Evening star., 1947-07-31
sec and vepco
Resume Talks
On RafeCuts
Commission Rejects
Mayor Edwards Plea
To Send Observers
BY the Associoisd Press


RICHMOND, Va, July 3l.-vir.
ginia Electric & Power Co. and
State Corporation Commission Of
f1cials today resumed negotiations
looking toward electric rate reduce
tions after failing to reach an agree.
ment yesterday.
The conference yesterday, con.
Quoted without benefit Of local gov
ernment participation, was resumed
only few hours after the commits
sion for the second time rejected o
request of Mayor Edwards of Rich
mond that representatives of politi-
cal subdivisions be allowed to sit
in on the conference.
Jack G. Holtzclaw, vepco presi-
dent, said the conference was de-
voted to a company rebuttal Of
sec figures on which the commits
sion based its decision to open rate
negotiations.
Mr.. Holtzclaw said he and r.
Justin Moore, Vepco counsel, gave
the commission "Vepco's side of the
case" which, he added, consisted
of statements to the effect that, in
view of present business conditions
and the company's 100000, five
year building program, the firm
could see no justification for a rate
reduction at this time; that, should
the companys earnings at the end
OF the year appear to the sec to be
too high, adjustment could then be
made in the form of a consumer
rebate" such as that of last De-
cember. that, contrary to Mayor
Edwards figures comparing Vepco
rates with those of Is selected"
cities, the charges actually are lower
than the average of 80 cities of more
than $4,000 population lying within
200 airline miles of the Atlantic
Coast.
Earnings Are Cited.
At the same time, Mr.. Holtzclaw
said net earnings during the first
half of this year were lower than
during the comparable six months
of 1916, and he predicted that,
projected into the remaining months
of 1947, the company's annual net
would be pproXimately the same as
was that of last year before deduc-
ton of the consumer dividend"
That figure would be slightly more
than $9,0o0,00o.
This apparently unchanged earn.
ing capacity of the company, he said,
will be maintained despite the fact
that by the end of 1947 Vepco will
have added approximately $16,00o,-
900 to its investment in. the way Of
additional physical properties.
Both the company president and
Jadge H. Lester Hooker of the COM
mission said sec engineers and &C
countants will return to the Vepco
offices today to go over the firms
books in an effort to check on esti-
mated earnings figures.
Their findings will play q major
part, it was indicated, in the nego-
tiations.
Rates Are Listed.
Vepco's rate survey showed that
the average rates of the 80 cities
under comparison were, for resi-
dental service: For rs kilowatt
hours, $1.45; for 100 XVIII, SAIL; for
$50 XVIII, $3.50; for 500 XVIII, $10.92.
The company'S rates for the same
consumer classifications were SIPS,
$3.95, $3.50 and $3.50.
Officials said no request was made
during the session by any local gov
ernment representative that he be
allowed to participate.
The commission evidently had
clinched that matter for the present
by telling Mayor Edwards by letter
earlier in the day that it would be
glad to receive "in writing" any
information or data which is be.
lieved to be helpful and informative
to the commission ="
Reply to Mayor.
The letter was in reply to a mes
sage from the Mayor who said he
was reluctant to regard as final q
previous sec rejection of his re-
quest that Government representa-
tives be allowed to participate in
the talks.
The sec reply said: ..
Should you or any other member
Of the public possess information
or data which is believed to be help
full and informative to the COM
in the performance of its
duty in this or any other connection,
it will be pleased to receive the
same in writing at such time or
times as the offerer desires to file It,"
The wording apparently consti-
tuted firm repetition of the secs
views that it could not shift or
share" with others its legal obliga-
ton to fix utility rates.