The URL can be used to link to this page

Home My WebLink AboutOrdinance 1302 ORDINANCE NO. 1302 . WHEREAS, on May 29, 1985 Lone Star Gas Company made application for an increase in Residential and Commercial Rates; and WHEREAS, the City Council and Staff have studied the rate package filed; and WHEREAS, the City of Fort Worth has adopted its Ordinance No. 9491 on the 24th day of September, 1985 which sets rates in that city in answer to the same request made by Lone Star Gas Company. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of North Richland Hills, Texas, that: 1. The rates and terms adopted by the City of Fort Worth, Texas in Section 2 of Ordinance No. 9491 dated September 24, 1985 be, and here hereby, adopted for this city. 2. For the purpose of assuring rates to be charged by Lone Star Gas Company which are just and reasonable to the consumers of natural gas within the corporate limits of the City of North Richland Hills as well as Company, City reserves unto itself the right and privilege at any time to increase, decrease, alter, change or amend this ordinance or the rates herein established and provided for, or to enact any ordinance or adopt any such rates which would effectuate such purpose. In so doing, City further reserves unto itself the right and privilege of exercising any power granted it under statutory law, administrative rule or regulations, or otherwise. 3. By acceptance of this Ordinance, Lone Star Gas Company agrees that the rates set herein are sufficient to reover past losses resulting from its 1978 case styled Gas Utilities Docket No. GUD-1604 Consolidated presently pending before the Railroad Commission and will dismiss that case. 4. Lone Star Gas Company shall pay all reasonable rate case expenses to the City of North Richland Hills, Texas not to exceed $700.00. 5. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction and shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. Ordinance No. 1302 Page 2 6. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed. 7. This ordinance shall be in full force and effect for billings after November 1, 1985. PASSED AND APPROVED this 28th day of October, 1985. CCRlc~J)/ì1;0 Mayor ~eoT-eN\ l)J.J U ATTEST: A'~___",~~"'J' / ecretary (/ ) þ~ Attorney Ordinance No. 1302 Page 2 6. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed. 7. This ordinance shall be in full force and effect for billings after November 1, 1985. PASSED AND APPROVED this 28th day of October, 1985. Mayor ATTEST: City Secretary City of Fort Worth, 'Texas DATE Ma~E:=CEand ~:~nc~ fÞn;::;~C1tJjt.