04-A TXU Gas Statmt of Intent - Laserfiche WebLink

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SUMMARY OF TESTIMONY Witness: Stephen J. Houle Background: Received a Bachelor of Science degree in Electrical Engineering in 1977 and a Master of Business Administration in 1979. Employed by Dallas Power & Light in 1977. Worked in Engineering Department, Regulatory Service Department, and Rate Department through 1983. Became Supervisor of Rate Design for Texas Utilities Electric Company in 1984 and Supervisor-Rate and Cost Analysis in 1987. Named Rate Manager in 1990. Assumed responsibility for rates and regulatory affairs for both gas and electric companies in 1998 and was elected to current position of Vice President, Rates & Regulation in May 1999. Purpose of Testimony: (1) Explain generally the purpose of cost allocation and describe the cost allocation study performed in this case; (2) Explain the rate classes and types of services proposed in this case; (3) Describe generally the proposed Tariff for Gas Service. Key Points/issues: 1. TXU Gas is proposing the adoption of a Tariff for gas service that contains rates for all services provided by TXU Gas and the terms and conditions of service under which those services will be provided. 2. TXU Gas is proposing a standard set of rates applicable on a systemwide basis to all customers receiving service from TXU Gas' distribution and pipeline system. For the pipeline, we are proposing two types of service: City Gate Service and Transportation Service. For the distribution system, we are proposing four types of service: Residential Sales, Commercial Sales, Industrial Sales, and Transportation Service. 3. The Company's objective in this case is to move every rate class to 100% relative rate of return subject to no class receiving either a rate decrease or an increase of greater than 10%. In this case, that objective results in Houle - Summary of Testimony (Cost Allocation & Rate Design) Page 1 of 2