Evening star., 1950-12-22
PUG Receives
Final Briefso on
Pepco Rate Plea
Power Firm Attacks
Transit Company for
Opposition to Raise
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By Horriet Griffiths

Final briefs were being filed
today by parties concerned in the
Potomac Electric Power Co.'S ap-
plication to the Public Utilities
Commission to increase its yearly
revenues by $3,379,0OO through
rate boosts.
Pepco's own brief asserted it
needed relief promptly if its 1851
financing plans are to be sue
ceSsful.
The company, through Attorney
James Francis Reilly, and Corne-
illus Means, devoted many pages to
an attack on the case presented
at the public hearings this fall
by the Capital Transit Co. in op-
position to the increase.
Robert E. Harvey, special assist
ant to the controller for the
transit company, had presented
his calculations to indicate the
power company was entitled to no
increase at all.
Figure Juggling Charged.
So far as the record shows, the
power company brief stated, Mr..
Harvey's qualification for giving
the testimony he did seemed to
consist wholly of an ability to
juggle figures
Regarding Mr.. Harvey'S teSti-
mony on the company's construc-
ton program. the brief contended
1t had mo foundation in either
experience or fact" and was ut
terly worthless"
Mr.. Harvey also chose to tes-
tify as to the company'S esti-
mated revenues for 1851. and with
absolutely no background on the
subject, he endeavored to substi-
tute his theoretical figures for
those reached by the company's
experienced personnel after long
study" it declared.
During the hearings. v. A. Nc
Elfresh, PUG accountant, testified
he believed an additional SIS mil
lion a year would be enough to
keep the power company in sound
financial condition, providing a
5l2 per cent return with a
cushion"
Citizens Ask Denial.
The Federation of Citizens
Associations urged the commission
to deny Pepco authority to in
crease its rates, in brief filed
by Herbert P. Leeman, federation
president. and Vernon V. Baker,
chairman of the Public Utilities
Committee.
The brief asked the PUG to
take note of the national policy
OF preventing. wherever pos
sible, price rises and increases in
the cost of living" 1t argued
that under this policy the rate in
crease should not be appoved un-
less it is definitely shown to be
necessary to give the company the
minimum required return. or en-
able it to continue services to the
public.
This has not been shown in
this case. the brief contended.
According to the federation at
torneys, the company should be
limited to a per cent return, and
no increase in rates is necessary
to effect such return. They
stated the company has SubStan-
TALLY underestimated the revenue
which existing rates will produce
in 1851.
Need for Revision Disputed.
Peoples Counsel John ODea
took the position there was no
need for any upward revision in
Pepco's allowable rate of return.
In a General Services Admins
tration brief, Attorneys Joe E.
Moody, and John j. Kirby, also
recommended a 51a per cent re-
turn.
Pepco should file rates which
would apportion the necessary in
crease in revenue among classes
of customers in proportion to rev.
enue received from those classes
at existing rates.
The attorneys added that rail-
way and street lighting customers,
should pay at rates which would
yield revenues equal to those un-
der the appropriate schedules, plus
amounts to cover the costs of
special services to those customers,
less credit for customer property
used by Pepco in serving other
customers.