(f5 NUMBER Lone Star Gas Canpal1Y Request / ;. \ 2 9/24/85 G-6439 For Increase In Local Rates 1 of ~ RECOMftENDATION 1 d I It Is ree_ended that: ~ YJ (5 9L/-9 ! I) An ordinance (attachment C) be adopted establ ishhr:J new residenthl and canmercial gas rates to be charged by Lone Star Gas Company, within the City of Fort Worth, as recOOl1lended in the McMorries and Associates Report; and, . I , ~. ,; [\ ;, & 2} The Lone Star Gas Company be invoiced 1D reimburse the Ci ty of Fort Worth for the funds expended to engage the consul tant, in the amoll'lt of $22,500.00. BACKGROUND AND RATE HISTORY The present gas rates in effect in Fort Worth ~re approved by Ci ty Council in M&C G-54 75 and establi shed by Ordinance No. 8690, adopted November 23, 1982. Thi s rate s::hedul e repl aced old rates establi shed August 26, 1980 (Ordinance No. 8160). . On May 29, 1985, the Lone Star Gas Canpany fil ed a request for authori ty to increase its residenti al and canmercial rates in Fort Worth and the 16 other ci ties compri siB:) its Fort Worth Di stribution Systen. The requeste1 rates are desi gned 1D produce addi tional revenues of $7.220 mill ion. On July 2, 1985, the City Council approved M&C C-91 02, \tiIich autoor;zed the engagenent of a consul tant, McMorries and Associates of Amarillo, Texas, to eval uate the propriety and justi fication for the rate request. Thi s firm has been the City's consul tant in several other major rate cases in past years. In addition, the Council approved Ordinance No. 9414 which suspended the impl enen- tation of the new rate until October 1, 1985, pursuant to Articl e 1446C, V .A. T. S., the Public Util ity Regul atory Act (PURA). The consul tant now has Coopl eted hi s study and report (Attachment A) and rec011- mends a small er increase than that requested by the canpany. The consul tant recommends that $4.824 million additional revenue will be require1, which is 66 percent of the canpany's requested increase of $7.220 million. The canparison between the canpany' s and consul tant tt:Morries' fi ndings is sunmarized as follows: 1. 2. 3. 4. 5. 6. 7. 8 Operati n9 Revenue s at Present Rates, Adj usted Proposed Additional Revenues Total Operating Revenues (~+2) Less (adj usted) Operati ng Expenses Less Federal Incane Tax Net Operati ng Incone (3-4-5) Rate Base (Adj usted Val ue of Property) Rate of Return(Line 6/7} Company (Consultant (IN MILLION $) $139,459 7,220 146,679 136,598 3,669 $ 6,412 $ 79,472 8.06% $139,487 4,824 144,311 136,171 2,882 $ 5,258 $ 72,326 7. 20% DATE REFERENCE NUMBER G-6439 ~UfUECT: Lone Star Gas Compal1Y Request For Incr@a~ In ,Local Rates PAGE 2 2 _01_ 9/24/85 The Consul tant has ~rked cl osel y wi th the Ci ty' s Admini strative staff on the rate-design se911ent of the case. The Consul tant and staff agree on the proposed increased "insufficient funds check charge" of $7.50, and the establishment of a new charge of $5.00 for coll ections in the field (in lieu of service tennina- tion). These charges are cost-based and cost justi fied. However, the Consul tant does not agree with the company's proposed "customer charge" and cost-per-Mcf rates; Lone Star Gas has proposed a wi nter- summer rate di fferenti al in both