Evening star., 1950-08-23
PUG Orders
Pepeo 10 File
Study on Costs
Hearing Recessed
On Rote Increase
PIeo to Sept. Is

ISO ~ SSPt. &S
The Potomac Electric Power
Co. today faced the task of show
ing the Public Utilities Commis-
sion just how much 1t costs to
provide electric service to its yar4-
ouS classes Of customers.
This unusual requirement was
made by PUG Chairman James H.
Flanagan yesterday, as he re-
cessed until 10 am. September
Is the public hearing on the COM
pany's request for a 9h-cent rate q,
increase.
The length Of the recess dashes
the company's hopes to put the
new rates in effect on September
20.
Pepco Case Completed.
These developments came after
Pepco completed presentation Of
itsscase for providing an additional
$3.5 million annually in operating
revenues. The PUG sometime ago
had announced it would recess the
hearing at that point to allow
time for preparation of cross-ex-
animation.
Mr.. Flanagan's ruling was pre-
ceded by differences among the
parties over the length of time for
the recess and a charge by a Cap
ital Transit Co. attorney that
Pepco had not furnished informa-
ton the transit company wanted.
Capital Transit Attorney Ray
mond Sparks demanded that Pep
cos application be dismissed.
He charged the company had
failed to make out case to JUS
tify any increase in its rates to
the Capital Transit Co. or to any
other customer.
Criticizes Approach. -
He criticized what he described
as Pepco's approach of assuming
a certain increase should go to
Capital Transit and then setting
out to prove the validity of the
assumption.
In proposing its new rates,
Pepco called for Capital Transit
to put up an additional $661 900
a year for streetcar power-an
increase of 10 per cent.
This apportionment Of a large
chunk Of the requested increase
to one customer and assignment
of another $4,000 annually to
the District Government for street
lighting apparently led to Mr..
Flanagan's requirement Of cost
of-service study.
Bid for Dismissal Denied.
B The PUG chairman denied Mr..
Sparks bid for dismissal, which
Pepco counsel refused to dignity"
by an answer. but he added:
"The commission feels that, be-
cause Of the wide range of In.
creaSes proposed, it will be unable
to make q decision without a cost
of-service study, and it directs the
company to prepare such a study
for submission"
Capital Transit then interposed
that the additional data would be
direct testimony and that it should
have the information In time to
study it before it could make
cross-examination.
Mr.. Flanagan said, however,
there were "other phases to this
proceeding besides the increase
proposed to Capital Transit He
said he did not believe Capital
Transit needs to wait until the
entire case is presented to make
out its own case.
Officials To Confer.
officials of the two utilities
were to confer this morning on
additional information sought by
the transit company.
Besides furnishing the spectacle
Of two big public utilities at odds
in a rate hearing, the proceedings
include these other intervenors:
The United States Government.
the Federation of Citizens AS
sociations, the willard Hotel and
the Terminal Refrigeration and
Warehouse Corp.
The District Government has
indicated it will not intervene
formally but may present state
ment Of its case to the PUG.
Engineer Commissioner Gordon r.
Young has disqualified himself
as a PUG member from either
hearing the testimony or reaching
the decision.
s Herbert F. G. Main. Pepco rate
engineer, testified for the power
company during yesterdays ses-
sion.
He said the company's studies
indicate major changes are re-
quired in the street lighting and
street railway service to make
them more in line with other Gus
toner groups.
Besides the amounts assigned
to these two services, $23, 900 Of
the requested $3.5 million increase
is proposed for the Southern Mary
land Electric Cooperative, he
said.
The rest would be allocated to
the residential. commercial low
voltage and commercial high volt
age classes. The residential class
would be increased about 4 per
cent, the low voltage commercial
class 51a per cent and the high
voltage commercial class 10h per
cent. l..
Presbyteriun Church Bill