Laserfiche WebLink
<br />'. <br /> <br />. <br /> <br />. <br />Touche Ross & en <br /> <br />.-. <br />.... <br /> <br />-. <br /> <br />April 15, 1977 <br /> <br />Mr. David Webb <br />Leonard, Koehn, <br />Suite 105 <br />6330 West Loop <br />Houston, Texas <br /> <br />Rose & Webb <br /> <br />South <br />77401 <br /> <br />Dear Mr. Webb: <br /> <br />At your request we are submitting this proposal to assist the <br />Ci ty of La Porte in evaluating the present rate application by <br />Entex, Inc. Our proposal is based upon the City obtaining financial <br />data for inside the City limits in the same format as Exhibits 5, 6 <br />and 7 filed for the integrated distribution system in the letter <br />sent to the City of La Porte from Entex Inc., dated April 11, 1977. <br />Our scope of assistance will include the following phases: <br /> <br />~ Phase I - Preliminary Analysis <br /> <br />Our preliminary analysis will include the following steps: <br /> <br />1. Trace actual results for the test year for the City of La <br />Porte to appropriate source documents. <br /> <br />2. Review the reasonableness of the pro forma adjustments to <br />the test year. <br /> <br />3. Analyze the adjusted value of invested capital proposed <br />by Entex, Inc. in providing service inside the City <br />limits of La Porte. <br /> <br />4. Review the allocation procedures employed by Entex, Inc. <br />in allocating investment and expenses inside the City <br />limits of La Porte. <br /> <br />. <br /> <br />5. Determine the rate of return on common equity requested <br />by Entex, Inc. and calculate effect of alternative <br />returns on revenue requirements. <br /> <br />6. Meet with City officials to discuss our preliminary find- <br />ings and determine future course of action. <br /> <br />2001 BRYAN TOWER - SUITE 2400 - DALLAS, TEXAS 75201 - (214) 741-3553 <br />