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11/9/1983
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11/9/1983
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Meetings
Meeting Type
Special Call Meeting
Document Type
Minutes
Meeting Date
11/09/1983
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Mr. Morris stated that he would provide actual figures. <br />In further discussion, it was noted that page 109 shows <br />projected connections in 1983 based on 32 additional <br />connections during the first quarter of 1983. <br />Mr. Fancher confirmed that the number contained on page <br />109 is really a multiplication of actual connections as they <br />were during the first quarter of this year. It projects <br />things out to the end of 1983. There were 32 connections <br />during the first quarter and that would mean approximately <br />75 additional customers connected up to this point in the <br />year if that rate had been maintained. <br />Commissioner Lyons commented that replacement of plants <br />in order to bring them up to date had been mentioned, and he <br />asked if that would come out of monies that had been accumu- <br />lated or whether -it was a charge that shows up as expansion <br />and would be carried by existing customers, i.e., were the <br />rate payers asked to carry an additional load because the <br />plants were replaced? <br />Mr. Fancher replied that the plants were financed <br />through a combination of debt and equity and there have been <br />F. <br />several expansions during the years and replacement of <br />facilities as they wear out. The cost of that financing <br />would show up in the cost of capital which does relate to <br />the average cost of providing service. <br />Commissioner Lyons discussed the segment of the rate <br />that is for repair and replacement and wished to be sure <br />that the replacement is not of larger capacity than needed <br />for the existing customers. <br />Mr. Fancher stated that the customers do not pay for <br />additional capacity they do not use. GDU does have a repair <br />and replacement program on-going with the facility to <br />maintain its useful life. There are dollars in there that <br />relate to the recovery of the capital cost of the facility <br />19 <br />N 0V 9 1983 <br />ai c 55 iiu,2554 <br />
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