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<br /> <br />CITY OF LA PORTE <br /> <br />PHONE (713) 471.5020 . P. O. Box 1115 · LA PORTE. TEXAS 77571 <br /> <br />May 6, 1980 <br /> <br />Mr. Olin G. Humphries, Jr. <br />Southern Pacific Industrial Development Co. <br />913 Franklin <br />P.O. Box 1319 <br />Houston, Texas 77001 <br /> <br />Dear Mr. Humphries: <br /> <br />This is in response to my recent conversation with <br />Mr. Tom Nolan and your letter of request of May 6, 1980, <br />concerning the 4% charge by Houston Light and Power (HL&P) <br />on electrical consumption in our community. <br /> <br />HL&P, like other utilities that operate in La Porte <br />and other cities in Texas, do so under the auspices of a <br />franchise granted by the City. The utilities, as payment <br />for the use of public right-of-way, streets, etc., pay to <br />the City a gross receipts tax. This tax to the utility has <br />been in effect since the granting of the franchise many years <br />ago. And, as a cost of doing business, has been passed on to <br />the utility customers. <br /> <br />This past year HL&P filed a rate increase request system <br />wide that was eventually heard before the Public Utility Com- <br />mission (P.D.C.) in Austin. The P.D.C., in establishing the <br />approved rate schedule for HL&P, required that they display <br />on their monthly customer bills .the gross receipts tax charged <br />the utility by their franchisor. <br /> <br />The City of La Porte is not contemplating the levying of <br />any additional surcharge or tax on electricity consumed by <br />industrial, commercial or residential consumers. <br /> <br />If I may be of further service or provide additional inform- <br />ation, please contact me. <br /> <br />,/l <br />, ' <br />Sincetely, <br />/ / <br /> <br />d R.C>H~dgenS <br />GiCity Administrator <br /> <br />JRH/cb <br /> <br />~_~.~..__.~,__~_'^""~.__.~_~'~'_~"" _M...____'''''__.....____ <br />