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r <br />BOOK <br />Intervener White wished to know what the rates were at <br />the time Hutchinson Utilities acquired the franchise, and <br />Mr. Aiello did not know but stated he would get the <br />information. <br />Intervener White informed the Board that Attorney <br />Micale has some out of town witnesses whom he would like to <br />have present their testimony now. <br />Attorney Micale called Myron Olstein, Director of <br />Municipal Financial Services for Main Hurdman KMG, who was <br />sworn in by Court Reporter Zambataro. Mr. Olstein explained <br />that this particular rate study was initiated while he was <br />Director of Environmental and Municipal Services for Coopers <br />& Lybrand, and he has been retained by them to complete the <br />study in their behalf. Mr. Olstein then outlined his <br />background and qualifications, noting that he has performed <br />more than 30 rate studies mostly involving municipal <br />utilities, i.e., Boston, Detroit, San Francisco, Boca Raton, <br />Naples, Pensacola, etc. <br />Mr. Olstein stated that the rate analysis was prepared <br />based on data and assumptions provided by the management of <br />Hutchinson Utilities, and if events do not occur as assumed, <br />actual results may vary substantially from the projected <br />results. <br />Attorney Micale entered Petitioner's Exhibit B - Rate <br />Analysis prepared by Mr. Olstein. <br />Mr. Olstein explained that he used an end of year rate <br />base and stated that if plant costs should turn out <br />different than their assumptions, a re -computation of the <br />rate base will be necessary. He continued that he applied <br />the used and useful rule allowing 20o for growth; this <br />assumes the plant is fully useful when operating at 80% of <br />design capacity. The calculation of depreciation is in <br />accordance with the procedures utilized by the utilities <br />auditors and their procedures, in turn, were based on NARUC <br />L— <br />43 <br />