26247.pdf

Office of the Secretary
Service Date
November 27, 1995
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
CAPITOL WATER CORPORATION FOR
AUTHORITY TO INCREASE ITS RATES
AND ALTERNATIVE APPLICATION FOR
INTERIM RATES.0 RDER NO. 26247
CASE NO. CAP-95-
On July 11, 1995, Capitol Water Corporation (Capitol Water; Company) fIled an
Application with the Idaho Public Utilities Commission (Commission) for authority to increase
its tariff rates and charges for water utility service. The Company in its principal application
proposed a 25.8% increase. The requested increase was suspended by the Commission so as to
provide sufficient time and opportunity for intervention, investigation and public hearing.
Reference Order No. 26121. Following an expedited hearing in Capitol Water s alternative
Application for an interim rate increase, the Commission approved an interim annual increase
(subject to refund) in the amount of $5,889 (a 2.29% surcharge to residential and commercial
customers). Reference Order No. 26163.
A public hearing on the Company s request for a permanent increase in rates in Case
No. CAP-95-1 was held in Boise, Idaho on October 13 , 1995. The following parties appeared
by and through their respective counsel.
Capitol Water Corporation
Commission Staff
Barton L. Kline
Scott D. Woodbury
Public testimony was also received.
At hearing the parties presented a Settlement Stipulation (see Attachment A) for
Commission consideration as being in the public interest and a fair, just and reasonable resolution
to this case.Reference Commission Rules of Procedure, Rules 272-276.The proposed
Settlement Stipulation was supported by testimony. The testimony of the Commission Staff can
be summarized as follows:
ORDER NO. 26247 - 1 -
Terri Carlock. Accounting Section Supervisor
Ms. Carlock reviewed the Settlement Stipulation between Capitol Water
Corporation and the Commission Staff and presented the capital structure
and costs for Capitol Water used in the Stipulation.
Under the Settlement Stipulation:
Rates will be set to recover additional revenues of $26,533 above 1994 adjusted
base revenue levels.
Capitol Water agrees that it will install meters to measure flows
from all of its wells.
Capitol Water will adequately document vehicle expenditures by
vehicle.
Capitol Water will institute reasonable procedures to maintain
written records of all customer inquiries and complaints it receives.
Capitol Water will continue to promote water conservation efforts.
Capitol Water will restructure its capital financing to more
accurately reflect its debt.
The Stipulation establishes fair and reasonable rates for Capitol Water
customers. It also implements improvements with the Company s record-
keeping practices and operations without litigating the arguments and
concerns during the hearing.
The revenue increase recommended is based upon a 12 percent return on
equity, with an overall 10.78 percent rate of return. The agreement
based upon a capital structure of 51.79 percent debt and 48.21 percent
equity.
Kathy L. Stockton. Utility Auditor
Ms. Stockton presented the results of the Commission Staff's audit of
Capitol Water. These results reflect the operating expenses, rate base
revenue requirement, effective tax rate and net-to-gross multiplier
calculations. Based on the audit, the rate base, using a 1994 test year
adjusted for 1995 known and measurable changes is $597 276. The
revenue requirement is $407,247, and the revenue deficiency is $26 533.
ORDER NO. 26247 - 2 -
Don Oliason. Utility Engineer
Mr. Oliason reviewed the general design of the water system and its
operational problems, discussed customer metering and supported the new
rates agreed to in the Settlement Stipulation.
He concluded that:
The water system is properly designed and is adequate to serve
existing customers.
The pressure problem encountered this past summer will be
improved by the return of Well No.3 to production.
The iron problem needs the attention of a consultant.
Installation of residential meters is not cost effective.
Well metering should be repaired and made operational as agreed
to in the Settlement Stipulation.
New rates should be established by adding a uniform, 6.97 percent
percentage to the company s tariffs.
Judy Stokes. Utilities Compliance Investigator
Ms. Stokes discussed the complaints and inquiries received by the
Commission. She recommended that the Company provide information to
customers on water-quality issues and that it continue its efforts to promote
water conservation. Customers need to be aware that the cost to the
company for pumping water from its wells ultimately affects customer
rates. She encouraged the Company to keep a record of complaints it
receives from customers, as required by Commission rules.
