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one of the reasons why I think title II is important in connection with title I. Title II has other matters to commend it besides that, but it does seem to us it would be most unfortunate if you were to enact legislation that would strike down the bars that now surround those operating companies, in these groups all over the country, and leave the operating companies to integrate in the interest of the financial center in New York and in Chicago, and not in the public interest. And it is that that we are attempting to accomplish through title II.

Now, if you will bear with me for a minute, I should like to make reference to the previous consideration given to this matter by the Congress.

First, I wish to refer to the Simms bill, H. R. 12776, introduced August 19, 1918. This bill contained no provision for the regulation of rates. It was a war measure intended to give the Government authority to require physical connection and the pooling of power resources for war uses. The bill authorized the Government to construct properties, to loan money for the construction of properties, to compel physical connections, and to take over properties if and where that was necessary.

Next was Resolution No. 80, under which hearings were held to consider appropriate legislation to regulate the transmission of electric energy in interstate commerce. Hearings were concluded in connection with this feature of that resolution on March 5, 1930, out of which grew the Couzens bill, to which I shall presently refer.

Next was Senate Resolution No. 83, passed in 1928, which authorized the Federal Trade Commission to make an investigation of the electrical industry, about which Colonel Chantland testified yesterday.

Next was the Couzens bill, S. 3869, introduced March 12, 1930.

Next was the Parker bill, H. R. 11408, introduced in the House about the same time the Couzens bill was introduced in the Senate.

Next was House Resolution No. 59, adopted January 19, 1932, under which Dr. Splawn made his investigation and report on holdingcompany practices.

Senator HASTINGS. What happened to the Couzens bill?
Mr. DEVANE. It never passed.

Next was the Executive order of the President, dated August 19, 1933, designating the Federal Power Commission as the agency to make the power survey authorized by section 202 of the National Industrial Recovery Act, approved June 16, 1933.

Next was Senate Joint Resolution No. 74, approved April 14, 1934, authorizing an investigation by the Federal Power Commission regarding rates charged for electric energy.

Now, that presents a rather strong array of investigations and considerations that have been given to this matter in the past, and constitutes, we think, sufficient information upon which the Congress can pass legislation of this character.

I should like to give you a picture of this operating industry. Much of the statistical data that I shall submit has been taken from the preliminary report of the Federal Power Commission on domestic and residential rates in effect January 1, 1935, in cities of 50,000 population and over, and the national power survey interim report of that Commission.

The national power survey was undertaken by the Commission at the direction of the President under the provisions of Executive Order No. 6251, dated August 19, 1933, which is the Executive order I have just referred to. This is the first investigation of its character ever undertaken on a national scale by public authority, and much valuable information is contained therein. The electric-rate survey was undertaken by the Commission as directed by Senate Joint Resolution No. 74, approved April 14, 1934, to which reference was just made.

Copies of these reports have been furnished to each member of the committee.

The preliminary report on domestic and residential rates in effect January 1, 1935, graphically shows the wide variation in the rates in cities of 50,000 population and over in the United States. Supplemental reports will show the variation in rates in all cities and communities in the United States. The national power survey interim report presents an analysis of the relationship between the Nation's power requirements and the generating capacity of existing power plants. It shows by districts the shortages and the surpluses of power that may exist upon a resumption of normal industrial activity.

There are at present approximately 3,500 electric utilities in the United States, of which 1,900 are municipal and 1,600 are private. The 1,900 municipal utilities produce between 4 and 5 percent, and the 1,600 private utilities produce between 95 and 96 percent of the total power produced.

The size of the companies varies from one serving a few customers to one system serving over 2,000,000 customers; from companies supplying a few kilowatt-hours to one supplying over 5,000,000,000 kilowatt-hours annually; from one serving a small community to a system with plants in several States.

The total capacity of electric generators installed at the end of 1934 operated by private and municipal utilities was approximately 33,800,000 kilowatts. About 1,500,000 were operated by railroads and street railways and about 9,500,000 were operated by industry, making a total of 44,800,000 kilowatts.

The power survey interim report covers 412 operating companies, representing companies each of which produce 25,000,000 kilowatthours or more per year. These consist of 21 municipal systems of that size and the 391 private companies combined into 194 operating systems as distinguished from companies. These 215 systems produce about 96 percent of the total power produced in the United States. They operate in round figures an installed capacity of electric generators of 9,000,000 kilowatts in hydroplants and 22,600,000 kilowatts in steam plants.

Relative to the specific question of interstate transmission of power, we have analyzed these 215 systems and have prepared a statement for the year 1933 of the power transmitted across State lines. In the very early days practically no power, or very little power, was transmitted across State lines, but with the expansion of transmission this transfer increased fairly rapidly.

Senator HASTINGS. Will you tell me what you mean by the word “system"?

Mr. DEVANE. Yes. System means several companies that are under one control. Senator HASTINGS. Of a holding company?

Mr. DEVANE. Not necessarily of a holding company. The 215 systems that we are talking about include every municipal plant, every independent plant, and the properties of the holding companies. There are between 70 and 80 holding companies.

Senator HASTINGS. Give me an illustration of what you mean by the word "system". Will you give me a definition of the word " system”? Do you mean one company owning several plants, for instance?

Mr. DEVANE. Yes; that would be a system. Senator HASTINGS. All right. Senator MINTON. Would generation, transmission, and distribution all be in one system?

Mr. DEVANE. Yes; that would all be included in the system. What we are attempting to deal with here is to divide these companies into groups where they belong. If it is a municipal plant owned by a municipality, that is a system. If it is owned by the American Water Works & Electric Co., that is a system. And it may take in there a great many different companies and different plants.

