1983-07-20 Public Hearings and Regular Meeting

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July 5, 1983 a • Page 2 11 Chairman and Marsha Gardner, Director of Public Utilities of Houston will serve as Vice -Chairman. The Steering Committee may be expanded to obtain a broader representation. If any of your city officials wish to volunteer their services on the Steering Committee, please advise. The Steering Committee subsequently decided to hire the firms of Hess & Limm of Washington, D.C. and Ben Johnson & Associates of Tallahassee, Florida to work as the cities' rate consultants. Both firms have extensive experience in utility rate cases across the nation including effects of the AT&T divestiture. Don Butler and Grace Hopkins Casstevens of Austin, Galen Sparks, Assistant City Attorney of Dallas, and other city attorneys who can volunteer will act as attorneys. The city representatives also heard a status report on lawsuits involving Southwestern Bell rates. Over the past year the Cities and the Attorney General's office have been involved in extensive litigation brought by the company through appeal of its 1982 rate case. A favorable decision in the district court was obtained by the Cities and Attorney General on July 2. . Also discussed was the "access charge" case instituted by the PUC, which is to be heard August 1, 1983. In order to present an effective rate case, it will be necessary to have the financial support of all cities served by Southwestern Bell. It is the request of the Steering Committee that each such city pay 4� per capita (based on 1980 population figures) to defray the cost of the case. Any excess collections will be refunded upon the final determination of the case or held as a reserve for the next case. Approximately $35,000 remains on hand from the prior case. This case will be much more complex and costly than prior cases. Prior cases have cost approximately $150,000 each, including around $120,000 for consultants, $20,000 in attorneys fees and $10,000 for other expenses. Appeals by the company have added to these costs. Enclosed is an authorization for your city's participation in the case. Please return (with your check payable to TML-SOUTHWESTERN BELL RATE CASE TRUST FUND) as soon as possible so that your city can be a part of this vital effort. Please forward this information to your city councils and all interested officials of your city. 0