Public Testimony
Public testimony was received regarding the high iron content of the Company
water. The customer testified that the Company s water has ruined her clothes and china and that
she is afraid to drink it. The customer contends that the Commission should not grant the
Company a rate increase without requiring it to improve the quality of its water. As testified by
Staff witnesses, the Idaho Division of Environmental Quality (DEQ) reports that iron and
manganese are the source of the discoloration and that neither, under EP A guidelines, pose a
ORDER NO. 26247 - 3 -
health threat. Staff has recommended that the Company hire an experienced consultant. In its
rebuttal testimony the Company suggests that based on preliminary discussions with Ed Squires
of United Water Idaho, the most cost effective solution would be to drill a new well.
COMMISSION FINDINGS
The Commission has reviewed the filings of record in Case No. CAP-95-
including the Application, testimony transcript and proposed Settlement Stipulation.The
Commission commends the parties for their time and effort in negotiating a proposed resolution
to this case.We find the agreements of Company and Staff set forth in the Settlement
Stipulation on rates and other matters to be supported by the record and testimony and to be in
the best interest of the Company and its customers.
The Commission notes that the Company uses a flat fee for unmetered customers and
a minimum bill for metered customers. We find it reasonable given the Company s small size
and annual revenues, for purpose of administrative ease and to also avoid unnecessary customer
confusion for the Company to employ a rounding method in the calculation of flat and minimum
rates. To accomplish this result we approve an estimated increase in annual revenue for Capitol
Water slightly higher than that proposed in the Settlement Stipulation. To do so in this case we
find neither jeopardizes nor violates ratemaking or allocation principles. We approve an increase
of $27 558 or 7.27% and find the resultant rates set forth in Attachment B to be fair, just and
reasonable.We further find a December 1 , 1995 effective date to be appropriate for
implementation of these rates.
Except as adjusted and qualified above regarding the annual revenue requirement and
resultant rates (reference Settlement Stipulation 1)(11 through C) the Commission finds it
reasonable to require the Company and Staff to fulfill the commitments set forth in I)ll)l E through
I of the Settlement Stipulation.
The Commission further fmds it reasonable to require the Company to continue with
its commitment and efforts to improve the aesthetic quality of its water through viable cost
effective means.
ORDER NO. 26247 - 4 -
CONCLUSIONS OF LAW
The Commission has jurisdiction in this matter and over Capitol Water Corporation
a water utility, pursuant to the authority granted under Title 61 Idaho Code and the
Commission s Rules of Procedure, IDAPA 31.01.01.000 et seq.
ORDER
In consideration of the foregoing and as more particularly described and qualified
above, IT IS HEREBY ORDERED that the proposed Settlement Stipulation submitted in Case
No. CAP-95-1 as ajust and reasonable settlement of the issues presented be approved and the
parties are directed to comply with the terms of the agreements set forth therein.
IT IS FURTHER ORDERED that the attached Schedules 1 , 2 and 4 tariff rates for
Capitol Water be approved effective December 1 , 1995. The Company is directed to fIle
conforming and signed tariff sheets.
IT IS FURTHER ORDERED and the Company is directed to continue with its
commitment and efforts to improve the aesthetic quality of its water through viable cost effective
means.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) or in interlocutory Orders previously issued in this Case No. CAP-95-
may petition for reconsideration within twenty-one (21) days of the service date of this Order
with regard to any matter decided in this Order or in interlocutory Orders previously issued in
this Case No. CAP-95-Within seven (7) days after any person has petitioned for
reconsideration, any other person may cross-petition for reconsideration. See Idaho Code 9 61-
626.
ORDER NO. 26247 - 5 -
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
,;( 7 Uday of November 1995.
