Evening star., 1954-11-16
|pepco Offers
SAL Million
Rate Raise Plea
Earnings Don't Keep
Pace With Costs.
Commission Told

Potomac Electric Power Co. in
public hearing today launched
its case for a $4.l million in-
crease in gross revenues in the
District after an opening exc
change with Capital Transit Co.
which sought to dismiss the rate
increase petition.
The hearing is being conducted
by the District Public Utilities
Commission and is expected to
last the better part of the week.
Pepco contends that additional
revenues are required in order to
keep pace financially with its tire.
mendously expanding facilities.
The company seeks a $6.25 rate
of return as compared with its
present SIS per cent return rate
"a level that has permitted it
'to keep only just above water"
according to Pepco Counsel T.
Justin Moore.
Another Case Pending.
The rate case actually is the
second currently before the local
utilities commission. The regu.
latory body. in addition to set
Ting the current petition, must
re-hear the Pepco case filed in
1850 but which recently was re-
manded by the courts after three
years litigation. In the latter
case, the commission granted
Pepco $2.6 million increase.
Capital Transit Co.. the chief
challenger in the 1850 case, re-
sumed the challenger role today
at the outset Of the new case.
Transit Attorney F. G. Await
argued that the Pepco petition
should be dismissed. or with-
drawn pending the filing of more
details. Mr.. Await charged that
the Pepco petition lacked SUM-
cient data to enable the transit
company to prepare its case.
Capital Transit is one of the
electric company's biggest Gus
toners.
Transit's motion was met not
only by the objections Of Pepco
counsel but by those of Assistant
Corporation Counsel Lloyd B.
Harrison, attorney for the COM
mission.
Good Faith Questioned.
Mr.. Harrison charged that At
torney Awaits move was "most
frivolous. He questioned wheth-
er it was made in good faith and
/ declared it seemed to him that
Eit was part Of the transit COM
Ipany'S attitude to ''litigate and
delay" wherever possible.
| Mr.. Await, who has tangled
on many occasions with Mr.. Har.
rison, retorted that he resented
the bad faith I. charge. The
transit lawyer added parentheti.
cally that "as usual. Mr.. Harrison
has gone of half-cocked."
Commission Chairman Robert
E. Mclaughlin denied the transit
motion. stating that while the
Pepco rate increase petition was
abbreviated, 1t met the legal re.
quirements and did not preju.
dice the case of the opposition.
AS the power company's first
witness, r. Roy Dunn. president
and director. testified that the
company's rapid growth in kil-
owatt-hour sales since the last
war has i1ecessitated more than
doubling plant investment and
capitalization.
Earnings Held Tagging.
"The company's earnings have
not kept pace with these deyel-
opments." Mr.. Dunn declared.
AS a result, he added, prompt
and substantial rate relief is In.
dispensable to enable Pepco to
finance its constantly expanding
facilities in the area.
With the filing of the local
rate increase petition, Pepco
made similar requests, totaling
an additional $1.6 million with
the utilities commissions in Vir-
ginia and Maryland.
In his opening statement for
Pepco, Attorney Moore criticized
the District regulatory body.
The company's present needs
Tor financial relief, he said, stem
from not only postwar economic
conditions but "a decade of what
can only be termed the applica-
ton OF short-sighted regulatory
policies"
This may seem harsh" he
said, yet we confidently believe
that the commission will be con-
vinced that ! have not stated
the matter too strongly"
Expanding Costs Cited.
Mr.. Moore pointed out that
between 1947 and 1853, the com.
pany invested $l22 million in
expanding its plant, and exc
poets that in the next four
years another s100 million in.
vestment will be required.
The latter sum. he said. sim.
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