Evening star., 1952-05-02
Court UphoIds PUG
S2.6 Million Boost
In Pepco Rates

The $2.6 million increase in
yearly earnings granted the Poto-
mac Electric Power Co. by the
Public Utilities Commission was
upheld late yesterday by District
Court Judge Alexander Holtzoff
Judge Holtzof heard arguments
early last month on three appeals
to District Court opposing the in
crease. He had taken the case
under advisement at the end of
arguments. His decision yester-
day was in the form Of q 22-page
memorandum opinion.
Those who had appealed from
orders of the PUG granting the
increase included Herbert P. Lee
man, civic leader: the Capital
Transit Co. and the Federal Gov
eminent.
The increase became effective
in April, 1851. It was estimated
by Pepco. at the time, that the
new rate schedules meant an in
crease Of about 10 cents Q month
to the average residential con-
|sumer, whose bill before the in
crease was $4.07 q month.
$230,0OO Cost Protested.
Capital Transit, in its appeal to
the court. contended its share of
the increase for use Of power was
too great. It amounts to a little
more than $23o.000. it was said.
The Federal Government, in
turn, said the transit company's
share Of the increase was not as
large as it should be but joined
the others in contesting the over
all increase.
Judge Holtzoff pointed out, in
his opinion, that the basic find
ingS" Of the PUG were that the
rate upon which Pepco is entitled
to earn a "fair and reasonable
return is $146,926.00 Also, that
lit found that fair rate of return
is 512 per cent. he pointed out.
"The final outcome" said Judge
Holtzoff, was an increase Of 51a
lper cent for residential con-
sumers, 6.3 per cent for low volt
age consumers. 86 per cent for
high voltage consumers, ~ per
cent for street lighting and 23.1
lper cent for street railway service. u
Review Only Of Law.
The judge said it is his opinion
that mo Constitutional question
is involved"
"The applicable statute. he
said, provides. first, that the re-
view by the court shall be limited
to questions Of law; and second
that the findings of fact by the
commission shall be conclusive
unless it shall appear that such
findings are unreasonable,
arbitrary or. capricious."
"The opinion and the findings
OF the commission" Judge Holtzof1
said, in the opinion. indicate that
the matter was studied in great
detail and scrutinized with pains
taking and meticulous care. The
lengthy opinion Of the commits
sion contains a close analysis OF
the pertinent testimony, detailed
findings Of fact, and an enlight-
ening discussion of the matters
in controversy"
AT another point in his opinion
he said questions the court might
consider are:
l. whether the commission has
committed any error of law vitiat.
ing its order.
2. whether it's conclusions are
adequately supported by findings
|of fact :"
3. whether the findings of fact
|are sustained by substantial evil
|dence."
i Rejects Contention.
i Judge Holtzoff observed that
lMr. Leeman and the Capital Tran
.lSit Co. contended the PUG had
mo right to asconsider as a single
|unit all of the AbusineSs of the
company CPepco). including its
,iactivities in Maryland and vir-
'lginia."
j Judge Holtzoff asserted that the
case falls within the category OF
la utility subject to regulation by
1.-TWO or more States" In such a
situation. he said. mo segregation
is mandatory"