/Zt~ I~'A
RALPH NELSON, PRESIDENT
MARSHA H. SMITH, COMMISSIONER
ATTEST:
~~
o.~lc~
Myrna J. Walters
Commission Secretary
bls/O-capw951.sw3
ORDER NO. 26247 - 6 -
Barton L. Kline
James D. Hovren
EVANS, KEANE
1101 W. River Street, Suite 200
P. O. Box 959
Boise, Idaho 83701-0959
Telephone: [phone]
Facsimile: [phone]
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Attorneys for Capitol Water Corporation
BEFORE THE IDAHO PUBLIC UTILITIES COMlVUSSION
IN THE MATTER OF THE APPLICATION OF
CAPITOL WATER CORPORATION FOR AU-
THORITY TO INCREASE ITS RATES AND
ALTERNATIVE APPLICATION FOR INTER-
IM RATES
Case No. CAP-95-
SETTLEMENT
STIPULATION
Pursuant to Rules 271-277 of the Commission s Rules of Procedure (IDAPA 31.01.01),
Capitol Water Corporation ("Capitol" or "Company ), and the Staff of the Idaho Public Utilities
Commission ("Staff"), herein collectively referred to as the "Parties , by and through their
respective counsels of record, hereby stipulate as follows:
BACKGROUND
On July 11 , 1995 , Capitol filed an Application with the Commission for authority to
increase its rates and charges for water utility service. At the time of its filing, the Company
requested that if the Commission decided to suspend the Company s Application for permanent
rates , an interim rate increase be implemented.
SETTLEMENT STIPULATION - 1
Order No. 26247
Case No. CAP-95-
Attachment A
On August 17, 1995 , the Commission, in Order No. 26121 suspended the Company
pennanent rate Application, and scheduled the Company s request for an interim rate increase
for public hearing on August 31 , 1995.
At the August 31 , 1995 , public hearing, by bench ruling, the Commission authorized the
Company to implement interim rates in amounts sufficient to recover an interim annual revenue
requirement in the amount of $5 889 , to be collected by way of a 2.29 % surcharge to residential
and commercial customers with an effective date of September 1 , 1995. The Commission bench
ruling was confmned on September 11 , 1995, in Order No. 26163. Since the issuance of the
Order No. 26163 , the Staff completed its investigation of the issues raised by Capitol'
Application. Based on that investigation and negotiations between the Parties, the Parties have
reached an agreement on rates and other matters that they believe is in the public interest and
that implementation of the agreement will result in water rates for Capitol that are fair, just and
reasonable. In conformance with the Parties' settlement discussions , the Parties hereby submit
this Settlement Stipulation to the Commission, and request the Commission accept and approve
the settlement as presented.
ll.
AGREEMENTS
Capitol will increase its rates to recover an additional $26 533 per year over and
above the 1994 adjusted base revenue levels identified in the Company s testimony and exhibits
accompanying its Application.
Staff's proposed adjustments to Capitol's revenue requirement filing in this case
are set out in Attachment No.1 to this Settlement Stipulation.
SETTLEMENT STIPULATION - 2
The spread and design of the rates to recover the increased revenue requirement
specified in paragraph A will be in accordance with Attachment No.2 to this Settlement
Stipulation.
The Parties have negotiated this Settlement Stipulation as an integrated document
and recommend that the Commission adopt it in its entirety. The parties will file testimony and
exhibits in support of this Settlement Stipulation. Accordingly, this Settlement Stipulation is
expressly conditioned upon its acceptance by the Commission without modification. To the
extent that the Application and its accompanying testimony and exhibits conflict with the terms
of the Settlement Stipulation, the terms of the Settlement Stipulation shall prevail.
Capitol agrees that it will install meters to measure flows from all of the
Company s wells, and will take those steps necessary to maintain the meters in good working
condition. The Company will consult with the Commission Staff as to the additional metering
to be installed so that the Parties understand the timing of the installation and the metering
configuration that will be implemented by Capitol Water. Should the metering of any well prove
to be impracticable, the Company will notify the Commission in writing. In that event, Capitol
will work with Commission Staff to jointly devise a reasonable alternative method for measuring
the flow from any unmetered well.
Capitol will take those steps necessary to insure that all employees adequately
document, by written receipt and repair bill, the expenses attributable to Company usage of each
of the Company s vehicles. These procedures include but are not limited to identification, on
each gas credit card receipt and repair bill, the vehicle for which gasoline is being purchased
or on which the repairs were made.
The Company will institute reasonable procedures for maintaining written records
of all customer inquiries and complaints received by the Company.
SETTLEMENT STIPULATION - 3
The Company will continue to use its best efforts to promote water conservation
by its customers. Those efforts will include the use of periodic bill stuffers and other reasonable
methods to promote the wise use of water. The Company will consult with the Staff on a
periodic basis to advise the Staff as to the efforts undertaken by the Company to promote water
conservation.
