1977-01-24 Special Meeting - Laserfiche WebLink

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~; .• • • • • Mayor Holmes #. 2, January 7, 1977 city to hire outside legal counsel, accountants, engineers and other necessary rate expertise and charge these expenses back to the yutility. Normally, in our experience, and from what we understand from ~~.,~aller cities as well, these expenses added to the utility's overal~i operating expenses are very minimal, and well worth the expert analysis, which usually results in the Company resolving its rate demands at a much lower°fi~ure than originally proposed. T'~~e Company claims that the cost adjustment clause is necessary to coripeate the Company for increases in the cost of providing service. Here ~~+ey posit that it is reasonably certain that a change of rates will be needed every year, and so it is to the benefit of the customer, the regulatory authority, and the Company to provide for it without an expensive proceeding. This is only possible if there are some checks put on the adjustment and unless adjustment is based on a reasonable formula. There is no check on this adjustment; the manner in which it is calculated is not reasonable. Further a general rate base, rate of return and rate structure or review by a city at least every two years in these rapidly changing ti~,~r~ of energy policy and usage would be well advised in my opinion as a utilities regulator. If you have any further questions, please do not hesitate to contact me by telephone or mail. We will be glad to answer any questions about this particular rate case and/or the Public Utility Regulatory Act, Article 1446(c). Best wishes to you and your City Council in Shore Acres. Sincerely, V ~ avid F. Webb, Director Department of Public Service City of Houston DF4J/1 m cc: Mayor Fred Hofheinz cc: City Attorney John Dewey Lake Jackson, Texas (per request)