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111 <br />T�: The Honorable Members of th®AiE: April 30, 1984 FILE: <br />Board of County Commissioners <br />II <br />n <br />TNROUGH:IMkGFIk1E GTT, <br />NNiiroli IIIISTRATOR SUBJECT: FINAL ORDER — <br />HUTCHINSON UTILITIES, INC. <br />FROM: Terrilm o RFF�RGhw`S. A) Consultant's Opinion <br />Utility Services Directoi 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 12.449 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 />