the "customer-charge" and the "per-Mcf charge." The Consultant has recOOl1lended the seasonal differential for the "per-Mcf" rate, but favors a fixed year round monthly rate for the "CustOO1er-charge", as shoW'l in the foll owi B:) tabul a tion: Pre sent Lone Star Gas Consul tant' s Rate Proposed Rate Proposed Rate C US T()1ER CHA RGE Residenti al/Mo. $5.00 Sum. * $ 4.50 $6.00 Wi n. * 6.50 Commerc i a 1 /Mo. $8.00 Sum. * $ 6.50 $9.00 Win. * 10.50 CONSUMPT ION CHARGE Per Mcf . $4.1223 Sum. * $5.0295 Sum. * $4.9346 Win. * 5.3795 Win. * 5. 2846 * 5 summer months, 7 winter months The rate structure shown a:>ove has been designed to 1 essen the impact on custo- mers in the high usage months and will provide for smaller increases in custo- mer bill s than wi 11 the company's J)"oposed rates. The effect of the btlo proposal s, as compared with present cost per Mcf 1 evel s is shoWl in Attactvnent B-1. The impact upon the annual gas bill s of three typical customers homes, for small, medi urn and 1 arge annual use of gas, consumptions of 126 Mef, 146 Mcf and 218 Mcf per year, respectively is shown on Attachments B-2, -3 and -4. These three studies are representative of the majority of residential users' bills in Fort Worth. Taken tDgether wi th the effect on bill s of the more moderate rate structures devi sed by the Consul tant and staff, the cost of gas purchased by the coopany at the City "gate" has been gradually declining since the last rate case in 1982. Fron avail able information reported by the nations leading energy eco- nomic experts, future prices for natural gas are anticipated 1D be more stable, with sl ight and gradual decl ining price 1 evels continuing over the next 24 months. The tab ul ation shown in Attachment B-5 ill ustrates thi s J)"ice decline for monthly purchased gas prices at the Ci ty gate, for years 1983 through September 1985 and estimated through September 1986. ra:l hh SUBMITTED FOR THE(j);¿¿¿~· 11 ~ CITY MANAGER'S , '/~ ./.11 OFFICE BY: I \. ~V~ ORIGINATING . U DEPARTMENT HEAD: Wade Adkl ns DISPOSITION BY COUNCIL: o APPROVED Ll OTHER (DESCRIBE) PROCESSED BY CITY SECRETARY FOR ADDITIONAL INFQ.R.NI"TlONd A h· b h Ext. 679C CONTACT: Klcnar ug ln aug c DATE I/) w ~~ . 1/)1 ~ ., cr ~ ~ ~ ~ I/) Z I/) W I Z j 9 ~ CD 0 I/) W + ~ê"O o 0 ~ŒI !<v,~ a::>~ ~!z¡£ ~ ~ 01 W Œ":ñ ::0 .. ~ !3~ ~., ~ u. u. ~ I/) :r ~ 5 :a ~ 5 u. b $ II) cr "i ¡- L- ~ 11\ >- ~ u L- CD ~ E => I/) 11\ ~ +- c o :£ 11'\ I/) ~ L- a> +- c :a 11\ ~ +- c Q) 0 +- :£ II) ,... cr C> en -I. "0 ~ 8. o L. I.. ~ æ . E 11\ ::0 I/) 11\ CD ~ 'È o :£ 11'\ a:: ~ en !!I o -I +- c ~ a¡ I.. ~ +-$ II) II) cr 11\ CD L- a¡ +- c :a 11\ ~ +- c o :£ ,... .~ :tt ~~ II) . CD 11'\ ~ ~. ~ + ;* ~~ II) . CD. ~;. u~ -CD 11\ '" II) . CD 11'\ ~& ~~ 11\ 0 Æot\ < æ· .~ U'" - - 11\ . Æ:J. -I ~ ~ o ~ -I ~ ° ~ -I g ~ -I g ~ ...J g ~ I.. o u. ~CC;::::D:;::~~~g;~~~ d ~ ~ Y3 ~ ~ i ~ i Eë ~ ~'~ -"'. ... ~~·:;::~~gR~~gg ............ "''''II'\''''OI~~ ... ~~¡£"'~~¡£~$"'~~ ~~ ·~~rDcð~ -cëö'" -"'''''''.'''CC ~¡:::¡~ ... 11'\ .0"',....11'\01"',..."'0 '" .o"',....II'\'OrOCC,...O Ö~~;!P§~ ·i~~~~ '" v' "'. .... CC.o. '" ,... · . . :;::~2;gR~~gg . ·"''''~''':~~cÖ '" .... ~~g~~~~~~r;;pg ............ 0~2¡Q,s:;~:g~2;~:;::~ "'. .... 00 "''''''''<tIl'\''''OICC", 11'\ 11'\ 11'\11'\11'\11'\ 11'\11'\ 11'\ II'\.oCC · -:!-,. .~~.\Õ -..ê-.ë ~ .~ ~ '" . 11'\ CC 0 '" 11'\ 0 "'11'\ ... CCCC"'OCC .0.",000 "'''' "'CCO"" .0 11'\. CD .0 .... ·~~~"':O:cë~ '" .... :gl'i:~~~~~~g ·~ÑcD""~Ör:...: ",N",'<t.oCC OICCIl'\ 01.. Ö~..; '<tf::;~ .... II'\CD~"'~p~~~~~:£ ~ñcD"'~': ·~":'Ö"':d. "''''.I/''I''''OI'''¡:::)~ .... CCII'\"'OCC ",.",000 "',... II'\CCO"""'II'\.CC.o · . . . . ~ '" ~ ,..: ~ ~ ~ '" .... '" 11'\ '" ¿,..: ~~~~gð;g;~~~ ';'';ä..~';~.Ad';''~ "'N~ 11'\""0"'11'\0 -"'1/"1 .... ~",~;ö1'i:~:;::::::2;~~0I r/..';rD"'rD~ ·':~~":'Ö -",N'<tIl'\""OI"''''''' "'. .... ~8~"'~~~ð;~~~~ .. ·ÑÑ'-~"-:Ö"'~Ñ _NII'\ .... "'~:;:¡~;ö~~11j~8~~ O:"''':~~~\Õ\Õ~cÖ':': r. . .0 CD 0 Ñ :;; .... b x "''''.II'\CDOII'\ 0 11'\00 "''''11'\0 .# P\t-t.ú.c.hme.r\t B- \ ,# t '0 (1) en ""' o __ ~ r-- o \D ~ ~ I"') ø tf) ..:I t~ C r-- (1) \D en (1) I"') ~ ~ .., ~ en 0 O~ U tTI en C 1tI·"'¡ ø~ .,..¡ ~I.¡ o .., en -0 ~ t) ~en ItI tTI +J ~>, e~ ..,.c: en'" ::3 C .n 0 '0 e 1ft U en 0:: ¿g~ '0'" ClJ en en ClJ . ItI .., .c:1tI t)~ ~ ::3 C . ~Ol,.. t) >, '0 :E ~ ClJ'· .c:en""' ..,1tI- coD"'" o \D :E · -I"') .cr<l> II-JU Oøæ,. - C ""' 0"'0;) .,..¡ C (1\ +JClJ_ ItI e ~..,.., ::3 tf) en t) ::3 ::3 ~ ·n tTI ItI '0 ::3 UII(II( , >, .., ..-1 U .., en o U .., en 1tI.., ~en o C t) .,..¡ I"') 'E~ :>-- o ~ c..c c..1tI 1tIt") C ClJ 0 +J It!'t O::ClJ en ClJ It! "'oD It! ø -. ClJ >,en .., ItI ·.-IU U ""' ex> 0'1 -- .., en ::3 tTI ::3 oCt: It! 0,,", 000 N qo 01"') qoO r-- qo ex> - I"') I"') 0;) 0'1 :> o z ~ ClJ '0 ð .., en ItI ~ U 0:: ~ r-- Cex> 0,,", I"') '0 ClJØ4 en::> ltIø CD - oD . . I"') --qoO'O NO'I_ClJ \DNOOen 001"')0 . . . ~ --00 ~, <f>ø.. 00 \0 00 qo rz.. U :E ""' ,.., M-\DC ""'LI"\(1\Q) \DNNen OO,,",Q) . . .)...1 --oø.. o ~ o .., ~ t) o ItI ..,rz.. t) ItI Q) rz.. !3 II ><~oCt: 1tI0ø E-i>Ø4 >c:>c: B-2 TYPICAL BILL COMPARISON SHOWING LSG PROP. RATES C/FW STAFF RATES, GAS HEAT-WAT. HTR. (NO COOKING) 3500 Block, Sagecrest Terrace-F.W. (All computations based on August 1985 gas cost of $ 3 . 671 5/MC f) CUST. USE, PRESENT BILL AT LSG PROP. c/m PROPOSED Mcf's. BILL RATE BILL/RATE Jan. 30 $144.56 $155.96 $153.14 W I Feb. 25 121.30 131.59 128.62 N T Mar. 15 74.77 81.55 79.57 E R Apr. 10 51.52 56.54 55.04 May 5 28.26 31.52 30. 52 June 3 18.96 19.95 19.66 S U July 1 9.65 10.65 10.55 M M Aug. 1 9.65 10.65 10.55 E R Sept 3 18.96 19.95 19.66 Oct. 3 18.96 19.95 19.66 W Nov. 10 51.52 56.54 55.04 I N Dec. 20 98.04 106.57 104.09 TOTAL 126.0 $646.15 $701.42 $586.10 Average cost $ 5. 