Evening star., 1943-04-21
Residences Get
4.Cents-a.Month
Power Saving
Cut Set at $310, 400,
With $243, ,178 for
Commercial Users
BY DON S. WARREN.

Residential users of electricity may
expect saving of no more than AZ
cents on their monthly power bill, it
was indicated today. as the Public
Utilities Commission completed
hearings on rates of the Potomac
Electric Power Co. for the year be-
ginning March l. 1943. Under the
PUG decision, the total rate cut
would amount to about $310,409.
The majority of the savings would
go to commercial and industrial
users, including the Federal and
District governments, under alloca-
tions of savings proposed by the
company at today's session.
While the majority members OF
the PUG had ordered a rate cut of
$310, ,409, under operation of the
sliding scale plan, the company. in
preparation of the complicated rate
schedules, reported that in actuality
their proposed new schedules would
effect total savings of s311,784. OF
this total, $68,60 would be given to
residential customers and $243.l78 to
commercial and industrial customers.
Rates for Householder.
1t was computed that a house.
holder now paying a monthly bill
of $140 or more would receive a
reduction of AZ cents and that there
would be no reduction unless the
householder used as much as 35
kilowatt-hours a month. The re-
ductions would be less than AZ
cents a month unless the customer
used So kiloWatt-hours or more
month.
The final session of the hearings
brought a renewed demand from
Gregory Hankin, PUG minority
member, for total rate cut much
greater than that ordered by his
colleagues. He declared today that
"the record shows" that for the new
year rates should be reduced by S4,-
943,683 and that rates should have
been reduced for the past year by
$2,874,183.
After the hearing experts calcu-
lated that the near $5,000,000 cut
proposed by Mr.. Hankin for the
new year would considerably exceed
the actual net income of the COM
pany in the last calendar year.
Harry r. Booth and Thurman
Hill, counsel for the OPA and the
Treasury reserved their arguments
for heavy rate reductions and over
rulings by the PUG majority for in
clusion in their formal briefs, yet TO
be filed, but they sought today 10
show discrimination in rates, in tina;
the Capital Transit Co. receives a.
lower per kilowatt hour rate than
do other commercial or industrial
users.
Points to Contract.
S. r. Bowen, Pepco counsel,
brought out that legislation by
Congress authorizing the merger of
the old street railway concerns here
called for special contract fer
power sales to the Capital Transit
Co. subject to approval by the PUG.
V. A. McElfresh. PUG chief ac-
countant, explained that the transit
firm provided certain facilities Of
value which should be figured into
the transit company power rate in
order to give full picture of that
contract.
Questioning brought out that the
average revenue received by Pepco
per kllowatt hour of current last
year amounted to 1904 cents; that
the average cost per kilowatt hour
Tor residential A customers was
2.4O5 cents: for schedule E custo-
mers, IL cents per kilowatt hour;
Tor schedule L (high tension) users,
including Government agencies, BAT
cents per kilowatt hour; for sched-
ule P customers Qarge power users,
including Government agencies =,
.614 cents per kilowatt hour, and
under the special contract for the
Capital Transit Co., .791 cents per
kilowatt hour.
The New Schedules.
The new schedule proposed for
residential A calls for a reduction
in the first two, kilowatt hour blocks
instead of in the price per kilowatt
hour. The new rate would be. if ap-
proved by the PUG, for the first "a
kllowatt hour instead of for the
first 36 kilowatt hour, 80 cents; for
the next l03 kilowatt hour, instead
OF the next 100 kilowatt hour. 18
cents, and for usage over 1856 kilo-
watt hour a month, is cents. There
is no change in the minimum charge
of rs cents a month.
The company said there would be
a reduction of $1,000 in the suburb
an residential schedules AS and
AR, making the total residential
savings, $68,606.
Savings in schedule E rates for
commercial and industrial rates
would be effected by a reduction in
the first two kilowatt hour blocks
and by a reduction of Is cents in
the demand charges. The new
schedule would be for the first so
XVIII. instead of the first 60 XVIII.
month, 3.8 cents: for the next 200
XVIII. instead of the next 100 XVIII.
% cents, and the following which
would continue as at present: For
the next 1,750 XVIII, 2 cents; for the
next $4,000 XVIII, III cents; for the
next 155, 900 XVIII, or cents, and for
usage over 205,O0O XVIII, O.6 cents.
Estimated Savings.
This was estimated to effect an
annual saving of $162,273 and to
this would be added saving OF So
462 for suburban users under sched-
ules E-S and Err.
Savings would be effected for
commercial and industrial schedule
L only by reduction of 20 cents in
the demand charges. This was esti-
mated to result in an annual saving
of $63, $50.
Savings of 1898 were estimated
under the proposed new commercial
and industrial schedule F., for which
the only change proposed was a
reduction Of 20 cents in the demand
charges.
The commission was expected to
meet later today or tomorrow to con-
slider decision on the proposed new
schedules. The PUG majority has
announced heretofore that as soon
L.