Evening star., 1954-11-18
|pepcoCIahl|ls
Income Trails
l0-Yeor Deficiency
Cited by Witness
At Rate Hearing

The Potomac Electric Power
Co.'S earnings since 1914 have
not kept pace with those Of
similar firms throughout the
country, to the tune of an "ac-
cumulated deficiency" over the
1O-year period Of $l7.601, 900.
This. the Public Utilities Com
mission was told yesterday. is
one Of the reasons the company
should be allowed a $5,785, ,000-
a-year increase In charges to
raise its rate Of return on in
vested capital to 61a per cent
annually.
The testimony came from DR..
Ralph e. Badger, Detroit and
New York investment expert,
whom the company had on the
witness stand in its behalf as the
second day Of public hearings in
the board room Of the District
building drew to a close.
Hearing Recessed.
He was followed by H. r. G.
Main, Pepco rate engineer, who
was testifying at 5 pm. when the
hearing was recessed till today.
Mr.. Main said residential
customers will pay about SIG
million Of the proposed increase,
slow voltage commercial" Gus
toners $2,835, 900 and street
lighting" customers $454,00O.
The other $1,346.OOO of the in
crease will come from "high
voltage commercial" customers
and Capital Transit Company's
600-volt direct current service.
16.1 Per Cent Increase.
This, he said, would cost
Capital Transit $146,000 more
than at present-an increase Of
16.1 per cent.
Earlier, Charles L. Carr, Pepco
controller, declared the increase
will merely restore the average
residential rate per kilowatt-hour
to the 1899 level. He insisted
that the average Of all living
expenses in Washington has
virtually doubled since that time.
During this time, he testified
the average revenue paid by
residential customers per kilo-
watt hour has decreased 10 per
cent.
. Attorneys Clash.
/ The hearing was l1ighlighted
by b brief clash between attor-
neys for the power company
| and for Capital Transit Co..
which Is opposing any rate in
crease because of its position as
one Of the power company's larg-
est customers.
F. Gloyd Await, CTC attorney.
demanded that George Bisset.
Pepco senior vice president. pro-
duce work sheets on which his
carefully transcribed testimony
was based.
T. Justin Moore, Pepco attor-
ney, objected that he had found
"abuse" of work sheets made
available to Capital Transit off,
cials during a 1851 hearing.
which led to an increase which
finally has been tossed back to
the utilities commission for re-
hearing by the courts.
Chairman Robert E. McLaugh-
lin of the utilities commission.
cut off the exchange, declaring,
I'VE can waste a lot of time in
this case just fighting the old
war"
Statistics Offered.
Mr.. Carr insisted the power
company's investment in prop
erty and plant will have in
creased by the end of this year
to 142 per cent over 1943. It's
customers, he said. will have in
creased 81 per cent and its kilo-
watt-hour sales. will have in
creased 80 per cent.
He pointed out that I'VE find
that over half our total property
and plant has been added in the
last seven years"
Explaining the 10 per cent de-
crease in "the average revenue
per kilowatt-hour paid by Pep
cos residential customers" he
declared:
'The residential customers to-
| tai electric bill has. OF course,
increased. hut only because he ID
using more electricity each
year"