Evening star., 1950-08-21
Capital Transit
Fights Pepco's
Plea at Hearing
Gen. Young Drops Out
OF PUG Consideration
Of oH% Rute Raise
By Colt HendIey

The Capital Transit Co. today
pledged an all-out fight to pre-
vent the Potomac Electric Power
Co. from raising its rates on the
electricity the transit company
uses.
The unusual spectacle of two
big public utilities fighting each
other opened at the District Build
ing today as the Uublic Utilities
Commission opened hearings on
Pepco's request for a 912 per cent
rate increase.
F. Gloyd Await, attorney for
Capital Transit told the PUG.
I'VE will fight every step of the
way to prevent further burden
on the transit rider as a result
of Pepco's demands. The COM
pany is throwing all its know-how
into protecting it's patrons against
the demand of Pepco."
New Fare Increase.
Mr.. Await indicated that II
Capital Transit's power bill is in
creased by s661 900 annually, or
70.7 per cent. the transit company
would have to seek a further in
crease in bus and streetcar fares
to make it's books balance. He
said Pepco's move makes the
transit company's recent fare in
creases almost meaningless"
He pointed out that when Capt.
tol Transit presented it's case be-
fore the PUG several months ago.
nothing was brought out about the
Pepco plans to seek an increase
in electric rates. He added:
ut would seem that Pepco, with
knowledge and forethought. led
this commission and Capital
Transit astray."
AS the hearing opened, PUG
Chairman James H. Flanagan an
nounced that Engineer Commis-
sioner Gordon r. Young had dis
qualified himself from the
proceedings and would not take
part in either the hearings or the
decision.
d. c. Won't Intervene Officially.
Gen. Young Is one of three PUG
members. The District government,
as one Of Pepco's biggest Gus
toners. would be stuck for an
additional $4,000 annually for
street lighting under the rate in
crease proposal. This represents
59.8 per cent raise in the bill.
Although the District does not
plan to intervene in the case off,
cially, it will present some testi-
mony at the hearing.
Pepco is seeking higher rates to
provide additional annual oper-
ating revenues of $3.5 million. The
company requested that new rates
go into effect September 20.
Under the proposal, residential
customers share of the increase
would be SAT- 900, or an overall
boost of 4,3 per cent. Commercial
users of electricity would bear an
annual increase of about $685.
600.
James F. Reilly. attorney for
Pepco. opened the power COM
pany's case by stating the increase
is needed for an expansion pro-
gram necessary to provide ade-
quate service. To do this, he de-
clared, the company must con-
tinue to raise substantial amounts
of additional capital.
Expansion Plans Given.
James H. Ferry, executive vice
president of Pepco, took the stand
to give details of the proposed pro-
gram. He said Pepco plans to
spend $74.591 900 by 1854 to ex-
pand its facilities. After adjust
ment for price advances, this fig
ure becomes $79,918,0OO. he de-
clared.
Mr.. Ferry gave these figures:
l. Direct expenditures to pro.
vide service to customers-includ-
ing meters, transformers, street
poles, fixtures and extensions-es-
timated at $21 $4,000
2. Expenditures for added pro-
duction, transmission and distri-
button facilities to meet increasing
demands of present and new Gus
tomerS-an estimated $44, ,341 900.
3. Expenditures for transmits
sion and distribution facilities to
be relocated because of street
widening and other public works.
which produce no added revenue
an estimated $5,337, 900.
4. Expenditures for general
(See PEPCO, Page A-4O