Page 6/The Battalion/Wednesday, January 9, 1985
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JANUARY
Mayor says city faces little damage from bombings
Pensacola still in race for ship
United Press International
PENSACOLA, Fla. — Despite the
dubious publicity Pensacola has re
ceived lately because of a series of
abortion clinic bombings, a report to
Navy officials looking for a home for
a battleship group admire’s the city’s
tolerant citizens.
Mayor Vince Whibbs, chairman of
the Pensacola Homeporting Com
mission, said Tuesday he doesn’t be
lieve the negative stories will jeopar
dize the chances for the port being
HL&P
PUC sloshes rate request
United Press International
AUSTIN — The Public Utility
Commission, expressing concern
over the planning and management
of the troubled South Texas Nuclear
Project, Tuesday awarded Houston
Lighting 8c Power Co. less than one-
third of the $554 million rate in
crease it sought.
Instead, the three-member com
mission voted to raise HL&P’s an
nual revenues by only $168.2 mil
lion, which would apparently
translate into about a 3 percent in
crease for the utility’s residential cus
tomers.
The PUC rejected a recommenda
tion by its hearing examiner, who
proposed a $271 million rate hike.
Company spokesman Don Beeth
said it was too soon to say whether
HL&P would appeal the order, but
he said the order could spell trouble
for the utility’s future capability.
“We have some serious concerns
about our ability to keep power for
jobs and homes,” he said. “It (order)
is certainly cause for a lot of con
cern.”
Revenues in the rate case were
lowered dramatically when the com
mission decided not to allow HL&P
to include $617 million in STNP
construction costs because the com
pany failed to prove the plant — as
required by state law — had been ef
ficiently and prudently planned and
managed.
HL&P is the managing partner in
the nuclear plant under construction
at Bay City.
The plant was originally forecast
to cost $1.4 billion and be completed
in 1980, but estimated construction
costs have soared to $5.5 billion.
Unit 1 is expected to go on line in
1987.
Police shot at during
attempted drug bust
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United Press International
SUGAR LAND — Two under
cover police officers were assaulted
and shot at early Tuesday during
what was supposed to be a cocaine
purchase and drug bust, authorities
said. _
A Fort Bend County major crime
task force officer and a Rosenberg
oliceman were treated for cuts and
ruises after being assaulted about
12:35 a.m. Tuesday, said Jim Flagg,
task force director.
Police said two Sugar Land broth-
chosen as home of the USS Wiscon
sin.
Whibbs said the bombings were
isolated cases and Navy officials he
talked to recognized it as such.
The executive summary of the
101-page report Pensacola officials
gave to the Navy last week says Pen
sacola is “a tolerant, sophisticated
community which can extend its wel
come to a contingent of Navy men,
women and families, of fering them a
family oriented homeport city that is
safe and delightful.”
PUC Chairman Philip Ricketts
told reporters that HL&P and its
customers would probably have
been better off if the STNP had
never been started. But he added,
“The problem right now is dealing
with it as it is.
“I’m very concerned about the re
cord as it reflects on the progress or
lack of progress in the construction
planning on this project.”
Jim Boyle, director of the state
Office of Public Counsel, said he
thought the rate increase was “too
high.” Boyle’s office, which rep
resents residential ratepayers, had
recommended an $85 million rate
decrease.
“The ratepayers should not be
paying for mismanagement,” he
said.
The commission ordered autho
rized HL&P to earn 16.3 percent re
turn on its common equity, but Boyle
said the earnings level should be
lower because customers should not
have to bear the increased risk asso
ciated with STNP.
Because of HL&P’s management
record, the PUC voted against au
thorizing a portion of the rate hike
for an “executive bonus” plan.
Although the company appears to
be doing a better job of manage
ment, Commissioner Peggy Rosson
said she could not support an incen
tive and bonus program for man
agers.
The commission also agreed to
conduct hearings on the economic
feasibility of STNP’s Unit 2, which is
about 40 percent complete and
scheduled tb be operational in 1988
or 1989.
Other partners in STNP include
Central Power & Light Co. of Cor
pus Christi and the cities of Austin
and San Antonio.
ers in their early 20s and a third sus
pect approached the undercover of
ficers and offered to sell them
cocaine. But police said they do not
know whether the suspects ever in
tended to deliver cocaine because
none was found.
After allegedly assaulting the offi
cers, Anthony Ray Kaiser and the
unidentified man fled on foot, au
thorities said. Glen Kaiser then ap
peared and fired two to four shots at
the officers with a .22 caliber pistol,
police said.
