Evening star., 1950-10-20
Pepco Asking
Too Big a Raise,
PUCContends
Engineer Testifies
On PIun to Cut Rates
For Apartment Houses

For Apartment Houses
A Public Utilities Commission
attorney today said evidence will
be presented to show that the
Potomac Electric Power Co. does
not need as high rate increase
as it has asked.
Lloyd Harrison, PUG counsel
said during cross ss-examination OF
Herbert F. G.. Main, Pepco rate
engineer, that he felt that after
the PUG staff had presented its
case there will be grounds to be-
lieve that less revenue is needed
than Pepco asked"
The commission is holding pub
lie hearings on the power COM
pany's request for an overall go
per cent increase in rates to bring
In an additional $3,379,000 a year
Earlier, Mr.. Main had testified
under questioning by Mr.. Har-
rison that 1850 large apartment
houses in Washington would re-
ceive a 10 per cent reduction in
their electric bills under the pro-
posed new rates.
Apartment Shift Planned.
Mr.. Main explained that the
apartment houses now served on
q commercial rate would be
shifted to a large residential
consumer rate under the proposed
schedules. These apartment
houses are served by one PEPCO
meter and pay one bill each
month. The tenants do not pay
electric bills as this included in
their rent.
Mr.. Main said these apartments
now are paying $1,785,000 for
electricity annually.
The rate engineer said Pepco
felt the apartment houses were
being charged too much for the
power they use at present. He
said the new rates would be more
equitable and put the apartments
In the same class as other residen-
tial customers.
He pointed out that the power
company did not have the ex-
pense of putting a meter in each
apartment and only had to send
one bill, all of which should be
taken into consideration.
Would Go to Owners.
1t was pointed out that the 10
per cent reduction would go to
the apartment house owners and
not to the individual tenants,
since the tenants rent covers all
utilities. Any adjustment to bene-
fit the tenants would have to come
from the owners.
AS yesterdays hearing closed,
Pepco admitted it had made
an error of $104, 900 in computing
the new rate the Capital Tran
sit Co. would have to pay for
its power under the proposed
schedule. Capital Transit is fight
ing any increase, warning it would
mean another raise in streetcar
and bus fares.
Mr.. Main testified the first
schedule submitted by the power
company called for the transit
company's new annual power bill
to be $661, 900 over its present bill
of 1888, 900, an increase of some 10
per cent.
The revised proposed rates for
Capital Transit, Mr.. Main Sesti-
fed, would jump the company's
bill $557, 900, or So per cent.
Explains Error.
He said the error came because
the first rate schedule was based
on the premise that the transit
company's demands-the average
amount of power used in a given
period-were figured on an hourly
basis, whereas actually the in
formation used was based on a
15-minute demand. 1t was strictly
q paper error" Mr.. Main said.
AS a result of this error, the
Pepco request was scaled down to
an increase in electricity rates
averaging 90 per cent. This in
crease would bring the company
$3,379,000 a year.
The original request for 9.45
per cent increase would have
brought in additional revenues of
$3,483, 900 annually.
At yesterdays session. r. Roy
Dunn, vice president and treas
urer of Pepco, and James H. Ferry,
executive vice president of Pepco,
were cross examined by various
interested parties in the proceed
ings.
Dispute Contention.
Striving to dispute the power
company's contention that it needs
the rate increase were John Kirby,
attorney for Government Services
Administration, one of Pepco's
biggest customers; Daryal Myse,
attorney for Capital Transit, and
Herbert P. Leeman, president Of
the Federatino of Citizens Asso-
Citations.
The old Capital Traction Co.,
which was merged with another
firm in 1888 to form the present
Capital Transit Co., had facili-
ties for producing its own power.
AS Pepcos request stands now,
the residential users of electricity
would have to stand an annual
boost of $470, 900, or about as per
cent. The District stands to pay
S697 900, or 58.7 per cent more
for street lighting. The Federal
Government faces a 10 per cent
increase on its annual power bill
of more than $6 million.
Chamber to Be Host