GUY W. PERKINS WAYNE L. EVANS WAYNE S. STONESTkEET COLIN M. CLINE ERIC *J. BUCKNER KATZ, KANTOR 8c PERKING, PLLC ATTORNEYS AT LAW PIFTH FLOOR LAW COMMERCE BLDG. 307 FEDERAL STREET P.O. BOX 727 BLUEFIELD, WEST VIRGINIA 24701 - LEROY H. KATZ (ioi7-iou4) NORRIS KANTOR OF COUNSEL TEL. 3041327-3551 TOLL FREE (800)(337-3561 FACSIMILE NO. 304/.325-7405 June 25,2007 Sandra Squire, Executive Secretary Public Service Commission of West Virginia 201 Brooks Street Charleston, West Virginia 25301 Re: Dear Ms. Squire: \ Case Nos. 07-0009-G-42T and 07-0201-G-PC Bluefield Gas Company and ANGD LLC Enclosed please find the pre-filed direct testimony of Mark Heme on behalf of the city of Bluefield in the above referenced matters. Copies have been served on counsel of record. Please file this letter and testimony and provide the twelve additional copies of both to the appropriate parties at the Commission. We also ask that you date stamp the extra copy of the letter provided and return it by mail. As always, we appreciate your assistance in this matter. Sincerely, KATZ, ly KANTOR & PERKINS, PLLC Wayne Evans Enclosure(s) cc: Thomas N. Hanna David C. Smith David A. Sade John Auville Christopher L. Callas
~ 2 Direct Testimony of Mark Henne City Manager City of Bluefield, West Virginia Intervenor Public Service Commission of West Virginia PSA Case Nos. 07-0009-6-42T and 07-0201-G-PC ~ Intervenor - City of Bluefield Exhibit MH - A 3 c2 1. Question: Please state your name and position with the City of Bluefield, W. V. I City Manager. 4 2. Question: What is your educational background and work experience? A) B.S. Xavier University 1970 MCP Ohio State University 1974 International CityKounty Manager Association - Credentialed Manager B) I have been employed as management with (2) two Regional Planning & Development Agencies in WV and VA. Most of which my management experience is through approximately 30 years of leading towns, cities and counties in the Commonwealth of Virginia. 3. Question: What is the purpose of your testimony? I am here today on behalf of the ratepayers of Bluefield, WV to object to the following: A) B) The sale of Bluefield Gas Co to ANGD, LLC. The proposed general rate increase. 4. Question: Have you reviewed the filings by Bluefield Gas Company and ANGD, LLC in Rate Case No. 07-0009-G-42T? 5. Question: Does the City of Bluefield, West Virginia, as Intervenor in the rate case, support or oppose Bluefield Gas Company s request for a rate increase? The City of Bluefield, WV, as intervenor in the rate case OPPOSES
i 6. Question: Bluefield Gas Company s request for a rate increase. What are the reasons in support of the City of Bluefield s position in the rate case? A) Bluefield Gas is expecting an unreasonable rate of r em based on the demographics and economy of our area. B) There is considerable concern over the proposed sale and their ability to succeed and thus maintain an affordable rate. Neither the ratepayers nor the City are up for a Great Experiment. C) The City of Bluefield, as are many small cities, is in a fragile state economically. It is difficult to rebuild this economy with the types of controls imposed by the State, as well as the across-the-board repeated utility increases. 7. Question: Have you reviewed the filings by Bluefield Gas Company and ANGD, LLC in the PSC Case No. 07-0201-G-PC, asking the Commission to approve the sale by RGC Resources, Inc. of the common stock of Bluefield Gas Company to ANGD, LLC? 8. Question: Does the City of Bluefield, as Intervenor, support or oppose the Joint Petition by RGC Resources, Inc. and ANGD, LLC asking the PSC to approve the sale of the common stock of Bluefield Gas Company to ANGD, LLC? OPPOSE. 9. Question: What are the reasons in support of the City of Bluefield s position in the stock transfer case? The City of Bluefield OPPOSES the stock transfer based upon our review of the documentation filed by the Bluefield Gas Co. and ANGD, LLC. The proposed weather normalization adjustment (WNA) and the weatherization program are poorly designed gimmicks that are either not in the best interest of the ratepayer or an insufficient attempt to put a bandaid on the problem. The ANGD, LLC seem to be lacking the necessary capital to make one believe that they can handle the gas operations in the Bluefields. The City of Bluefield understands Bluefield Gas Company s desires to sell due to an underachieving investment. However, they remain a public
utility who has a responsibility not to dispose of the company so as to harm the City of Bluefield andor its ratepayers. 10, Question: Does this conclude your direct testimony?
I hereby certify that a true copy of the forgoing DIRECT TESTIMONY OF MARK HENNE ON BEHALF OF THE CITY OF BLUEFIELD was mailed, postage prepaid this 25fh day of June 25,2007 to: Christopher L. Callas, Esquire, Stephen N. Chambers, Esquire, Counsel, Bluefield Gas Company, Jackson and Kelly, PO Box 553, Charleston, WV, 25322; John R. Auville, Esquire, Public Service Commission; P.P. Box 812; Charleston, WV 25323; David A. Sade, Esquire, Consumer Advocate Division, 700 Union Building, 723 Kanawha Boulevard, East, Charleston, WV 25301; David C. Smith, Esquire, Counsel, S. Bluefield Neighborhood Association, 205 Law and Commerce Building, 307 Federal Street, Bluefield, WV 24701 and Sandra Squire. Executive Secretary, Public Service Commission, P.O. Box 812,201 Brooks Street, Charleston, WV 25323.