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Houston %tghling & Power Company <br />Page 2 <br />• <br />• It must be emphasized that our Company's ability to maintain its <br />credit rating has been of great benefit to our customers since we <br />have been able to finance our expansion programs on terms more <br />favorable than many other utilities. We have thus been able to <br />keep pace with the area's growing electrical needs and at the <br />same time maintain customer charges that are among the lowest of <br />all of the investor-owned electric utilities in the nation. <br />We estimate that between 60$ and 65~ of the $1.6 billion <br />required to meet our 1978-1980 expansion program may have to be <br />financed through the public sale of Company securities. With <br />such an expansion program facing us, we must be able to offer <br />securities of a quality commensurate with the other available <br />investment opportunities in order to compete effectively for the <br />investors' dollars. Tc do this we must have a record of earnings <br />that will make our securities attractive in today's highly <br />competitive money market, and without rate relief we cannot do <br />this. <br />We are including with this letter a Statement of Intent to <br />change rates for electric service along with the proposed revised <br />rate schedules for the Company's Tariff and the rate filing <br />package with supporting testimony that has been filed today with <br />the Public Utility Commission of Texas. We have requested that <br />the new rates become effective on August 21, 1978 and apply to <br />• all service taken by each customer on or after that date. A <br />simultaneous filing of Statements of Intent is being made with <br />all of the municipalities exercising original jurisdiction over <br />the Company. The rate increases sought in each municipality and <br />in the rural areas under the direct original jurisdiction of the <br />Public Utility Commission are uniform for each class of customer <br />throughout the Company's service area. <br />We regret that a rate increase is necessary; however, we are <br />pleased to report that your rates will continue to be among the <br />-- ~ lowest in the United States. It is a privilege to serve your <br />City and it will be our objective to keep our rates at the lowest <br />possible level consistent with good service and sound operations. <br />Yours very truly, <br />Enclosures <br />HOUSTON LIGHTIN~/& OWER COMPANY <br />' / /~~2~ <br />Li <br />istrict Manager <br />• <br />