Cap Rock Energy: ALJ Recommendation Received in Rate Case
March 17 2005 - 7:01PM
PR Newswire (US)
Cap Rock Energy: ALJ Recommendation Received in Rate Case MIDLAND,
Texas, March 17 /PRNewswire-FirstCall/ -- Cap Rock Energy
Corporation (AMEX:RKE) announced today that the Administrative Law
Judges ("ALJs") have issued a Proposal For Decision ("PFD") in the
Company's pending rate case, PUC Docket No. 28813. This docket was
instituted by the Staff of the Public Utility Commission of Texas
("PUC") to determine the reasonableness of Cap Rock's rates. Cap
Rock was ordered to make a rate filing, which it did in February
2004. Cap Rock's filing contained a request for a small rate
increase. A hearing was held in October 2004. The PFD recommends a
7.49% rate decrease for Cap Rock. This amounts to an annual revenue
decrease of approximately five million dollars. Several intervenors
had sought rate decreases which were much larger than the
recommendation of the Administrative Law Judges. The recommendation
by the ALJs will be considered by the PUC at an open hearing. The
PUC will render a final ruling which can be appealed by Cap Rock or
any of the intervenors. The final ruling is expected to be issued
by June 2005. David W. Pruitt, Co-Chairman/CEO stated, "While we
are disappointed in the recommendation issued by the Administrative
Law Judges in response to our rate filing, we are not surprised
given the outside forces that were instrumental in the institution
of this proceeding. We feel that our rates and our requested small
rate increase are justified and that our evidence supports that. We
will request that the PUC reject the recommendation of the ALJs and
grant our requested rate increase. We have received ALJ
recommendations in the past which were not in our favor, only to
prevail when the issues were considered by the PUC. We are hopeful
that the same thing will occur here." The ALJs also allowed Cap
Rock to recover most of its rate case expenses, over three million
dollars, and allowed the City of Greenville to recover all of its
rate case expenses. Will West, President, stated, "This litigation
was very costly to the Company and our ratepayers because of the
actions of a small group of intervenors. While we feel that the
recommendation for a rate decrease is erroneous, we are pleased
that the ALJs were not swayed by the intervenors' requests for
large decreases in our rates. We regret that our customers will
have to pay close to four million dollars for a proceeding that
should have been much less costly." Management believes certain
statements in this press release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are made on the basis of
management's current expectations, views and assumptions and are
subject to uncertainty and changes in circumstances. Actual results
may differ materially from these expectations, views and
assumptions. The foregoing information should be read in
conjunction with Cap Rock Energy's filings with the Securities and
Exchange Commission, including, but not limited to, reports on
forms 10-K and 10-Q. Cap Rock Energy Corporation does not intend to
update or revise these "forward-looking statements" to reflect
current or future events or circumstances. DATASOURCE: Cap Rock
Energy Corporation CONTACT: Ronnie Lyon, Vice-President - General
Counsel of Cap Rock Energy Corporation, +1-903-813-0377, or
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