Evening star., 1945-08-20
Gas RATE Study
Ends;Accord| Is
Seen on Price
PUG Hearing Held;
Both Sides Offer
Figures on Business

Rates of the Washington Gas
Light Co. are expected to remain
at their present status as result
of. the two-hour annual hearing by
the Public Utilities Commission to-
day under terms of the sliding rate
scale arrangement.
This was assured after the hear
Ing by Commission Chairman James
H. Flanagan, who said no contest
over rates developed.
A witness for the PUG testified
that in his opinion, the present ef-
fective per cent rate of return
was fair and just" and a COM
panys spokesman later said that
on the basis of per cent, sit is
not feasible to increase rates."
Figures Run Close.
Figures presented by both sides
differed only slightly as to the rate
OF return earned in the year end
ing June 80, 1945. The PUG figure
was 5000 per cent; the companys
figure was 5.6948 per cent.
The hearing was one of the short
est in the annals of public utility
history. The atmosphere was cordial.
There were only three witnesses, two
for the PUG and one for the COM
pany.
The first witness, v. A. McElfresh
chief accountant for the PUG, pre-
sented comprehensive report on
his investigation. Assistant Corpor-
ational Counsel Lloyd B. Harrison,
attorney for PUG, asked Would the
per cent rate of return be fair and
just?"
Agrees on Return.
Mr.. McElfresh replied: "Yes, I
think it would be-"
o. H. Ritenour, controller of the
gas company, after presenting his
report, was asked by Oscar Berry,
counsel for the gas company, if the
company was seeking to increase
rates for the next rate year.
Mr.. Ritenour replied: IF a basic
rate of return of 6la per cent is.
used as specified in the sliding
scale arrangement the company
will be entitled to an increase in
rates of $109,250. On the other
hand, If a basic rate of return of 6
per cent is used, as it was used last
year, the amount of indicated def
cheney is so small that it is not
feasible to increase rates. Accord
lngly the company would waive the
rate increase this year"
U. S. Wants Study.
The figures presented by both
sides differed only slightly in re-
gard to principal factor involved.
The PUG listed the net amount
available for return as S1,859,O13.1l;
and the company figure on this
point was s1,858,315. The rate base
as of June 30, 1945 was listed by
PUG as $32,631 300 13; and the COM
pany's figures was S32631,S77. A
rate of return earned was listed by
PUG at 5000 per cent and by the
company at 5.6948 per cent.
Appearing for the Government. a
large consumer of gas, Robert H.
Lynn of the Treasury Department
asked to examine the testimony in
the case with view possibly to fl
ing a brief for the Government.
He was given 10 days in which to
consider the testimony, and said
that in the event the Government
decided not to file, it would notify
the commission before the Today
period was up.
If the Government files a brief,
the company, at the request of E.
Barrett Prettyman, counsel, would
be given five days more to reply.
Fred A. Sager. chief engineer for
the PUG, presented an elaborate
array Of figures as to the alloca-
ton of property of the company in
the city devoted to furnishing gas to
consumers here and to consumers
outside the National Capital.
The PUG in 1943 ordered a reduc-
ton in the rate of return from 61s
per cent to 81 per cent, but this
order was set aside by District
Court. Although the commission
decided not to appeal the court de-
cision, the case was reconsidered
and the commission established the
6 per cent rate of return which was