HomeMy WebLinkAboutMinutes - City Council - Public Hearing - 10/17/1978430I
Q C T 17 1978
78-37-4301-1191
*NOTICE OF PUBLIC
HEARING ON PAGE 430K.
PUBLIC HEARING OF CITY COUNCIL ON THE
PROPOSED INDUSTRIAL GAS RATE INCREASE
BY
PIONEER NATURAL GAS COMPANY
October 17, 1978
In accordance with the Supplemental Notice of City Council to continue the above referenced
hearing on this date, said Supplemental Notice being posted October 16, 1978, the above
referenced hearing was called to order at 1:45 P.M. by Mayor Pro Tem Alan Henry, presiding.
Council members present were: Mayor Pro Tem. Alan Henry, Councilwoman Carolyn Jordan,
Councilmen Bill McAlister and M. J. Aderton, City Attorney John C. Ross, Jr., Assistant City
Attorney Don Vandiver, City Secretary -Treasurer Evelyn Gaffga. Mayor Dirk West abstained
from participating in the hearing.
Absent: City Manager Larry Cunningham
Also present, presenting Pioneer Natural Gas Company were:
Mr. M. D. LaGrone, Senior Vice President
Mr. Dennis Gillmore, Senior Consultant, H. Zinder and Associates, Inc., Dallas
Mr. David Culver, Vice President, Amarillo Division
Mr. Vernon Clem, Vice President, Lubbock Division
Mr. Thomas Stephens, Attorney for PNG.
Mr. Stephens introduced into evidence for late filing, PNG's Exhibit V, entitled:
Pioneer Natural Gas Company
Lubbock Distribution System
Revised Industrial Cost of Service
Twelve Months Ended December 31, 1977, as Adjusted.
City Attorney John Ross continued examining Mr. Ervin Looney, Rate Analyst for the
with emphasis on matters of Construction Work in Progressm, as reported by Pioneer;
of accounting used by PNG to reflect items of construction work completed and CWIP,
City Exhibits No. 5 and No. 6 were presented into evidence, entitled:
No. 5. Railroad Commission of Texas
Gas Utilities Division
information Bulletin No. 118
February 10, 1978
No. 6 Uniform System of Accounts for
Class A and B
Gas Utilities
1972
(National Association of Regularoty Utility Commissioners)
City,
and methods
whereby
Under questioning by Mr. Ross, Mr. Looney discussed at length the reserve for future taxes and
the working capital, as reflected in PNG's reports, submitting into evidence City's Exhibits
Nos. 7, 8, 9 and 10, entitled as follows:
No. 7: Pioneer Corporation and Subsidiaries
Consolidated Financial Statements
and Supplementary Information
Years Ended December 31, 1977 and 1976
With report of Certified Public Accountants
No. 8: Consultant's Report
Pioneer Corporation
Pro Forma Capital Structure and
Cost of Capital
No. 9: Tabulation appearing in Business Week
October 16, 1978
No. 10: "Tables Referred to in a Discussion by
Robert E. LaBlanc" (Salomon Brothers,
Stock Research).
Mr. hooney took exception to the testimony of PNG's Financial Officer, Mr. Gholston, , to which
Mr. Stephens, attorney for PNG, took strong objection.
Following a brief recess, Mr. Looney continued his analysis and presentation with respect to
pro forma capital structures used by PNG, submitting into evidence City's exhibits Nos. 11 and
12, to -wit:
No. 11: "A Plan to Shelter Overseas Profits - tabulation:
Business Week, October 9, 1978
No. 12: Pioneer Corporation/1977 Annual Report
Mr. Looney indicated that his analysis and presentation on the subject of depreciation as
reflected in PNG's report would be quite length, and discussion followed among all parties
as to the amount of time required to complete the entire hearing, consisting of Mr. Looney's
continued presentation, cross-examination of Mr. Looney by Pioneer's attorney, rebuttal by both
parties, and closing. Mr. Ross indicated he had two witnesses to present following Mr. Looney's
appearance; Mr. Stephens' response indicated they preferred to cross-examine Mr. Looney and the
two witnesses at the same time segment; that Mr. Looney indicated he would need an extension of
4 30J
OCT 17 1978
time consisting of about two weeks for additional computation necessitated by receipt of
additional data from PNG, to which Mr. Stephens responded they were entitled to comparable
time to evaluate Mr. Looneyls testimony - and those testimonies of the two witnesses to be
presented - and would then be ready to cross-examination all witnesses for the City, hope-
fully completing same in one day's time.
By consensus, it was agreed to have the hearings continue on November 10, 1978 at 8:30 A.M.
and November 17, 1978 at 8:30 A.M.
Meeting adjourned at 5:15 p.m.
Mayor Pro Tem Al n Henry
Attest:
EVELYN GAFFOA
City Secretary -Treasurer
(Notice has been posted as to the respective times the hearings will be continued.)
43DE
78-37-4301-1191
NOTICE OF PUBLIC HEARING
OF
CITY COUNCIL
140TICE is hereby given that on October 17, 1978 at 8:30 A.M. in the
City Council Chambers on the Second Floor of the City Hall, Lubbock,
Texas, a public hearing will be continued, allowing appearances by
any interested or affected parties, and receiving testimony and evidence
from company officials of Pioneer Natural Gas Company and City Staff
members, concerning rates for industrial natural gas service to determine if
existing rates are just and reasonable, and to determine if such rates
should be increased or decreased.
HEREBY CERTIFY that this Notice was posted this 29th day of September, 1978
at 9:00 A.M.
EV LYN GAF WA
City Secretary -Treasurer
430L
.*