1977-01-24 Special Meeting - Laserfiche WebLink

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Mr. David F. Webb -3- January 6, 1977 7) This reason states that the props ed rates should be accepted as they are in order to be fair to the customers. I cannot accept the statements made here both because I do not think the rate structure gives accurate economic signals to users and because of talks with architects about the relative efficiencies of gas and electric appliances. 8) The Company asserts that the adjustment clause is necessary to compensate the Company for increases in the cost of providing service. Again, this clause is not reasonable unless there are some checks put on the adjust- ment and unless the adjustment is based on a reasonable formula. 9) The Company claims that the City Council need not take any action to have these rates go into effect. Here Entex offers to prepare and present a rate study only on the basis of the distribution system serving that particular city. Under Section 22 of the PUR Act, a municipality may consider a public utility`s revenues and return on investment in non-exempt areas when fixing rates and charges. (Under Section 24 the assistance to the gov- erning body need not necessarily be made during a rate hearing.) 10) The statement is made here that the increase was deliberately designed to minimize the impact on customers this winter, because it will not go into effect until May 1, 1977. It would also be to Entex's advantage to not have any more complaints about rates and bills this winter. • Respectfully submitted, [.'' ~~"" Jerlyn Mardis, Utility Coordinator Department of Public Service JER:kt •