1977-01-24 Special Meeting - Laserfiche WebLink

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~~ • ., ~. Mr. David F. Webb, Director Jerlyn P~ardis, Utility Coordinator Department of Public Service • SUMMARY January 6, 1977 Preliminary analysis of Entex applica- tion for rate increase to the City Council of Shoreacres, Texas, and other Texas cities. My primary objection to this package is the lack of information provided to the City Council. Better and more specific data, presented in a manner easy to understand, is needed before a decision should be made on how to proceed. I would not permit any rates to go into effect on the basis of this package without a formal hearing if I were a councilman in one of the cities involved. COMMENTS In accordance with my philosophy of cost-based rates, I tentatively favor an increase in the minimum monthly bill if the cost justifies such increase. However, I believe that the minimum monthly bill should conform entirely to the theory that is presented later in the package and not just partially con- form. Further, I believe if the rate structure is to be changed and the mini- mum monthly bill is to be increased, then the rate structure should be made an entirely flat one and not continue to be a declining block structure. I will not go into the arguments for the flat structure here, because I believe you are familiar with them. Before commenting on the purchased gas adjustment provision in detail, I will need to study it further. I would also like to see a formula and an exmaple of how the provision is to work. I will note, however, that there is no pro- vision for filing this adjustment or its calculation with the City Council for approval or disapproval. Also, there is no provision for refunding over- collections. The cost of service adjustment provision is unacceptable in its present form. The Council has no option to approve or disapprove this adjustment, and the adjustment and calculations are not filed with the Council. Also, the expenses and revenues involved will be those reported to the Railroad Commission of Texas; these, of course, will be prepared by Entex. Under Entex's proposed cost of service adjustment, it appears that no one reviews the adjustment and no one approves it other than the Company. I think this is an oversight which needs to be corrected by requiring regular reports to the City Council with the adjustment subject to disapproval. On the various reasons that Entex gives to justify its increase and the various charts presented as supportive evidence of these reasons, I will comment indi- vidually. •