Evening star., 1944-08-19
,Pepco Suit Attacking
PUG Rate Cut Order
Sifted by DC. Counsel
Utility Petitions Court
To Vocote Demand for
$l.037,1S9 Reduction

The corporation counsel's office
today was studying petition filed
late Yesterday in District Court by
the Potomac Electric Power Co.
against the Public Utilities Commis-
sion, which asked the court to
vacate a recent order of the PUG
reducing electric rates for the rate
year, beginning March /, by ST.
037189.
The petition, asking that the PUG
order be vacated, was filed shortly
after the PUG had denied an appli-
cation for reconsideration of its
order to reduce the rates.
Shortly after the petition was filed
In court, Justice T. Alan Goldsbor-
ough signed an order giving the
PUG until September 6 to show
cause why the rate reduction order
should not be stayed, pending a de-
termination Of the case by the court.
Order Called Invalid.
The petition of appeal to vacate
the PUG order declared that the
order lis illegal and invalid in that
1t purports to establish, by unilat-
eral action and without the consent
OF petitioner new sliding-Scale
arrangement for the determination
OF petitioners rates of charge"
The petition quoted from a sec
ton Of the District Code and said
the act "authorizes the use of
sliding-scale arrangement for the
determination of a public utility's
rates only upon agreement of the
interested public utility to the ap-
plication of such a method and to
the provisions of such arrangement"
1t added that the commission is
without power of its own motion
and without consent of the petit
tioner effectively to promulgate
new or modified sliding scale ar
rangement for fixing petitioners
rates of charge"
The petition said the order reduc-
Ing the rates would change the
slding-scale arrangement hereto
lore In effect in such way as ma
terlally to reduce the net available
for return upon petitioners. invest
ment, despite petitioners testimony
indicating that it would not enter
ino any new or modified sliding
scale plan which resulted in such
reduction"
Stand on Sliding Scale.
The PUG order, the petition
claimed, lis tantamount to an
abrogation by the commission of
the slid g-scale arrangement
which was mutually effected
agreement in which petitioner made
certain concessions and relinouished
certain property and rights under
which rates of charge of petitioner
have been fixed since January /,
1925. Petitioner has not assented
to and has rejected the new or
modified sliding scale Arrangement
contemplated by said order" the
petition continued.
In the absence of a sliding scale
arrangement" the petition said,
petitioners rates of charge must
be fixed In accordance with provi-
sions of the act otherwise appli-
cable"
The changes in the sliding scale
arrangement contemplated by the
order are unnecessary, unreason-
able and arbitrary" the petition
claimed. This is so, claimed the
petition, for one reason in that
"the elimination from the rate base
of s5,581,71376 results in a rate
base not only substantially less than
the replacement cost but also less
than the amount actually and pru-
IDENTIFY expended by petitioner for
It's property used and useful for the
convenience of the public"
Investment Cost Cited.
Declaring "the commission found
that the overall cost of investment
of capital of petitioner. properly
adjusted, is approximately s4.641.-