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DEC 111979 nox 4� PACE 249 <br />ATTORNEY ROEN INTRODUCED GERARD MOSIAN, VICE PRESIDENT OF <br />FINANCE AND ADMINISTRATION FOR GENERAL DEVELOPMENT UTILITIES, CHARLES <br />FANCHER, UTILITY RATE CASE COORDINATOR, THOMAS VAUGHN, GENERAL <br />MANAGER OF OPERATIONS FOR THE VERO BEACH AND PORT ST, LUCIE DIVISION, <br />NANCY WILLIAMS, ASSISTANT MANAGER, AND LOUIS MENDEZ, UTILITIES <br />OPERATOR. <br />ATTORNEY ROEN MADE THE PRESENTATION FOR GENERAL DEVELOPMENT <br />UTILITIES. SHE INFORMED THE BOARD THAT THE PRESENT RATES WERE PLACED <br />IN EFFECT IN 1965 AND HAVE NOT BEEN INCREASED SINCE THAT DATE. THEIR <br />FRANCHISE PROVIDES THAT THE RATES CHARGED WILL BE SUCH AS TO GIVE THE <br />COMPANY A SUM TO MEET ALL COSTS OF SERVICES AND INCLUDE A FAIR NET <br />RETURN. MS. ROEN STATED THAT IN 1978, WHICH IS THE TEST YEAR CHOSEN <br />FOR THIS CASE, THE COMPANY LOST $41,753 IN THE WATER DIVISION AND <br />$61,000 IN ITS SEWER DIVISION, AND IT CANNOT CONTINUE TO HAVE A LOSS <br />OF THIS MAGNITUDE EACH YEAR AND KEEP OPERATING. SHE POINTED OUT THAT <br />THEIR RATES ARE CONSIDERABLY LOWER THAN OTHERS IN THE AREA; THEY <br />MERELY WANT TO TRY TO OFFSET A PORTION OF THEIR LOSS, AND EVEN IF THE <br />INCREASE IS GRANTED, THE COMPANY WILL CONTINUE TO LOSE MONEY. <br />MS. ROEN STATED THAT IN EVALUATING THE EVIDENCE PRESENTED <br />THIS EVENING IT WILL BE THE TASK OF THE COMMISSION TO CONSIDER THE <br />AMOUNT OF THE INVESTMENT, THE EXPENSES TO OPERATE THE UTILITY IN A <br />TYPICAL YEAR, THE AMOUNT OF RETURN OF INVESTMENT WHICH IS REASONABLE <br />AND FAIR, THE TOTAL REVENUES REQUIRED TO BE COLLECTED TO MEET EXPENSES <br />AND HAVE A REASONABLE RETURN, AND WHETHER THE -QUALITY OF SERVICE MEETS <br />REASONABLE APPLICABLE REGULATORY STANDARDS. Ms. ROEN STATED THAT <br />THEY BELIEVE THE COMMISSION WILL FIND THE UTILITY MUST RECEIVE THE <br />RATE INCREASE REQUEST. SHE THEN SUBMITTED EXHIBITS TO BE ADMITTED <br />INTO EVIDENCE AS FOLLOWS, WHICH EXHIBITS ARE ON FILE IN THE OFFICE <br />OF THE CLERK: <br />1. - INDIAN RIVER COUNTY MINIMUM FILING, INFORMATION AS SUGGESTED <br />IN ROBERT DONLON'S LETTER OF APRIL 271 1979. <br />2. - SUMMARY OF SYSTEM FACILITIES AND FINANCIAL EXHIBITS. <br />