HomeMy WebLinkAboutMinutes - City Council - Public Hearing - 11/10/1978430M
N 0 V 10 1978
PUBLIC HEARING OF CITY COUNCIL ON THE
PROPOSED INDUSTRIAL GAS RATE INCREASE
BY
78-37-43OM--1192 PIONEER NATURAL GAS COMPANY
*NOTICE OF PUBLIC
HEARING ON PAGE 430"0". November 10, 1978
In accordance with the Notice of City Council to continue the above referenced hearing on this
date, said Notice being posted October 19, 1978 at 10:00 A.M., the above referenced hearing was
called to order at 9:45 A.M. by Mayor Pro Ten Alan Henry, presiding.
Council members present: Mayor Pro Tem Alan Henry, Councilwoman Carolyn Jordan, Councilman
M. J. Aderton and Councilman Bill McAlister, City Manager Larry Cunningham, City Attorney
John Ross, Assistant City Attorney Don Vandiver and City Secretary -Treasurer Evelyn Gaffga.
Present for Pioneer Natural Gas Co.: Tommy Stevens, Attorney, Dennis Gillmore, Senior
Consultant, H. Zinder & Associates, and M. D. LaGrone, Vice President for Pioneer.
Mayor Dirk West abstained fvom participating in this hearing.
Mr. Vandiver continued examination of Ery Looney, Rate Analyst for the City, during which
examination Mr. Looney submitted into evidence City Exhibit #13, reflecting new evidence and
computations affecting the rate base, the exhibit consisting of the following component parts:
Pioneer Natural Gas Co., West Texad Division
Cost of Service Attributed to Industrial Consumers
Test Year Ended December 31, 1977
Pioneer Natural Gas Co., West Texas Division
Cost of Service by Customer Class
City Staff Recommended Allocation Factors
for Test Year Ended December 31, 1977
City Staff Adjustments to
Pioneer Natural Gas Co.
West Texas Distribution System
Cost of Service by Customer Class
Classification of Plant
for Test Year Ended December 31, 1977
City Staff Adjustments to
Pioneer Natural Gas Co.
West Texas Distribution System
Cost of Service by Customer Class
Classification of Cost of Service
for Test Year Ended December 31, 1977
City Staff Allocations and Adjustments
Pioneer Natural Gas Co., West Texas System
Classification of Cost of Service by Customer Class
for Test Year Ended December 31, 1977
Pioneer Natural Gas Co.
West Texas Distribution System
Allocation of Cost of Service Components
for Test Year Ended December 31, 1977
City Staff Recommendation
Pioneer Natural Gas Co.
West Texas Distribution System
Return on Invested Capital
West Texas Division
Pioneer Natural Gas Co.
West Texas Production Gathering and
Transmission and City Gate Plant Invested
Capital and Adjusted Value of Invested Capital
for Test Year Ended December 31, 1977
Pioneer Natural Gas Co.
West Texas Distribution System
Invested Capital and Adjusted Value of Invested Capital
for Test Year Ended December 31, 1977
Pioneer Natural Gas Co.
Computation of Income Taxes
for Test Year Ended December 31, 19//
Pioneer Natural Gas Co.
West Texas Distribution System
Computation of Revenue Taxes
for Test Year Ended December 31, 1977
The referenced exhibit was the City's recomputation of the document submitted by Mr.
Gillmore, referred to as Pioneer Natural Gas Co. Exhibit #3, having discussed with Mr. Jack
Huber, the use of this exhibit as a basis for establishing the rate base, with Mr. Huber's
concurrence. At this point Mr. Looney referred to various items appearing in Mr. Gillmore's
report that were incorporated into determining the gas rate, which should have been omitted,
in Mr. Looney's opinion, e.g., expenses. The Public Utility Commission indicates total sales
expense not to exceed .3 of 1% of total revenue.
4 30N
N OV 10 1978
Recommended by City Staff." At the conclusion of his presentation of this exhibit, Mr.
LaGrone addressed the council, requesting this case be dismissed in light of Mr Looney's
"Mickey Mouse" dispute over the figures. Mr. Ross objected to the disparaging remarks.
Mayor Pro Tem Henry indicated the Council will not grant Pioneer's request to dismiss,
but did request they file a brief as to their position, and at the appropriate rebuttal
time, they would have an opportunity to bring out these points.
Mr. Stevens responded to Mayor Pro Tem Henry that this was a factual hearing, not a legal
hearing, and the requested brief was inappropriate. However, they would comply with
Council's pleasure and would go along with their request. Mayor Pro Ten Henry overruled
Mr. LaGrone's motion to dismiss, and recessed the hearing for thirty minutes.
The hearing reconvened at 10:30 A.M., with Mr. Vandiver continuing his examination of
Mr. Looney with reference to the gross receipts tax item in Pioneer's exhibit.
Mr. Tommy Stevens addressed the Council and once again moved the hearing be dismissed;
that these matters were of a factual nature, not a legal matter.