Capitol will move expeditiously to restructure its capital fmancials to more
accurately reflect Company debt. Commission Staff will assist the Company in working with
potential long-term lenders to explain to such lenders the regulatory process and the security of
regulatory assets.
The parties understand that this settlement is not binding on the Commission in
ruling on Capitol's Application in this case.
This Settlement Stipulation shall be binding on the, parties, their assigns, and/or
successors in interest.
I;!t
DATED this day of October, 1995.
CAPITOL WATER CORPORATION
By:
Bmoo ~ A
STATE OF IDAHO, Idaho Public Utilities Com-
mISSIon
By: ~C;;. ~"
:;Jico Woodbury, Deputy Attorney eneral
SE7TLEMENT STIPULATION - 4
CAPITAL WATER CORPORATION
RECONCILIATION BETWEEN APPLICATION RATEBASE AND STAFF RATEBASE
APPLICATION RATEBASE STAFF RATEBASE
PLANT IN SERVICE
12/31/94 $1,811,843 $1,811 843
ADD 1995 ADDITIONS .sz.3&OO ADJUSTMENTS
$1,885,343 $2,004,523
ACCUMULATED DEPR $912,506 $912,506
ADD 1995 DEPR 55.601 ADJUSTMENTS S66.m
$918,107 $845,973
NET PLANT IN SERVICE $967 236 $1,158,550
LESS LESS
CONTRIBUTION IN AID $89.836 CIAC $139,193
DEVELOPER ADVANCES $321.731 DEVELOPER ADVANCES
(g)
ADJUSTED PLANT IN SERVICE $555,669 $566,763
ALLOWANCE FOR WORKING CAPITA
1/8 OF 0 & M $35,908 $30,513 l(i)
TOTAL RATE BASE $591,577 $597,276
(a)ADDITIONS FOR $49,200
$9,200
i.1MOO
$73,400
WELL NO.
WELL NO.
NEW AUTO
The amount for Well No.3 is an estimate. The actual amount for the work performed is available.
The amount for Well No.2 is an estimate. The actual amount for the work performed is available.
The amount for the auto is an estimate. The auto has not been purchased.
(b)ADJUSTMENTS FOR WELL NO.3 ACTUAL
WELL NO.6 ACTUAL
WELL NO.2 ESTIMATE
1994 CONTRACT ACCOUNTS
CORY LANE LOWERING
SADDLE REMOVALS
PERSONAL VEHICLE
$49,183
$9,820
$9,200
$130,864
$11 384
$6,208
($23 979)
$192,680
The actual amounts are for actual work performed on the wells. The wells are
currently in-service and meet the "used and useful" criteria. The 1994 Contract
Accounts represent distribution mains and services that are in-service and
meet the "used and useful" criteria. The amount for the personal vehicle deduction
from Plant in Service represents the personal use portion of the Ford Ranger and the Chevrolet Suburban.(c) ADDITIONS FOR
This is depreciation for additions during 1995.
1995 DEPR $5,601(d) ADJUSTMENTS TO ACCUMULATED DEPRECIATION
Contributions in Aid of Construction are not depreciated, therefore this amount was deducted.
Accumulated Depreciation on Personal portion of Autos is deducted.
Accumulated Depreciation for 1994 Contract Accounts using a 25 year life, half-year convention was added
Accumulated Depreciation for 1995 Well Additions using a 25 year life, half-year convention was added.
(e)
Contributions in Aid of Construction are not depreciated. This Company
figure is net of depreciation.
CIAC
$49,357
$21 449
($2,617)
.(SU6.3).
$66,826
$89,836
(f)
Contributions in Aid of Construction are not depreciated. This Staff
figure is CIAC without an adjustment for depreciation,
CIAC $139,193
(g)
ADDITIONS TO DEVELOPER ADVANCES
This amount includes the 1994 Contract Accounts not previously included
in the developer advances figure.
$452,594
(h)
Company working capital is based on operating expenses of $250,085.
WORKING CAPITAL $35,908(i) WORKING CAPITAL
Staff working capital is based on adjusted operating expenses of $244 106.
$30,513
CASE NO. CAP-95-
ATTACHMENT NO.
