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• <br /> <br />o~ <br />HOUSTON <br />FRED HOFHEINZ, MAYOR <br />HOUSTON, TEXAS 77001 <br />March 14, 1975 <br />Honorable Mayor: <br />LARRY MCKASKLE <br />JUDSON ROBINSON, JR. <br />JAMES J. MCCONN <br />HOMER L. FORD <br />FRANK O. MANCUSO <br />JIM WESTMORELAND <br />FRANK E. MANN <br />JOHNNY GOYEN <br />CONTROLLER <br />LEONEL J. CASnLLo <br />Please pardon this form letter, but the urgency of this matter requires us <br />to send notice as quickly as possible. <br />As you know, Houston Pipe Line Company, wholly owned subsidiary of Houston <br />Natural Gas Corporation which serves our cities, has applied to the Railroad <br />Commission for an increase in their city gate rate. The increase would be <br />from 75.4¢ to an immediate increase of $1.15 (a 52% increase), with provi- <br />sions for 100% pass through of additional costs (compared to the current <br />65%), which will probably drive the cost of gas up to $1.90 at the city gate <br />rate eventually. In fact, Houston Pipe Line personne] have testified their <br />• gas cost will be $1.40 per Mcf by July, 1975. <br />The City of Houston appeared on March 10 and 11, 1975 to protest the rate <br />increase. The City of Lake Jackson, through its City Attorney, also made <br />an appearance on March 10 and made a statement in protest. We believe there <br />are substantial questions concerning Houston Pipe Line's application. <br />Jonathan Day, City Attorney of Houston, and I conducted clarifying examination <br />of the eleven witnesses presented by Houston Pipe Line in their direct case. <br />We were also able to get the Railroad Commission to postpone cross-examination <br />and any direct case put on by the City of Houston (or any other city) until <br />April 2, 1975. <br />Accordingly, the City of Houston is preparing a case for presentation on that <br />date and we would like to inform you of our progress and have the benefit of <br />your comments. We would like to meet with you, or a representative of your <br />city, on March 25, 9 a.m.,in the Conference Room 4100A, 4th floor,-City Hall <br />Annex, Bagby at Walker Streets, Houston, Texas. Your participation in this <br />matter for the possible purpose of your city filing a statement with the <br />Railroad Commission or jnterven~ng in this case in the interest of your city <br />is urgen•~ly requested.•' <br />Since>~ely, <br />• David F. Webb, Director <br />Public Service Department <br />DFW/ah <br />DAVID F. WEBH <br />Director <br />Public Service Department <br />