The globe-independent. (Hagerstown, Md.) 1943-19??, 1948-07-01
P. E. Report Shows
Marked Gains Made

Work On Six Million Dollar
Riverton Plant Is Ahead Of
Schedule.
Progress on Potomac Edison's $751;,
100000 construction program as re-
ported by Pres. R. Paul Smith at
last weeks regular quarterly meet
ing of the Board of Directors held
in Frederick, indicated that work on
the new $6,5OO,00O Riverton, Va,
$4,000 kilowatt capacity steam pow
er plant is now ahead of schedule
and the station may be in service
several months ahead of the sched-
uled completion date of December,
1949.
In making his report to the Board,
Mr.. Smith commented on many
phases of company activities. In adj
dition to his references to the new
plant he said, I'm order to tie-in the
new generating station with other
generating plants in our System to
insure availability of service to ev-
cry one of our customers, we are
now surveying and acquiring rights
of way for the construction of a
$4,000 volt line from our Cumber-
land generating station to the new
Riverton generating station. 1t is
planned to have this new trans
mission line in service at the time
the Riverton plant is completed. This
tie line with terminal equipment
will cost approximately $1,300,O00.
''The $4,000 volt line which is be-
ing constructed between the r. Paul
Smith generating station and Fred
erick, is expected to be completed
by the end of September and will
greatly augment the power supply to
the Frederick territory.
'"The construction of new homes
throughout the territory of our Com
pany and its subsidiaries continues
at a rate never before experienced.
Each of the new homes built neces-
states short extension, meter, a
service and frequently transform
er, in order to provide electric serv-
ice. The volume of this work is so
great that we have neither man
power nor material available in suf
ficient quantities to make it possible
to construct additional lines in rural
areas at as rapid rate as either
the unserved farms or our Company
desires. Nevertheless, miles of rur-
al line to be built in 1948 will COM
pare favorably with nearly all pre-
ceding years.
'The serving of newly constructed
homes, and the extension of our lines
into additional farming areas, will
result in between 1000 and 5000
customers being added to our lines
in 1913.
although gross revenues show a
greater increase than forecast in
our budget for 1948, operating ex-
penseS have increased even more
rapidly. During the past twelve
months our coal bill has gone up
approximately 100000. Salaries
and wages have increased substan-
TALLY and virtually all material costs
are higher. Only the greatly in
creased volume of business and &C.
onomies we have been able to effect,
including the greater efficiency of
our newest generating unit at the
r. Paul Smith station, have made it
possible to continue to supply cleo
trio service at the lowest rates in
our history, at a time when prac
tically everything else is double the
unit price of ten years ago.
'In our Transportation Depart
ment, new bus equipment and in
creased mileage operated have made
it possible to hold gross revenues at
approximately the level of year
ago. Operating expenses reflect
higher wage rates and several in
creases in material costs during the
past year, particularly gasoline. In
an attempt to avoid serious oper-
ating loss in the Cumberland city
bus operation, modest upward adj
justments were made in rates on
tickets sold. We are naturally re-
luctant to increase our bus fares but
we will be forced to do so from time
to time unless there is some relief
from the rapidly rising operating
expenses.
Increased construction expendi-
lures by our electric subsidiaries
will necessitate increased invest
ment in their common stock by The
Potomac Edison Company in order
to provide them with the necessary
funds. Later in the year, prelimin-
airy plans will be presented to the
Board, relative to some future f.
nancing by The Potomac Edison