04-A TXU Gas Statmt of Intent - Laserfiche WebLink

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SUMMARY OF TESTIMONY Witness: Gan/L. Goble Background: Received Bachelor of Science degree in 1974 and a Master of Business Administration degree in 1980. Employed by the Arkansas Public Service Commission from 1974 to 1978, including serving as Chief of Rates. Employed by the Public Utility Commission of Texas from 1978 to 1980 as Manager of Electric and Water Rates. Became a consultant for the firm of Gilbert Associates in 1980 and became a Manager in the firm's Austin, Texas office in 1981. Became a principal in the firm of Management Applications Consulting, Inc. in 1984. Previously testified before the Railroad Commission of Texas, the Public Utility Commission of Texas, and other regulatory or municipal agencies. Purpose of Testimony: Present and demonstrate the reasonableness of (1) the adjustments to volumes, customers and revenues resulting from the impact of the weather normalization and year-end customer adjustments; (2) the development of test year Maximum Daily Usage by class; (3) the development of allocation factors; (4) the development of the class cost of service study computations; (5) the development of the proposed rates; and (6) the development of the proposed miscellaneous charges. Sponsors Schedules J-l, K-1 through K-7, and L-1 through L-3. Co-sponsors Schedules A and A-I. Key Points/Issues: 1. Company made adjustments to sales and customers to reflect changes in the number of customers occurring during the test year so that costs and revenues related to changes in the number of customers are presented at a level that more accurately depicts the anticipated costs and revenues during the period in which rates will be in effect. 2. Because gas sales to Residential and Commercial Sales customers are greatly influenced by temperature conditions, the test year sales volumes used as the basis for setting future rates for those Goble - Summary of Testimony Page 1 of 3