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1 miramar beach resort and bungalows project 2 - Santa Barbara ...

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1 you will pay at a higher cost," based on a rate<br />

2 structure that we're currently considering.<br />

3 That higher cost is the water we purchase<br />

4 from a different source, supplemental water, to serve<br />

5 not just the Miramar but all our customers because usage<br />

6 district wide is very, very high at the moment. And we<br />

7 have to go out <strong>and</strong> find these supplemental sources.<br />

8 MR. BIERIG: Why was the highest number used<br />

9 as the baseline number?<br />

10 MR. MOSBY: The highest number was used<br />

11 because it reflected the typical use back then towards<br />

12 the closure. And again, we've looked at the numbers at<br />

13 the Biltmore; we've looked at the numbers at the<br />

14 Miramar. And they've kind of creeped up a bit, <strong>and</strong> yet<br />

15 at the same time, we're now seeing them starting to<br />

16 backslide, at least at the Biltmore. So we used the<br />

17 highest number reflected in usage for that moment. We<br />

18 felt that that was in our best interest. We took that<br />

19 into consideration <strong>and</strong> made a conservative estimate.<br />

20 MR. BIERIG: You feel that that baseline<br />

21 number is fair, <strong>and</strong> I use "fair" in a context of fair to<br />

22 the other rate payers in your district.<br />

23 MR. MOSBY: Absolutely, absolutely.<br />

24 MR. BIERIG: Commissioner Gottsdanker.<br />

25 MS. GOTTSDANKER: Mr. Mosby, you just made a<br />

91

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