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Mr. Robert Voss Page 3 March 2, 1972 ,eno more authority to decide municipal salaries than any private person or corporation individually, whether by initiative or referendum. I recognize that taken as a whole this letter may not be oP great help to you, but it is a rather complex and sensitive area. The meaning of the public interest in having a say in city government as against the j public interest in city government being able to function efficiently and without undue harassment are difficult to reconcile. The particular subject matter in your case, +he increase of gas rates, is perhaps even more troublesome than most. For one thing the public has obviously a very great interest in maintaining reasonable gas rates, but it is not likely that a referendum vote would be based on any rational interpretations of what might be a reasonable rate. In other words utility rate structure and rate regulation is a highly complex field and there are very few indivi- duals or groups who have any particular expertise in this area. There is little question that municipalities are at a disadvantage in rate regulation because they cannot afford to hire the necessary experts to challenge the rate increases. The answer may lie in some kind of a regional or state-wide regulatory agency to perform this function, but it appears to me unlikely that voters can serve this function through initiative or referendum. I hope the enclosed materials and rambling discussions will be of some help to you. If we can be of further assistance, please let us know. Sincerely, Louis W. Claeson, Jr. Staff Counsel LWC:dma Encls.