Senator MINTON. All right. Mr. DEVANE. Authoritative data do not seem to go back to 1928, when 10.7 percent of the total power produced was transferred across State lines, and in 1929 it was 11.8 percent. In 1931 it had increased to 14.2 percent, and in 1933 to 17.8 percent. Proper interconnection between these systems would tend to greatly increase the percentage.

I have here a table which shows the amount of energy transmitted into and out of each of the States of the Union, which table I should like to have incorporated in your record.

The CHAIRMAN. That may be made a part of the record. (The three-page_mimeographed statement entitled “Interstate Electrical Energy Transactions during 1933, data taken from reports of 215 systems”, is here made a part of the record, as follows:) Interstate electrical energy transactions during 1933

(Data taken from reports of 215 systems]

Thousands of kilowatt-hours

Region and State



Energy 1
available Received
for sys- from out-
teins side of

cent of

cent of State

energy the State


avail. tion


As per:

As per

Deliv. Delivered ered as outside

ercent of State of gen


Northeast Maine.

759, OCO 756, 000

39 New Hampshire

548, 000 185,000 33, 848 6. 2 18.3 335, 641 61.1 Vermont 389, OCO 136.000 26, 036 6.7 19. 2

298,757 70.8 Massachusetts.

2, 274, 000 2,708,000 872, 238 38.4 32. 2 330, 679 17.2 Rhode Island

442,000 565, 000 270, 964 61.3 48.0 163, 604 37. 1 Connecticut.

1, 032, 0001 1, 116, OCO 136, 150 13. 2 12. 2 49, 224 4.8 1. As the data included in this tabulation are for the 215 large systems only and as they involve transactions with

sınaller systems not included in the tabulation it is impossible to reconcile figures of “Generated", Received", "Delivered", and "Available for systems within State.'


Interstate electrical energy transactions during 1933—Continued

(Data taken from reports of 215 systems)

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New York
New Jersey-
District of Columbia.

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West Virginia

North Carolina.
South Carolina..

Mountain and Plain States
North Dakota..
South Dakota.

New Mexico.

Pacific Northwest

Pacific Southwest

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Total United States..

76,882,000 78, 700,000 14, 569, 466


18.5 13, 968, 792

18. 2

Total & excluding States having

interchange to a minor extent

59, 919, 000 61, 010, 000 14, 175, 407


23. 2 13, 690, 440


2 617,905,000 kilowatt-hours included from Canada.
328,000 kilowatt-hours included to Canada.
• 5,056,000 kilowatt-hours included to Mexico.
6 140,000 kilowatt-hours included from Canada.
6 12,270,000 kilowatt-hours included to Mexico.
7 17,000 kilowatt-hours included to Mexico.

$ States excluded: Maine, Michigan, Florida, Montana, Colorado, Wyoming, Texas, New Mexico, California, Nevada, and Arizona,

NOTE.-Net balance received over international boundaries 600,674.

Mr. DEVANE. Now, the industry will no doubt attempt to minimize the importance of this interstate transmission by a break-down of the 17.8 percent between affiliated companies in holding-company groups and between companies that are not affiliated. The industry claims that only about 1 percent of this power is exchanged between companies that are not affiliated.

Data which have been assembled by the national power survey show that not 1 but somewhere between 3 and 4 percent of the total energy which moves in interstate commerce is between companies that are not in the same holding-company group. To approach the matter from this view point, however, is entirely misleading. The table which I have just submitted for the record shows the percentage of import and export into or out of each State.

I should like to call your attention to a few figures: For example, in New Hampshire there are exports of 61.1 percent of the electric energy generated. Vermont exports 70.8 percent of its energy; Massachusetts imports 32.2 percent; Rhode Island imports 48 percent and exports 37.1 percent; Pennsylvania imports 33.8 percent; Delaware imports 103 percent; Maryland imports 96.3 percent and exports 97.7 percent; the District of Columbia imports 33.6 percent; West Virginia imports 32.8 percent and exports 57.8 percent; Indiana exports 43.2 percent; Missouri imports 44.8 percent; Virginia imports 64.3 percent and exports 74.5 percent; North Carolina exports 30.2 percent; Kentucky imports 57.9 percent; Tennessee imports 67.7 percent and exports 58.3 percent; Mississippi imports 88.8 percent; Alabama exports 38.9 percent; and Georgia imports 30.9 percent.

And I could go on with this list, but you will find that there is a very large percentage of importations and exportations of electrical energy across State lines in many of the States of the Union.

It has also been developed through the power survey that there are 97,000 miles of transmission lines in the United States of between 22,000 and 60,000 volts and 63,000 miles of lines of 60,000 volts and over. These high-voltage transmission lines are used chiefly to tie up different operating properties in the same holding company groups. They are constructed and operated in the interest of the particular company, and, with probably one or two exceptions, are not used for the purpose of providing electrical energy in any given area in the public interest.

In the national power survey interim report, following page 6, will be found a map showing the transmission lines of 60,000 volts and over.

Senator WHITE. Where will I find that map?

Mr. DEVANE. It follows page 6 of that pamphlet entitled “Federal Power Commission, National Power Survey, Interim Report, Power Series No. 1."

Next I should like to direct your attention to the size of the industry and the annual toll collected from the people of the United States for the service rendered. The amount of capital invested in plants devoted to the production of electrical energy as claimed by the industry is, in round figures, $12,900,000,000.

Senator HASTINGS. You say the map shows the transmission lines of 60,000 volts or over?

Mr. DEVANE. Yes. That is only transmission lines of 60,000 volts or more. But we are in process of preparing a map that will show


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