Evening Star Newspaper, May 23, 1924, Page 14

HAM SAYS PEPCO WANTS CHEAP POWER Favors Great Falls Project' if Eco- nomically Sonnd, He Tells Committee. CONSUMPTION IS EXPLAINED To Be Cross-Examined by Blanton at Tuesday Hearing. “The Potomac Electric Power Com- pany is vitally interested in the proposition to develop the Great Falls water power, if from the proposed de- velopment power can be secured for its customers more cheaply than from the company’'s own steam plants, when all elements of cost are taken into acgount,” William 1. Ham, presi- dent of the company told the special subcommittee of the House District committee ut the hearing today on the hydro-electric development of the Potomac River. Mr. Ham neither advocated nor op- posed the project, but declared that his company is anxious, if possible, to obtain sufficient information in order to tind out whether the pow veloped from this project co #old to the existing compan t a cost less than the cost of generation by Eteam. “Obviously, if there can be no sav- tng from the use of hydro-electric fower there would not be any bene- fit In t Le He com in possible & sh data which will be helpful in ie consideration of th ubject. Demands of Capital. Mr. Ham pointed out that the Tyler reports shows that the dema the federal and District governments were 63,841,944 kilowatt hours per annum and that the project would mnot be feasible for the purpose of the federal and District governments wlone. “It _has been gratifying to us,” said Mr. Ham, “that th r- ing all the witne distribution of ti continued by local public utilities. Truly, it would be, as was stated by cne of the wi s, an_economic crime to dup system of the Po mpany and compe! company in the distribution of retail pow Mr. Ham urged that when consider- ing the feasibility of water power de- velopment three controlling factors £hould be taken into aceount; the cost of development and delivering hydro-electric power to the consumer; the present-and prospective market for such power; the total saving in uch water power over of power. pressed the opi v appropriate for his com- pany to endeavor to bring to the at- tention of the committee any with regard to the company's Costs o steam production and wha if any, saving will be brought about by the de- Velopment of the hydro-electric power. Soundness Necessary Vhether the hydro-electric project ructed by public or private in- he said, such a project must on that ound and should have sufficient earnings not only to cover the operation costs, but also the in- terest on the investment and sufficient surplus to retire the bonded indebted- ness over a period of years. Tt “matters not whether one be- lieves in public or private ownership of public utiliti he said, “no such project should be undertaken by the government unless it is economically sound and some direct or indirect benefit can be derived by the com- 2. s and the taxpayers fram such an enterprise.”’ & the market for the power outside of Washington, Mr. Ham sug- gested that this be given most care- ronsideration by » committee. e said that he understood that hy- dro-electric development i8 mow being undertaken_on a large by t American Waterworks and Electric Company, or through subsidia Maryland, West Virgin which makes it quite po idro-electric power mcere of these developments ma dclivered into Washington even be- fore the Great Falls project could be completed and at a cost which would be comparable to the power obtained from. this project. He said he als more is already with hydroelectri. Susquehanna River, and that due to a large industrial load and more favor- able freight rates Baltimore can pro- duce nower hy steam at a_cost lower than is possible here in Washington. Susquehanna Project. Mr. Ham told the subcommittee that he is informed that the Federal Power Commission recently granted a permit for another water power de- Velopment on the Susquehanna with an ultimate development of 360,000 horsepower, the principal market for which is undoubtedly to be found in Baltimore There is no large power market south of Washington. Mr. Ham told the committee, until Richmond reached, 116 miles away, which at present’ is partially supplied with power from hydroelectric plants and partially from steam plants. The cost of building transmission 1i to Richmond, with a substation at that ‘would, be financial knew that Balti- partially it is possible that carrying costs of this line, added to the cost of power, sould be too great to sell power from Great Falls in that city Mr. Ham explained how the Potomac Electric Power Company had quired _its _right McCormick Medical Glasses Fitted College Eyes Examined Graduate Dr. CLAUDE S. SEMONES Eyesight Specialist Phone Main 721 409-410 McLachlen_ Bldg. 10th and G Sts. N.W. with that | data | f He explained that in 1902 the Wash- ington Railway and Electric Company had bought a two-thirds interest in those rights for $425,000, which rights were_transferred some years later to the Potomac Electric Power Company for $1,000,000 in stock. The other one- third interest is in the hands of other owners. He emphasized that in purchasing these rights there never was any purpose to strangle the falls as a potential rival of the local corpora- on. _ Mr. Ham explained the revolution in the electrical industry that has re- sulted since the rights at Great Falls were acquired through the turbine, which materially reduced the cost of producing energy by steam. He called the attention of the com- mittee to the fact that the Potom: Electric Power C develop from Great Falls, of Representataive gl of the *ompany. ¢ Electric He said that the rporated in the Dis. 5000 New Accounts Special Values for Decoration Day trict in 1896 to manufacture and sup- ply electric light and power in Wash- ington and suburbs. It owns two plants, the main one at Benning, has an installed capacity of 98,000 kilo- watts and the reserve plant at 14th and B streets, has installed capacity of 3,000 kilowatts. It awns and. operates twenty-five substatighs, six of which are lo- cated on the premises of the custom- ers. .He furnished datailed informa- tion regarding these substations. On December 31, 1923, there were approximately 2,500 miles of cable in- stalled, and the total number of feet of wire on overhead lines was ap- proximately 16,000,000. There were 21,648 poles in service, 75278 meters and 12,165 street lamps on the lines. This company has extended its lines into Maryland within recent years, and s now furnishing current to Chevy Chase, Gaithersburg, G Park, n_Echo. . Kensington, Mount Riverdale, Rockville, Takoma and Washington Grove. ere continued until the equipment in s Tuesday next. when Representative Thomas L. Blanton, Democrat, of Texas, a member of the investigating | committee, has announced his inten- tion of ci xamining Mr. Ham. DROPS OLD INDIAN SUIT. Justice Siddons Dismisses Action for Dividing Arizona Tract. Justice Frederick L. Siddons of the District ‘Supreme "Court yesterday ren- dered an opinion dismissing the suit brought in 1915 in the name of the Pueblo of Santa Rosa, against the Secretary of the Interior and the commissioner of the general land of- fice to remove from the public domain a tract of 720 square miles in Arizona. The case went to the United States Supreme Court on a motion to dismiss and was remanded with directions to afford the government officials an op- portunity to answer the bill. tion to dismiss was renewed by officials, but they also filed answer and the case was submitted after ex tended argument The bill alleged that the pueblo or Indian town had been in e for more than three panish, Mexican and American rule, it being included within the purchase, and was inhabited by Papago tribe. 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