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HomeMy WebLinkAboutOrdinance 1742 ORDINANCE NO. 1742 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; APPROVING THE ELIMINATION OF THE COMMERCIAL CONTRACT PUBLIC SCHOOL RATE; PROVIDING FOR THE RECOVERY OF ANY CURRENT OR UNRECOVERED PRIOR 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. Subject to the following provisos effective with gas bills rendered on and after thirty (30) days from the final date of passage of 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. This ordinance also approves the elimination of the Commercial Contract Public School Rate and the placement of those customers receiving said rate on the commercial rate set forth in Item A in the attachment hereto. Proviso No. (1): If this ordinance is finally passed and approved before the effective date stated in the Statement of Intent the new rates shall be effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance for the good cause of reducing regula- tory lag. Proviso No. (2): If this ordinance is finally passed and approved after a period of suspension, the new rates shall be billable immediately in order to reduce regulatory lag. This provision is an exercise of the regulatory authority's discretion to establish the effective date of rates at anytime after jurisdiction attaches, and its authority pursuant to State law to establish rates for any period of suspension. 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 intracompany 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. The rates in Item A shall also be adjusted according to Item C in the attachment hereto which is the Weather Normalization Adjustment. SECTION 3. Company shall also receive tax adjustments according to Item D, in the Attachment hereto which is incorporated herein. Ordinance No. 1742 Page 2 SECTION 4. In addition to the aforesaid rates, Company shall have the right to collect such reasonable charges as are necessary to conduct its busi- ness and to carry out its reasonable rules and regulations in effect. The charges set forth in Items E, F and G, in the Attachment hereto which is incor- porated 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. SECTION 5. In addition to the aforesaid rates, Company is authorized to recover the current and any unrecovered prior rate case expense through a surcharge designed for a six-month nominal recovery period. The surcharge per Mcf 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 custom- ers. The Company will provide monthly status reports to account for the collect ion. SECTION 6. 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 7. 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 24th day of A. D. 19 91 June ATTEST: (]_~¡J ~) Y./t'0'(~ ~ ~ Secretary ~~ City of North Richland Hills, Texas S TO FORM AND LEGALITY: ~~. Attorney for the City ATTACHMENT TO ORDINANCE NO. 1742 CITY OF NORTH RICHLAND HILLS, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES ITEM A. Rates The following rates are the maximum applicable to residential and com- mercial 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 @ $ 7.0000 5.2020 Per Mcf If the service period is less than 28 days in a month the customer charge is $0.2500 times the number of days service. Commercial: Customer Charge First 20 Mcf Next 30 Mcf Over 50 Mcf @ @ @ $12.0000 5.4478 Per Mcf 5.1478 Per Mcf 4.9978 Per Mcf If the service period is less than 28 days in a month the customer charge is $0.4286 times the number of days service. Bills are due and payable when rendered and must be paid within fifteen days from the monthly billing date. Residential Off-Peak Sales Discount: An off-peak sales discount of $.25 per Mcf will apply to residen- tial customers volume purchased in excess of 8 Mcf for each of the billing months May through October. ITEM B. Gas Cost Adjustment Each monthly bill at the above rate shall be adjusted for gas cost as follows: (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) A volume factor of 1.0312 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes. (b) 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 liRe "). (c) The base city gate rate of $4.0200 per Mcf. (2) Correction of the estimated adjustment determined by Item B (1) above shall be included as part of the adjustment for the second following billing month. 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 1.06226 to include street and alley rental and state occupation tax due to increasing or decreasing Company revenues under this gas cost adjustment provision. In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by Item B (1), Item B (2) and Item B (3) as fo llows : GCA = [Item B (1) + Item B (2)] X Item B (3) GCA = [(1.0312) (Re - $4.0200) + C] X 1.06226 ITEM C. Weather Normalization Adjustment: Effective with bills rendered during the October 1991 through April 1992 billing months, and annually thereafter for the October through April billing months, the above residential and commercial consumption rates for gas service will 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 bill- ing 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 applica- ble to the volume consumed by 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 weather station. The adjustment to be made for each billing cycle will be calculated according to the following formula: NDD - ADD WNA = ADD x M Where: WNA = NDD = ADD = M = 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 commod- ity portion of the rates effective during the October through April billing months The weather normalization adjustment will be calculated to the nearest $.0001 per Mcf. ITEM D. Tax Adjustment: The tax adjustment shall be an amount equivalent to the proportionate part of any new tax, or increased tax, or any other governmental impo- sition, rental, fee or charge (except state, countys city and special district ad valorem taxes and taxes on net income) levieds assessed or imposed subsequent to July 1, 1990, upon or allocable to the Company's distribution operations, by any new or amended laws ordinance or contract. ITEM E. Rate Case Expense: If rate case expense is incurred in this current case, it is the inten- tion of Lone Star Gas Company to recover the current and any unre- covered prior rate case expense through a surcharge designed for a six-month nominal recovery period. The surcharge per Mcf would 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. When a surcharge is applicable, monthly status reports will be provided to account for the collections. ITEM F. Schedule of Service Charges (1) Reconnect Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of: Schedule Charge 8 a.m. to 5 p.m. Monday through Friday 5 p.m. to 8 a.m. Monday through Friday Saturdays, Sundays and Holidays $25.00 $40.00 $40.00 as a reconnect charge for each reconnection or reinauguration of gas service, where service has been discontinued at the same prem- ises for any reason, with the following exceptions. (a) For a builder who uses gas temporarily during construction or for display purposes. (b) For the first occupant of the premises. (c) Whenever gas service has been temporarily interrupted because of system outage, service work or appliance installation done by Company; or (d) For any reason deemed necessary for Company operations. (2) Returned Check Charge A returned check handling charge of $7.50 is made for each check returned to the Company for reasons of non-sufficient funds, account closed, payment withheld, invalid signature or improper preparation. (3) Collection Charge A charge of $7.00 shall be made for each instance when it is necessary for a company employee to go to a customer's residence or place of business in order to collect amounts owed the Company for gas service previously rendered. This charge shall not apply if service is terminated at the time of the collection action. This charge shall apply to only one trip on the same amount owed. ITEM G. Main Line Extension Rate The charge for extending mains beyond the free limit established by Lone Star Gas Company, or any free limit established by franchise, for residential customers shall be the lesser of: (a) the system-wide average cost of construction, including all overheads, for the prior fiscal year or (b) the adjusted actual cost as determined by applying the latest Handy-Whitman Index to the 1975 actual base cost of $2.94. The Company shall file the calculation of such charge with the city as soon as sufficient data is available each fiscal year. Extension to commercial and industrial customers shall be based on actual cost per foot. STATE OF TEXAS § § COUNTY OF TARRANT § I, , Secretary Hills, Tarrant County, Texas hereby certify that true and correct copy of an ordinance passed and the City of North Richland Hills at a day of ,19 , as it appears said Council in Book , Page WITNESS MY HAND AND SEAL OF SAID CITY, THIS THE A. D. 19 of the City of North Richland the above and foregoing is a approved by the City Council of session held on the of record in the Minutes of day of Secretary City of North Richland Hills, Texas