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HomeMy WebLinkAboutOrdinance 2070 ORDINANCE NO. 2070 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF NORTH RICHLAND HILLS, TARRANT COUNTY, TEXAS: PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; PROVIDING FOR A WEATHER NORMALIZATION CLAUSE; PROVIDING FOR THE RECOVERY OF ANY CURRENT RATE CASE EXPENSE; PROVIDING FOR A SCHEDULE OF SERVICE CHARGES; AND PROVIDING FOR A MAIN LINE EXTENSION RATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. Effective with gas bills rendered on and after September 1, 1995 and subject to the various provisions set forth in this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits of North Richland Hills, Texas by Lone Star Gas Company, a division of ENSERCH Corporation, a Texas corporation, its successors and assigns, is hereby fixed and determined as set forth in Item A in the Attachment hereto which is incorporated herein. SECTION 2. The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4.0200 per Mcf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the intercompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the North Richland Hills distribution system, according to Item B, in the Attachment hereto which is incorporated herein. SECTION 3. The residential and commercial rates set forth above shall be adjusted upward or downward for changes in taxes and other governmental impositions, rental fees or charges according to Item D, in the Attachment hereto which is incorporated herein. SECTION 4. Company shall continue to receive the weather normalization adjustments as authorized in the rate ordinance dated August 24, 1992, according to Item C in the attachment hereto which is incorporated herein. SECTION 5. In addition to the aforesaid rates, Company shall have the right to collect such reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regulations. The charges set forth in Items E and F in the Attachment hereto which is incorporated herein, are approved. Services for which no charge is set out may be performed and charged for by Company at a level established by the normal forces of competition. ITEM A. ITEMS. ATTACHMENT TO ORDINANCE NO. 2070 CITY OF NORTH RICHLAND HILLS, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES RATES Subject to applicable adjustments, the following rates are the maximum applicable to residential and commercial consumers per meter per month or for any part of a month for which gas service is available at the same location. Residential: Customer Charge All Consumption $ 8.0000 5.3868 Per Mcf @ If the service period is less than 28 days in a month the customer charge is $.2857 times the number of days service. If the consumption contains a portion of an Mcf, a prorata portion of the per Mcf charge will be made. Commercial Customer Charge First 20 Mcf Next 30 Met Over 50 Mcf $ 14.0000 5.5750 Per Mcf 5.2750 Per Mcf 5.1250 Per Mcf @ @ @ If the service period is less than 28 days in a month the customer charge is $.5000 times the number of days service. If the consumption contains a portion of an Mcf, a prorata portion of the per Met charge will be made. Sills are due and payable when rendered and must be paid within ten days from monthly billing date. Residential Off-Peak Sales Discount: An off-peak sales discount of $.25 per Mcf will apply to residential customers' volume purchased in excess of 8 Mcf for each of the billing months May through October. GAS COST ADJUSTMENT Each monthly bill at the above rates shall be adjusted for gas cost as follows: 1 (1) The city gate rate increase or decrease applicable to current billing month residential and commercial sales shall be estimated to the nearest $0.0001 per Mcf based upon: (a) The city gate rate estimated to be applicable to volumes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcf (shown below as "Re"), less (b) The base city gate rate of $4.0200 per Mcf, multiplied by (c) A volume factor of 1.0301 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes. (2) Correction of the estimated adjustment determined by Item B (1) above for the second preceding billing month shall be included as part of the adjustment. The correcting factor (shown below as "C") shall be expressed to the nearest $0.0001 per Mcf based upon: (a) The corrected adjustment amount based upon the actual city gate rate, less (b) The estimated adjustment amount billed under Item B (1) above, divided by (c) Distribution system residential and commercial sales Mcf recorded on the Company's books during the prior year for the month that the correction is included as part of the adjustment. (3) The adjustment determined by Item B (1) and Item B (2) above shall be multiplied by a tax factor of 1.06146 to include street and alley rental and state occupation tax due to the change in Company revenues under this gas cost adjustment provision. In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Met by Item B (1), Item B (2) and Item B (3) as follows: GCA = [Item B (1) + Item B (2)] X Item B (3) GCA = [(1.0301) (Re - $4.0200) + C] X 1.06146 2 ITEMC. Weather Normalization