Central and South West Corp. President and CEO Dick Brooks is "extremely disappointed" with a proposed decision by an administrative law judge to increase annual revenues of its subsidiary, Central Power and Light Co., by $7.2 million. CPL in November 1995 had asked for a $71-million hike in retail rates.
A significant factor contributing to the difference is that the judge recommends reducing return on equity from 12.25 percent to 10.9 percent, which would reduce the rate increase by $30 million. Also, the judge recommends rejecting CPL's request to change the method of recovering deferred accounting costs for the South Texas Nuclear Project from a mortgage method to a straight-line method, which would further cut rate relief by $14 million. (em LB
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