Evening star., 1950-06-13
Court Sets Aside
Gas Rate Boost
Granted byPUC
GoIdsboroueh Hints
Commission Stuff
Yielded to Pressure

The gas rate increase which
added some $750.000 a year to
bills OF local consumers when it
went into effect last November
was set aside by Judge T. Alan
Goldsborough in District Court to-
day.
He criticized the Public Utilities
Commission for acting arbitrarily
and cynically" in granting the
Washington Gas Light Co. a 6.l4
per cent rate increase and sug-
geSted that the commissions "ex-
perts" had yielded to pressure.
Not that they (the expertS)
are corrupt" the jurist asserted.
but they don't expect to be con-
nected with the commission for.
ever, and their only future lies in
connecting themselves with
public utility"
Reversal to Be Asked.
Attorneys for the Public Utili-
ties Commission and the gas COM
pany said they would ask the
United States Court of Appeals
to reverse Judge Goldsboroug's
ruling.
Company attorneys said they
would ask that the effective date
of Judge Goldsborough's decision
be delayed until the Court of Ap-
peals has had an opportunity
to act.
The effect of such a delay, COM
pany attorneys pointed out, would
be to maintain present rates with
the PUC-ordered increase intact.
In the event of an adverse deci-
sion in the higher court, the COM
pany would be faced with refund
ing money collected as a result OF
the increase. This would be done
under terms laid down by the
PUG, 1t was pointed out.
Judge Goldsborough's decision
was a victory for the Federation
OF Citizens Associations which had
fought the increase since 1t was
first proposed last summer. At
that time the company asked for
~ per cent increase which would
have raised about $900,0 900 a year
in additional revenue.
Error in Rate Base Charged.
The federation itself first chal-
lenged the PUCRAwana n court,
but withdrew after It's participa-
ton as group was questioned by
PUG and Washington Gas Light
Co. attorneys. The suit on which
Judge Goldsborough ruled today
was filed by Vernon v. Baker,
chairman of the Public Utilities
Committee of the federation.
Judge Goldsborough based his
ruling on two major points:
The PUG acted arbitrarily and
in error" he said. when 1t in
cluded in the company's rate base
an item for $l,744,00 represent
ing the cost of a manufactured
gas mixing plant which was aban-
doned when natural gas supplies
became available.
The commission also erred,
Judge Goldsborough ruled, when
it allowed the company to include
in its rate base the nearly SO mil
lion cost Of converting consumers
facilities to natural gas use.
At the time of the conversion
in l947. Judge Goldsborough OBJ
served. the commission itself had
no idea" that the cost Of convert
ing consumers facilities should be
included in the rate base.
PUG Upheld on Two Points.
The commission. Judge Colds
borough said, has "a perfect
right" to raise the price Of gas to
consumers. But the matter has
got to be handled as the law says
its got to be handled" he added.
Judge Goldsborough upheld the
commission on two points which
figured In the rate increase-"dis-
elimination between classes" of
consumers and a 10-year amorti-
zation plan involving the COM
pany's east station.
Judge Goldsborough said the
Commission was within its au-
thority in approving the plan to
amortize the So million cost of
converting facilities to natural
gas. But he made it clear the cost
should not be included in the rate
base.
There Is no difficulty at all
(Caa GAC Dana AaN