The report includes charts,
graphs and analyses of services. It
also includes letters of support from
individuals and organizations.
The report also lists several for
mer nicknames for Pensacola, in
cluding “Snapper Capital of the
World.” It notes that the Naval Air
Station was once known as the “Cra
dle of Naval Aviation," but is now
called the “Mother-in-law of Naval
Aviation.”
Under a section on hurricanes,
the report says the entire Gulf Coast
United Press International
LOS ANGELES — Investment
promoter Joel David Nelson, who
pleaded guilty to cheating hundreds
of elderly people out of more than
$20 million in what was described as
the country’s longest-running pyr
amid scheme, was sentenced Tues
day to 15 years in prison.
U.S. District Court Judge Con-
suelo Marshall also placed Nelson on
10 years probation after his release
from prison and ordered him to re
pay $8 million to his victims.
Nelson, 50, pleaded guilty to five
counts of mail fraud in August in ex
change for a government promise to
drop 30 other charges against him.
He was accused of operating a pyr
amid investment scheme that lasted
13 years before finally collapsing.
Prosecutors said many of the
nearly 520 elderly people caught up
in the scheme lost their life savings
to Nelson.
“I can’t convey the sense of loss
and pain these people have gone
through,” Assistant U.S. Attorney
Richard Kendall told the court while
is at risk of tropical storms, butaddi
that most of Pensacola is aboit
storm surge levels.
Pensacola is competing againstli
other Gull Coast ports, includiui
nearby Mobile, to become the horn
of the Battleship Surface Actioi
Group.
Jack Hornsbeck, executive diret
tor of the Pensacola Area Chambet
of Commerce, said he was not c«
lain how many of the original 11
ports followed through and sul>
mitted reports to the Navy.
“For a period exceeding 13 yean,
from 1968 through 1981, the dt
fendant masterminded a pyramid
or Ponzi scheme, that victimizedai
least 517 investors. As far as thegm-
eminent is aware, defendant oper
ated the longest-running pyramid
scheme in history,” Kendall wroteii
a sentencing memo to the court,
Nelson was captured by federal
agents in June in San Antonio after
evading authorities for 2 Vi yean
He vanished from his Hollywood
Hills mansion on New Year’s Eve.
1981, with his secretary, DonnaSarr
tiago, and a briefcase filled witli
$150,000 in cash.
Nelson’s elaborate schemes in
cluded an insurance premium refi
nancing business known as the Shir
ley Company and a lucrative Texas
real estate deal, neit her of which ac
tually existed, prosecutors said.
“What these people lost was tht
expectation that they could retire
with the money they gave to Mr
Nelson,” the prosecutor said. “Itis
pure fantasy to argue that peoplt
did not lose much.”
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Judge justifies jail
ruling in Port case
United Press International
HOUSTON — Continued con
finement in jail is serving the de
sired purpose with a woman who
refuses to answer all of a grand
jury’s questions about her step
son’s possible involvement in a
murder, a federal judge ruled.
U.S. District Judge Carl Bue
denied a request by Odette Port
to be released from the Harris
County Jail, where she has been
held since Sept. 12 on a contempt
of grandjury charge.
Port’s attorney, Randy Schaf
fer, had argued that continued
incarceration would not cause her
to cooperate, but Bue said, “The
record belies this contention.”
In court records obtained
Tuesday of Bue’s Jan. 3 ruling,
the judge noted that Port had an
swered most of about 200 ques
tions in early November after the
grand jury extended its term to
Jan. 31. She earlier had refused
to answer the same questions.
Schaffer also had argued that
the half-dozen questions Port re
fused to answer were not relevant
to elevating the charge against
David Port from murder to capi
tal murder and could only «
used to assist the prosecution in
trial preparation.
Bue ruled that Port “lacki
standing to challenge the propri
ety of the grand jury proceed
ings” or to set the limits of its in
vestigation. He further said there
has been no abuse of the grand
jury process.
‘‘It is clear that while some pre
trial discovery may flow from the
investigation performed by the
grand jury, tne questions pro
pounded to Mrs. Port may wellbe
relevant and material to the ques
tion of whether a capital murder
had occurred or whether one or
more individuals were involved,”
Bue said.
David Port is charged with
murder in the June 7 shooting
death of letter carrier DeboraSue
Schatz, 23. He is free on $20,000
bond and is scheduled to go to
trial -Feb. 25 in New Braunfeb.
His father, Bernard Port, was
jailed from Sept. 12 to Nov. 9.
when he answered all of the ques
tions asked of him by the grand
jury-
Man sentenced to 15
years for mail fraud
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