Cap Rock Energy (AMEX:RKE)
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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