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r-- I MAR 19 1986BOOK 6 P c 973 noted the Commission has stated developers deliberately set low rates to lure people to their development and wished to know if there is any way to prevent this. Chairman Scurlock advised that we now have a franchise agreement which identifies right up front what the rate structure will be and makes sure it is high rather than low because we don't enjoy going through a procedure such as tonight's. As to what was done back in the 50's and 601s, we have to work within the legal parameters we are given. Mrs. Fletcher felt it is apparent that the Commission already has decided the requested increase is justifiable; so, she did not see the purpose of everyone coming to this meeting and stating their feelings, which she felt is just a waste of time the same as the last hearing. Commissioner Lyons explained that it is possible some fact might be brought out at this meeting that has not been considered and we want to explore all possibilities, and Chairman Scurlock pointed out that the people have enjoyed two years of lower rates just because of that last hearing. Mrs. Fletcher asked what the people could possibly have brought up, and Commissioner Bird informed her that the Board had a hearing on a cablevision franchise in the North County where staff said the rates were justified. At that hearing the people bombarded us with complaints about poor service, outages, etc., and we did not grant the increase but instead put a lot of pressure on the company to improve their service. That same thing could have happened here tonight if the Board had heard the service was that bad. He stressed that governing these rates is not a pleasant activity for the Commission, but unfortunately we have a job and must work under the franchise law, which says the company is entitled to enough money to maintain and operate the system and also to receive a reasonable rate of return. 28