Republican, of
Ohio brought out that the Senate
District Committee recommended
filling the Office, which is still au-
thorized by law, but for which no
appropriation has been made in
recent years. When William A.
Roberts, the last peoples counsel,
left the post the salary was con-
tinued for few years, but the
President did not appoint a sue
cessor.
Kutz Gives Views.
In the hearings made public today,
Engineer Commissioner Kutz, who is
also the third member of the
Utilities Commission, said:
This question came up for con-
slderatlon by the Board of Com
mlssloners of the District at the
time the budget was being prepared
and 1t was generally understood by
those present that the present ad-
mnMstration opposed the appoint
ment OF peoples counsel. But 1
have no official knowledge"
Senator O'Mahoney, Democrat, of
Wyoming inquired, "On what was
that understanding based?"
"On conversation around the table
I have no personal knowledge, no
information from the White House
at ALL Col. Kutz replied.
The Senate subcommittee left the
peoples counsel salary in the bill,
and added another $4,000 to provide
clerical assistance in the counsels
ONCE, If the President makes an