Adjustment: The Weather Normalization Adjustment clause authorized in the rate ordinance dated August 24, 1992 will continue in effect as follows: Effective with bills rendered during the October 1995 through May 1996 billing months, and annually thereafter for the October through May billing months, the above residential and commercial consumption rates for gas service, as adjusted, shall be subject to a weather normalization adjustment each billing cycle to reflect the impact of variations in the actual heating degree days during the period included in the billing cycle from the normal level of heating degree days during the period included in the billing cycle. The weather normalization adjustment will be implemented on a per Mcf basis and will be applicable to the heating load of each customer during the period included in the billing cycle. It will be determined separately for residential and commercial customers based on heating degree data recorded by the D/FW Airport weather station. The adjustment to be made for each billing cycle will be calculated according to the following formula: VilNA = NDIr ADD x M x AHL ADD Where: WNA = NDD = Weather normalization adjustment Normal heating degree days during the period covered by the billing cycle Actual heating degree days during the period covered by the billing cycle Weighted average margin per Mcf included in the commodity portion of the rates effective during the October through May billing months Actual heating load per customer ADD = M= AHL= The heating load to which the weather normalization adjustment is to be applied for residential customers is determined by subtracting the residential class base load from the total volume being billed to the customer. The heating load to which the weather normalization adjustment is to be applied for commercial customers is determined by subtracting the base load for the customer from the total volume being billed to the customer. The base load of a customer is the average level of nonheating consumption. 3 ITEMD. ITEM E. The weather normalization adjustment is subject to a 50% limitation factor based on temperatures being fifty percent warmer or colder than normal. The weather normalization adjustment will be calculated to the nearest $.0001 per Mcf. TAX ADJUSTMENT Each monthly bill, as adjusted above, shall be adjusted by, an amount equivalent to the proportionate part of any new tax, or any tax increase or decrease, or any increase or decrease of any other governmental imposition, rental fee or charge (except state, county, city and special district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to July I, 1994 upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. SCHEDULE OF SERVICE CHARGES (1 ) Connection Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of: Schedule CharQe 8 AM. to 5 P.M. Monday through Friday 5 P.M. to 8 AM. Monday through Friday Saturdays, Sundays and Holidays $ 27.50 41.25 41.25 F or each reconnection of gas service where service has been discontinued at the same premises for any reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions: (a) For a builder who uses gas temporarily during construction or for display purposes. (b) Whenever gas service has been temporarily interrupted because of system outage or service work done by Company; or (c) For any reason deemed necessary for company operations. (2) Returned Check Charges A returned check handling charge of $13.75 is made for each check 4 ITEMF. returned to the Company for any reason. (3) Collection Charge A charge of $9.50 shall be made for each trip by a Company employee to a customer's residence or place of business when there is an amount owed to the Company that is past due. This charge shall not be made when the trip is required for safety investigations or when gas service has been temporarily interrupted because of system outage or service work done by Company. MAIN LINE EXTENSION RATE The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. 5 SECTION 6. In addition to the aforesaid rates, Company is authorized to recover the current rate case expense through a surcharge designed for a six-month nominal recovery period. The surcharge per Met will be calculated by dividing the rate case expense to be recovered by one-half of the adjusted annual sales volume to residential and commercial customers. The Company will provide monthly status reports to the City to account for the collection of rate case expense. SECTION 7. The rates set forth in this ordinance may be changed and amended by either the City or Company in the manner provided by law. Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the Company's Rules and Regulations currently on file in the Company's office. SECTION 8. It is hereby found and determined that said meeting at which this ordinance was passed was open to the public, as required by Texas law, and that advance public notice of the time, place and purpose of said meeting was given. PASSED AND APPROVED on this the ~~~ day of ¿:;;:;~ 19~ ,A D., ATTEST: ~~~ /~ Secretary ~,,~~ yor City of North Richland Hills, Texas