PAGE 1 OF 2
CAPITOL WATER CORPORATION
RECONCiliATION BETWEEN APPLICATION REVENUE DEFICIENCY AND STAFF REVENUE DEFICIENCY
APPLICATION REVENUE DEFICIENCY STAFF REVENUE DEFICIENCY
TOTAL RATE BASE $591 577 TOTAL RATE BASE $597 276
RATE OF RETURN - EQUITY 79%
EQUITY EARNINGS REQUIRED $34,582
NETTO GROSS MULTIPLIER 127.88%
RETURN REQUIREMENT ON EQUITY AT 14%$71,462 RETURN REQUIREMENT ON EQUITY INCLUDING TAXE~$44,224
RATE OF RETURN. DEBT 99%
DEBT EARNINGS REQUIRED $26,297 DEBT EARNINGS REQUIRED $29,804
TOTAL RETURN REQUIREMENT INCLUDING TAXES $97 759 TOTAL RETURN REQUIREMENT INCLUDING TAXES $74,028
EXPENSES:ALLOWABLE EXPENSES:
OPERATING EXPENSES $287,266 OPERATING EXPENSES $244,105
TOTAL DEPRECIATION AND AMORTIZATION $59,679 TOTAL DEPRECIATION AND AMORTIZATION $56,702
TAXES OTHER THAN INCOME TAX $32,437 TAXES OTHER THAN INCOME TAX $32,412
TOTAL EXPENSES $379 382 TOTAL EXPENSES $333 219
REVENUE REQUIREMENT $477,141 REVENUE REQUIREMENT $407,247
TOTAL OPERATING REVENUES $380,714 OPERATING REVENUES $380,714
REVENUE DEFICIENCY $96 427 REVENUE DEFICIENCY $26 533
(A)
Staff total return requirement including taxes differs from company application because Staff used a different overall rate of return
than Company; also, Staff grossed up the retum requirement on equity. Staff separated out the rate of retum - equity, and rate of return - debt.
(B)
The Staff Operating Expenses are calculated as follows:
1994 COMPANY OPERATION EXPENSES
ADDITIONAL SALARIES TO BRING TO CURRENT LEVEL
DEDUCTION FOR DISALLOWED EXPENSES
DEDUCTION FOR PERSONAL TRANSPORTATION EXPENSES
DEDUCTION FOR PERSONAL VEHICLE INSURANCE
DEDUCTION FOR LATE POWER CHARGES
DEDUCTION FOR PERSONAL TELEPHONE CHARGES
ADDITIONAL SALARIES
AMORTIZATION OF DEQ REQUIRED 3-YEAR TESTS
(C)
The Staff Depreciation Expense is calculated as follows:
1994 DEPRECIATION EXPENSE FROM ANNUAL REPORT
ADDITION FOR AMORTIZATION OF RATE CASE
DEDUCTION FOR PERSONAL AUTO DEPR. EXPENSE
ADDITION FOR DEPRECIATION ON 1994 CONTRACT ACCOUr
ADDITION FOR SADDLES AND MAIN LOWERING
ADDITION FOR DEPRECIATION ON 1995 WELL ADDITIONS
$250,085
$4,904
($16,126)
($5 792)
($576)
($123)
($258)
$10,000
991
$244,105
$49,078
$5.000
($1 709)
$2,617
$352
$1,364
$56,702
(D)
This Staff figure is the current year's taxes plus additional property taxes relating to the increase in Plant in Service
from the work done on Well no. 6 and Well No.3, minus $25 for Centennial special plate fee included in vehicle registrations.
(E)
The Company Operating Expenses is calculated as follows:
1994 Operating Expenses
Increase in Salaries
Increase in Electricity costs for Well #3
Reduced rates for Electricity
Application Operating Expenses
$250,085
$24,862
$14 019
($1,700)
$287 266
CASE NO. CAP-95-
ATTACHMENT NO.
PAGE 2 OF 2
CAPITOL WATER CORPORATIc,. .
CAP-95-STAFF PROPOSED RATES
Staff 1994 Pro Forma Revenue Requirement....................
Staff 1994 Pro Forma Operating Revenue.........................
Staff Proposed Increase.........................
$407 247
$380 714
97%
Residential Schedule No., Monthly Flat RatesService Rates Prior to Interim ProposedSize Interim Rates Rates New Rates
- -- -- ----- ----------- - ---------------- --- ------- -------------- - ---- ---- --- --------- --------
3/4"$8.
