Evening star., 1943-02-25
j. ). InterVenes
In Pepco Case,
Seeks RATE Cut
Treasury Officials
Say Move May Bring
Reduction for Public

Demands for heavy reductions
in power bills paid by the Gov.
ernment to the Potomac Electric
Power Co. for the many Govern
ment buildings here were made
today by Treasury Department
officials. coupled with a call for
abrogation of the sliding scale
plan for annual rate adjust
mentS.
Involved in the issues was a threat
OF a move for public ownership If
fair and reasonable rates" were
not possible otherwise.
The Treasury, it was announced
by Secretary Morgenthau at his
press conference, not only will at
tempt to get a reduction in the
estimated $4,O0O,0O0 power bill of
the Government for 1912 but hopes
to help in reducing the power bills
OF the general public.
Action will be taken Tuesday
when the Treasury, which buys
power for all Government buildings
here and in some outlying terri
tory, intervenes in a hearing by the
Public Utilities Commission on
power rates.
The Government petition prob
ably will be filed with the PUG
either late today or tomorrow, IL
was announced by Joseph j. O'Con-
nell, assistant general counsel of
the Treasury.
we intend" Mr.. O'Connell said,
TO make representations for an
overall reduction in power rates for
all consumers in the District. in
which the Federal Government will.
OF course, share, since we are a very
substantial consumer of current.
We expect to propose that ths
commission re-examine the entire
rate structure and give considera-
tlon 10 a revision in the so-called
sliding scale agreement under which
the power company has been oper-
ating for some years" The Govern
ment Is paying several different
rates, he said.
O'Connell Outlines Situation.
Secretary Morgenthau introduced
the whole matter at his press con-
ference. Presenting Mr.. OConnell.
who looks after procurement mat
ters for me-" the Secretary said:
I think he has something of In.
terest to everybody who lives in ths
District OF Columbia who has an
electric light bill Maybe he will be
able to be little helpful in getting
your bill reduced. So Joe, do your
stuff"
Mr.. O'Connell then explained the
situation In 1941, he said, the Cow
ernment used 295,000, 900 kilowatts
OF electricity, which Is 26.2 per cent
of the total electricity used in the
District. TIE bill in 1941 was slightly
less than s3,0oO,00O, but Mr.. O'Con-
nell said he was informed it was
estimated to be about $4,000, 900 in
1912
The Government had been in
discussion with the company for
several months" Mr.. O'Connell said.
but had made very little progress
In a somewhat similar situation in
New YORK a few years ago, Secretary
Morgenthau said the Government
| succeeded in getting ''one rate. and
being treated as well as the best
commercial rate"
AT the District Building it de-
veloped that Treasury officials had
been negotiating directly with the
company for some time, by-passing
the PUG, and that the company had
resisted overtures, stating finally
that its rates were fixed by the Dis
trlct regulatory body. The company
then asked for conference with the
PUG to advise it what had been go-
ing on and PUG Chairman James
l.. Flanagan invited procurement Of.
f1cials to sit in.
Intervenes In Hearings.
AT the conclusion of this confer-
ence. Thurman Hill. chief counsel Of
the Procurement Division, author-
lied a statement in which he stated
the Treasury would intervene in the
PEPCO rate hearings to be opened
at 10 a m. Tuesday and in which he
suggested public ownership "or per-
haps other methods" as means Of
achieving lower Federal power bills
II they are not obtaine dotherwise.
Despite what was said at the Nor
genthau press conference, some Dis
trlct observers were convinced that
If the Government wins heavy rata
reductions it would reduce the pos
slblllty of rate reductions for private
consumers unless the sliding seals
all
steps taken.
Chairman Flanagan has voiced
hopes that power consumers would
get rate reductions soon as result OF
next weeks hearings under the slid,
Ing scale plan and the PUG majority
announced last Saturday that as
soon as the scheduled hearings were
concluded the commission would
order an investigation of the basic
principles in the sliding scale plan
and later hold hearings on whether
1t should be revised or abandoned. 4.
The District Building Conferences
wound up with this statement by
Mr.. Hill:
L might bring this to a conclusion
by saying that today the Governs
ment Is requesting the commission
to intervene and appear at the hear
Ing on March 2. We are stating
specific grounds for intervention
and we are going to appear before
the Public Utilities Commission.
Other Remedies Possible.
This does not mean that we do
not feel that we have other remedies.
since we have specific contract.
We feel that other remedies, such
as an agreement on a special rate,
public ownership, or perhaps other
methods provided by Congress under
the War Powers Act, might be exer--
cised by Treasury Procurement, but
We have decided. after considerable
deliberation, that we will appear be-
fore the commission, state our posi-
ton and, might say, we propose
to ask the commission to re.
examine very carefully the sliding
scale with a yiew of cnupleta ohro.-