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i <br />Howion,lightin~ & Power Company • <br />• Honorable Mayor and City Council <br />City of La Porte <br />Page 2 <br />• <br />e a e o <br />filing and will be subject to refund to the extent there is any <br />difference between the temporary rates and those ultimately <br />approved by the City Council or by the Public Utility <br />Commission of Texas or any court of competent jurisdiction in <br />any appeals resulting from the action of the City Council. <br />• <br />La Porte rates based on the Examiner's Report and Proposed <br />Final Order in Docket No. 2676. The rate schedules will be <br />filed with your City Secretary when they are prepared, but in <br />no event prior to December 5, 1979. Such rates will be <br />effective for all electric service taken after th d t f <br />Enclosed is a draft of a bond in the amount of <br />$20,000,000 as security for HL&P's potential refund obligation <br />by virtue of these temporary rates. You will note that the <br />bond is payable to the Public Utility Commission of Texas and <br />all those municipalities, including your City, acting as <br />"Regulatory Authorities" with respect to HL&P under the Public <br />Utility Regulatory Act. The form of the bond and the surety <br />have been approved by the Public Utility Commission pursuant to <br />Section 43(e) of the Public Utility Regulatory Act. At the <br />Commission's request, the interest rate for any refunds will be <br />equal to the composite cost of capital for HL&P of 10.55% as <br />found in the Examiner's Report in Docket No. 2676. Unless we <br />hear from you to the contrary, we will assume that you have no <br />objections to the bond. <br />Please let us know if you have any questions <br />regarding these matters. <br />Very truly yours, <br />HOUSTON LIGHTING & POWER COMPANY <br />gy <br />i rict Manager <br />Encl. <br />Received and filed this ~ 7` day of November, 1979. <br />• <br />-~~ ..~ <br />City Se retary <br />City of La Porte, Texas <br />