$9.
$10.
$10.
$8.
$10.
$11.
$10.
$8.
$10.46
$11.
$11.
1/4"
Sprinkler
Commercial Schedule No., Monthly Metered Rates
Rates Prior to Interim ProposedQuantity Interim Rates Rates New Rates
$ /100 cu. ft. $ /100 cu. ft. $ /100 cu. ft.
--- -- ----- --- ------- - - ----------- -------- ------- -------------- --- -- ------ - - ------------ ----
1st 1000 cu. ft.
Next 1000 cu. ft.
Next 2000 cu. ft.
$0.
$0.45
$0.
$0.
$0.46
$0.
$0.
$0.48
$0.
Minimum Charges: The monthly minimum charges for service under
this schedule shall be not less than the following.3/4" & smaller $5.15 $5.1" $7.27 $7.1/2" $10.59 $10.2" $18.34 $18.3" $32.88 $32.
$5.
$7.
$11.
$19.
$35.
Private Fire Sprinkler and Hose Service , Schedule 4
Rates Prior to Interim Proposed
Service Size Interim Rates Rates New Rates
--------------------- - ------------------- -------------------------- ------------------------
10"
$5.
$7.
$18.
$29.47
$45.
$5.
$7.
$18.
$29.47
$45.
$6.
$8.48
$19.40
$31.
$48.
file: water\cap\95-1 rate. dmo 10/23/95
CASE NO. CAP-95-
ATTACHMENT NO.
PAGE 1 OF
Order No. 26247
Case No. CAP-95-
Attachment B
IPUC No. r J Tariff No. r First Revised Sheet No.
CAPITOL WATER CORPORATION
SCHEDULE NO.
APPLICABLE:To all non-metered customers for domestic
use and lawn sprinkling.
Flat rate per month as follows:RATE:
1 II
Base Monthly 3 % Franchise
Rate Tax DEO Fee
10.45
11.66
Total Monthly
Base RateService Size
11.10
12.1 %"
Sorinkling Charge . From May 1 through September 30 the following rates will
be added to the base monthly rates.
Monthly
Sprinkling
Rate
11.07
DEO Fee
Total Monthly
Sprinkling
Rate
11.
3 % Franchise
Tax
Issued: Per Order No. r Effective; r_
CAPITOL WATER CORPORATION
H. Robert Price, President
IPUC No. (J Tariff No. (First Revised Sheet No.
CAPITOL WATER CORPORATION
SCHEDULE NO.
APPLICABLE
RATE
To all Metered Customers
For the first 1 000 cu. feet per monthper 100 cubic feet
$ .
For the next 1,000 cu. feet per monthper 100 cubic feet .48
For the next 2,000 cu. feet per monthper 100 cubic feet
$ .
MINIMUM
CHARGE:The monthly minimum charge for service
under this schedule shall not be less than the
following:
Total
Flat Minimum 3 % Franchise Monthly Minimum
Service Size Charge Tax DEO Fee Charge
%" and smaller . 17
1 ~"11.12.
19.20.
35.36.
Issued: Per Order No. (Effective; (
CAPITOL WATER CORPORATION
H. Robert Price, President
IPUC No. (J Tariff No. (First Revised Sheet No.
CAPITOL WATER CORPORATION
SCHEDULE NO.
APPLICABLE:
RATE:
To all customers who have fire sprinkler systems and/or
inside hose connections for fire fighting purposes.
For service through a separate line for fire fight-
ing purposes, as follows:
Flat Monthly 3 % Franchise Total Monthly
Service Size Rate Tax OED Fee Rate
19.43 20.
31.56 32.
10"48.50.
MISCEllANEOUS: If the installation of a private fire service requires an exten-
sion of the existing mains of the utility, the costs of such
extension shall be borne by the customer.
All private fir~ service shall be equipped with sealed gate
valves or thermal automatic openings.
Meters may be placed on fire services by the utility at any
time, however , metered rates will not apply unless improper
use of water is disclosed. In that event, usage will be billed
to the consumer under rate Schedule No.
Issued:Per Order No. (Effective; (
CAPITOL WATER CORPORATION
H. Robert Price, President