Mayor Pro Tem Henry responded that the Council had heard hours and hours of testimony;
that the information submitted today was only a part of the total facts to be considered,
and it would be inappropriate to entertain such a motion.
City Attorney John Ross called as an expert witness Dr. Robert L. Rouse, Professor of
Economics, Texas Tech University. Dr. Rouse was given the oath by the City Secretary -
Treasurer. Dr. Rouse submitted into evidence City Exhibit #15 reflecting his computations and
analysis as to cost of capital, rate base, use of rate base and cost of capital alternatives and
Pro Forma Capital Structure and Cost of Capital of the Pioneer Exhibit #3.
Following his presentation, Mr. Ross indicated that the City had no further witnesses to
present at this time.
Spokesman for Pioneer requested a period of four weeks before continuing the hearing to
allow for reviewing and close examination of the testimony presented today, all of which would
require an additional amount of work for their staff.
Council requested that at the next session all matters be concluded-- cross-examination of
Mr. Looney and/or Dr. Rouse, by Pioneer staft, rebuttal by both Pioneer and City, and
closing arguments for each side.
In light of the pending West Texas Distribution System case (residential gas rate)
pending in early January, 1979, the Council suggested the hearing continue on December
14, 1978 at 2:00 p.m., and at 8:30 A.M. on December 15, 1978, with all parties making every
effort to conclude their respective presentations, and request Pioneer's consent for
continuance of the System -wide case in January, should these proceedings not be concluded.
-j"The tapes reflect no affirmative commitment was made by PNG.)
In response to Mr. Stevens' query as to whether or not Mr. Looney would be as cooperative
in supply documentation, facts, and data as Pioneer people had been, he was assured by
Mayor Pro Tem Henry that Mr. Looney would be equally as cooperative.
The hearing adjourned at 2:15 p.m.
Attest:
4Lo J
YN FFGA
City Secretary -Treasurer
430 0
I!
78-37-430M--1192
3'r13), F?��9
�• ZCYr � ..
NOTICE OF PUBLIC DARING
OF
CITY COUNCIL
NOTICE is hereby given that on November 10 and November 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.
I HEREBY CERTIFY that this Notice was posted this 19th day of October
1978 at 10:00 A.M. ,
J
E ELYN GAF GA
City Secretary -Treasurer
430P
430
r
NOTICE OF PUBLIC HEARINGS
OF
CITY COUNCIL
NOTICE is hereby given that on December 14, 1978 at 2:00 P.M..
and December 15, 1978 at 8:30 A.M. in the City Council Chambers on the
Second Floor of the City Hall, Lubbock, Texas, a public nearing 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 in-
creased or decreased.
I HEREBY CERTIFY that this Notice was posted this 13th day of
November, 1978 at 10:00 A.M.
00,
E ELYN GAFFG
City Secretary -Treasurer
b-A—LUBBOCK AVALANCHE -JOURNAL ---!`ridgy Morning, December 22,1978
Longtime Official
Of Lubbock Dies
Services for Ervin Paul Looney, 51, of
3605 63rd Drive, a central figure in recent
gas rate hearings as rate analyst for the
City of Lubbock, will be at 2 p.m. Satur-
day at St. Luke's United Methodist
Church here.
Dr. William R. Fleming, pastor, and
the Rev. Elton Wyatt, associate pastor,
will officiate.
Burial with military honors will follow
in Resthaven Memorial Park under
direction of the Franklin -Bartley Funeral
Home.
Looney died at about 3:30 a.m. Thurs-
day at his home of an apparent heart at-
tack. Justice of the Peace Wayne LeCroy
ruled the death of natural causes.
Looney had been a city employee since
March, 1969, when he retired as an Air
Force finance officer and started work
here as internal auditor for the city. He
served as internal auditor until he was
appointed to the newly created position
of rate analyst about a year ago.
Born Sept 2. 1927, in Floydada, he
grew up in Floydada and attended East
fore entering the Army Air Corps during
World War H. He continued with the Air
Force after the war and retired as a cap-
tain in 1969 at Wright -Patterson Air
Force Base in Dayton, Ohio.
City Manager Larry Cunningham said
Thursday that Looney "has been a tre-
mendous asset to the City Of Lubbock
since he's been here. His interest in utili-
ties and utility rates was unbelievable.
"He was quite dedicated toward assur-
ing that consumers and companies both
were treated equitably in rate regula-
tions," Cunningham said. "His loss is
going to be a loss not only to his family,
but to this entire community."
Looney was a member of St Luke's
United Methodist Church.
An active member of the Democratic
Party, he had attended the past three
state Democratic conventions.
Survivors include his wife Maxine;
three daughters, Linda, Celia and Teresa,
all of Lubbock; two sons, Paul and Jack.
Um
both of Lubbock; and brothers, Joe
and Lynn, both of Albuquerque, N.M.,
and Pete of Raft
Texas State Umversity at Commerce be- s