Evening star., 1943-07-23
PEPC0 Seeks
To Block u. ).
RateCut Move
Firm Asks Dismissal
Of Appeal for Bigger
Slash in Tariffs

The Potomac Electric Power Co.,
as an intervenor in its own behalf,
late yesterday sought to block moves
by several Government agencies
which seek through District Court
appeals to reduce the company S
electric rates by more than $4,000, 900
annually instead of by the $4,000
ordered April 26 by the Public Util-
tiles Commission.
On July 2, two appeals were filed
from the PUG order in District
Court, one by the Office of Price
Administration and the Director of
Economic Sterilization and the
other by the Procurement Division
OF the Treasury Department.
The Government, through these
agencies, had intervened earlier be-
fore the PUG, during the latter's
rate hearings, and unsuccessfully
sought reduction in electric rates
OF not less than 100000 annually.
Yesterday the Potomac Electric
Power Co. filed in District Court a
petition to dismiss the appeal of the
OPA and Director of Economic Stab
ilization and also filed an answer to
the appeal of the Procurement Di-
vision.
Court Premits Intervention.
The right to intervene in District
Court in connection with these ap-
peals was granted the company on
July Is by the court, following con-
sent by attorneys of the Govern
ment agencies, it was explained by
S. r. Bowen and William K. Laws,
attorneys for the power company.
Last week a petition was filed in
District Court by the Commissioner
of Public Buildings, Federal Works
Agency, against the PUG also seek
ing the larger reduction. PEPCO
also is seeking now to intervene in
connection with the latter appeal.
In its motion to dismiss the petit
ton of appeal of Price Administra-
tor, Prentiss M. Brown and Fred M.
Vinson, director of Economic Stabili-
zation, the company declares that
the petition fails to state any facts
showing appellants are persons
or corporations affected by the
PUG order. 1t also claims that the
price administrator and economic
stabilization director have failed to
show they have any interest "en-
titling them to prosecute the
appeal.
Disputes Right to Intervene.
In support of the motion to dis
miss. the company also claims the
right of intervention by the two
Governmental directors does not
exist, as no rate increase was under
consideration by the PUG.
In its answer to the appeal filed
by the Director of Procurement.
Treasury Department, against the
PUG, the power company denies
that the appellant, here mentioned,
'is party affected by the decision
and order of the commission. The
company further claims that the
petition of appeal fails to set forth
any facts emitting appellant to re-
lief
The PEPCO answer also denies
various allegations contained in the
procurement directors appeal First
among these is that the decision of
the PUG is based upon findings
which are unreasonable, arbitrary
and capricious.'
Illegal Allowances Denied.
Among other allegations denied
are that the Commission "arbitrarily
and illegally made an allowance for
: depreciation expense In excess of
the sum of s571 ,434o1." Another al
legation denied is that "the Commits
sion arbitrarily and illegally fixed
the rate base of the company in the
amount of s100,15423O.76." Also
denied is that the PUG illegally
determined the net operating income
to be S6,595 ,26O.56"
The company likewise denied the
allegation that the Commission ill
legally allowed as operating expense
the amount of $l,695, 1892 for Fed
eral income taxes" The company
further denies the Commission "il-
legally allowed s3.774;10925 as a
proper amount of working capital"
Among various other allegations
by the director of procurement, the
only one admitted by the PEPCO is
that the procurement divisions pay
ments sto the company for electric
service in 1912 amounted to approxi-
mateiy $5.000,0O0 of the total $20,-
100000 revenues for electric service
received by the company during that
year.
I>I. Il RI