Res 1976-055 - Laserfiche WebLink

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, . . 129 I~" ELECTRIC POWER ENGINEERS, INC. P.O. Box 9970 College Station, Texas 77840 November 8, 1976 REPORT TO THE CITY COUNCIL CITY OF SAN MARCOS, TEXAS I Attached hereto is our report made to you on September 20, 1976. In line ,..ith the recommendations made in that report and approved by you, we have had additional meetings with LCRA personnel and with their consultants. We went over with them our analysis of their records and our conclusions. They countered with some revised records and conclusions differing somewhat from ours. In each case that our interpretation of the records or our numbers differed from LCRA's, we have evaluated the effect on rates each of these make and the probability that our interpretation would prove correct. Our conclusions are the same as made in our September 20 report. They are as follows: (1) For the test year, LCRA's rates charged the citizens of San Marcos were higher than justified. (2) The rates proposed by Gilbert Management Consultants in their report of October 28, 1975 and unofficially offered the City, are also higher than can be justified. Our recommendations are: I (1) Advise LCRA that the City is unwilling to' accept any future electric rate schedules wherein the rates are adjusted in accordance with changes in the Wholesale Commodity Price Index of the U.S. Department of Labor. (2) Advise LCRA that the City will approve electric rate schedules, if strn- mitted by LCRA, which will reduce the electric rates, exclusive of fuel ad- justment charges, for the test year period of fiscal year 1976 by 13.1% spread evenly across the rate schedules. (3) Advise LCRA that the City will adopt electric rate schedules, if new schedules are not submitted by LCRA, which will reduce the electric rates, exclusive of fuel adjustment charges, for the test year period of fiscal year 1976 by 13.1% spread evenly across the rate schedules. .