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In addition, actual results in terms of both the revenue require- <br /> ment and revenue collected in the previous year will be deter- <br /> mined and any difference, positive or negative, will be added to <br /> the balancing account. This balancing account balance, in <br /> connection with the determined <br /> projected <br /> revenue <br /> requirement <br /> above, is used to determine whether a rate adjustment is <br /> necessary. <br /> <br /> Review of Performance Data - <br /> <br /> The operating statistics supplied by the Company will be compared <br /> to previous years' statistics to identify unusual trends. <br /> Unusual trends will be investigated to determine their cause and <br /> effect on future cost performance. <br /> <br /> Preparation of Draft Recommendations - <br /> <br /> Based upon the preceding review, the consultants prepare the <br /> · final revenue requirement and recommendations regarding necessary <br /> rate adjustments in a draft report. The report is reviewed with <br /> both the SBTSA and the Company to ensure that there are no fac- <br /> tual errors and that all of the issues have been satisfactorily <br /> addressed. <br /> <br /> Preparation of Final Report and Recommendations - <br /> <br /> The draft report is edited to incorporate any suggestions made by <br /> the SBTSA and the Company and a final report is prepared. This <br /> final report is delivered to the SBTSA. A presentation is made <br /> to the City Councils in situations where a rate adjustment is <br /> necessary. The City Councils review the report, receive <br /> testimony and act upon the requested rate adjustment as <br /> appropriate. <br /> <br />L <br /> <br />L <br /> <br />L <br /> <br />L <br /> <br />L <br /> <br /> <br />