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MAY 2 1984 BOOK <br />THE CHAIRMAN CALLED FOR THE QUESTION. <br />The Motion was voted on and carried <br />unanimously (4-0). <br />56 `PAGE $5G <br />HUTCHINSON UTILITIES, INC. - FINAL ORDER RE RATE INCREASE <br />REQUEST <br />The Board reviewed the following memo dated 4/30/84: <br />TO: The Honorable Members of thpATE: April 30, 1984 FILE: <br />Board of County Commissioners <br />THROUGH: <br />FROM: <br />1GHT, <br />INISTRATOR <br />TerrIA40W) <br />Utility Services <br />SUBJECT: FINAL ORDER — <br />HUTCHINSON UTILITIES, INC. <br />°, REFERENCES' A) Consultant's Opinion <br />Director B) Final Order <br />DESCRIPTION AND CONDITIONS: <br />The Board instructed the Utility Staff to hire a consultant to <br />evaluate the request for a change in rates requested by Hutchinson <br />Utilities, Inc., on January 18, 1984. <br />This consultant, Mr. Warren E. Silverman, has evaluated and reviewed <br />the books and records of Hutchinson Utilities, Inc. His findings <br />are attached as Exhibit "A". <br />ALTERNATIVES AND ANALYSES: <br />Consultant is of the opinion that the requested rates are fair <br />and reasonable; the rate of return shall be 12.44% which includes <br />an unweighted return on equity capital of 15.7%; that the <br />authorized rate of return be applied to the net rate base of <br />$217,368; that the Utility is authorized to design tariffs so as <br />to generate $222,652 in gross wastewater revenues from customers <br />enrolled as of December 31, 1983; and that the Utility be permitted <br />to include in its allowable costs rate case expense deferred in the <br />current case amounting to $17,835. <br />RECOMMENDATION: <br />Staff recommends that the consultant's opinion and final order <br />be accepted by the Board and that the Board authorize the Chairman <br />to sign the attached final order(Exhibit "B"). <br />54 <br />-r <br />