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xy� P`s: min r ^� :a <br />;.a v.a <br />. � �' <br />ra � :� y P`r.�`e� ✓,�. _ _r: x;�;ta .�� { �� k� <br />4 <br />ATTORNEY HENDERSON CONTINUED THAT THERE APPROXIMATELY 160 CUSTO— <br />MERS, MOST OF WHOM ARE LOCATED IN DIXIE GARDENS, AND TREASURE COAST UTILITIES <br />NOW HAS A NEW OFFICE VERY CLOSE TO THIS FRANCHISE LOCATION WHICH SHOULD IN— <br />SURE BETTER SERVICE. <br />ATTORNEY HENDERSON THEN DISCUSSED THE COMPARATIVE STATEMENTS OF <br />OPERATION: SOUTHERN GULF UTILITIES FOR DIXIE GARDENS & WHISPERING PALMS PLANT <br />FOR 1975 AND THE PROFORMA OPERATING COSTS OF TREASURE COAST UTILITIES, INC.,. <br />FOR THE SAME PLANT FOR 1976. HE -POINTED OUT THAT THE SOUTHERN GULF STATE— <br />MENT SHOWS A NET OPERATING LOSS OF APPROXIMATELY $20,000. THIS IS ON THE <br />SYSTEM AS IT OPERATES TODAY WITHOUT ANY IMPROVEMENTS. THE EXPENSES REPRESENT <br />AN APPORTIONMENT OF THE ADMINISTRATIVE EXPENSES OF THE COMPANY AS A WHOLE <br />AND THE STATEMENTS WERE PREPARED IN ACCORDANCE WITH RECOGNIZED ACCOUNTING <br />STANDARDS APPLICABLE TO UTILITIES. HE EXPLAINED THAT FOR THE PRO—FORMA <br />OPERATING EXPENSES FOR TREASURE COAST UTILITIES THEY HAVE PROJECTED TOTAL <br />EXPENSES CLOSE TO WHAT SOUTHERN GULF SHOWS CURRENTLY, APPROXIMATELY $30,000 <br />A YEAR, AND THE REQUESTED RATE STRUCTURE IS INTENDED TO COVER THESE PROJECTED <br />EXPENSES AND PROVIDE A REASONABLE RATE OF RETURN. THEY ANTICIPATE THE PRO— <br />POSED RATE STRUCTURE WILL PRODUCE BETWEEN $35,000 TO $40,000 PER YEAR GROSS <br />REVENUE, WHICH WOULD RESULT IN A NET INCOME TO THE COMPANY OF BETWEEN $5,000 <br />TO $10,000 PER YEAR AND WOULD, HE FELT, REPRESENT A MINIMUM FAIR RETURN TO <br />{ <br />THE COMPANY. <br />j ATTORNEY HENDERSON CONTINUED THAT THE PROPOSED RATE INCREASE DOES <br />REPRESENT AN INCREASE OF APPROXIMATELY 2.4/2 TIMES THE PRESENT RATES. HE <br />AGREED THAT THIS IS A SUBSTANTIAL INCREASE, BUT POINTED OUT THAT IT IS THE <br />FIRST REQUEST FOR A RATE INCREASE IN 16 YEARS AND IN THAT TIME THE INCREASE <br />a IN EXPENSES HAS ALSO BEEN SUBSTANTIAL. HE NOTED AGAIN THAT THEY MUST IMMEDI— <br />ATELY INVEST ANOTHER $70,000 TO KEEP THE SYSTEM RUNNING OR FACE INJUNCTIONS, <br />i <br />AND ITIS -V. T FEASIBLE TO CONSIDER SUCH AN EXPENDITURE UNDER THE PRESENT RATE <br />STRUCTURE, <br />COMMISSIONER LOY NOTED THAT THE SOUTHERN GULF UTILITIES BILLING <br />STATEMENT FOR MARCH, 1976, SHOWS 199 CUSTOMERS IN CONTRAST TO THE FIGURE OF <br />160 STATED BY ATTORNEY HENDERSON. <br />t <br />3 <br />28 <br />