13 $ 5.56 $ 5.44 per Mc f Increase over $ 55.27 $ 39.95 present bill: 8.5% 6.2% - . ---._--- B-3 TYPICAL BILL COMPARISON SHOWING LSG PROP. RATES C/FW STAFF RATES, GAS HEAT-WAT. HTR. (COOKING) Mississippi Street - 1600 Block (All computations based on August 1985 gas cost of $3.6715/Mcf) W I N T E R CUST. USE, PRESENT BILL AT LSG PROP. C/FW PROPOSED Mcf's. BILL RATE BILL/RATE Jan. 25 $121.30 $131.59 $128.62 Feb. 30 144.56 155.96 153.14 Mar. 20 98.04 106.57 104.09 Apr. 15 74.77 81 .55 79.57 May 8 42.22 46.53 45.24 June 5 28.26 29.24 28.77 July 3 18.96 19.95 19.66 Aug. 3 18.96 19.95 19.66 Sep. 3 18.96 19.95 19.66 Oct. a 42.22 43.19 42.44 Nov. 10 51.52 56.54 55.05 Dec. 15 74.77 81 .55 79.57 Total 145.0 $734.54 $791.11 $775.47 Average cost $ 5.07 $ 5.45 $ 5.35 per Mcf Increase in annual 12 mo. $ 56.57 $ 40.93 bill over present rate: 7.7% 5.5% S U M M E R W I N -- ~- -.,'._ _;;......-......~~c.........~. __.._ __ B-4 TYPICAL BILL COMPARISON SHOWING LSG PROP. SEASONAL AND C/FW PROPOSED CONSTANT RATES 2300 Block Lakeview Drive, Bedford "All-Gas" Customer-gas ale (All computat ions based on August 1985 gas cost of $3.6715/Mef) CUST. USE, PRESENT BILL AT LSG PROP. C/FW PROPOSED Mef's. BILL RATE BILL/RATE Jan. 20 $ 98.04 $ 106.57 $ 104.09 W Feb. 25 121. 30 131.59 128.62 I N Mar. 15 74.77 81.55 79.57 T E Apr. 10 51. 52 56.54 55.05 R May 8 42.22 46.53 45.24 June 10 51.52 51.04 51.55 S U July 20 98.04 97.57 97.03 M M Aug. 35 167.82 167.23 165.38 E R Sept. 30 144.56 143.98 142.61 Oct. 25 12.1.30 120.84 119.87 W Nov. 10 51.52 56.54 55.05 I N Dec. 10 51.52 56.54 55.05 TOTAL 218.0 $1 ,074. 13 $1,116.52 $1,099.11 Averag e cost $ 4.93 $ 5.12 $ 5.04 per Mef Increase over $ 42.39 $ 24.98 present bill: 3.9% 2.3% _._~_.....,__.L,__'. . B-5 COST OF GAS PURCHASED BY LONE STAR DISTRIBUTION FROM SUPPLIERS AT CITY OF FORT WORTH "GATES ," SINCE LAST RATE CASE IN 1982 (Source TRRC Monthly Gas Cost Filings) [Per Mcf] 1983 1984 1985 1986 January $4.42 $4.28 $3.98 $3.92 February 4.06 4.44 4. 11 4.05 March 4.08 4.61 4.26 4. 16 April 4.36 4. 12 3.66 3.52 May 3.81 3.39 3.40 3.44 June 3.44 3.81 3.15 3.21 July 3.78 4.21 3.66 3.64 August 4.28 4.14 3.67 3.65 September 4.05 4.01 3.51 3.48* October 4.09 3.74 3.42* November 4.20 3.95 3.71 December 4.31 3.88 3.81 *October 1985 through September 1986 - estimated by Lone Star Gas Company and City of Fort Worth Utility Supervisor. Balance of data is actual. Attachment ·C" ORDINANCE NO. AN ORDINANCE REGULATING THE RATES AND CHARGES OF ALL PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS Of' PERSONS ENGAGED IN THE BUSINESS OF FURNISHING. DISTRIBUTING, OR DELIVERING NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF FORT WORTH, TEXAS; REPEALING ORDINANCE NO. 8690, PROVIDING A PENALTY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on May 29, 1985, Lone Star Gas Company made applica- tion for an increase in Residential and Commercial gas rates de- signed to produce additional revenues of $7,220,499 from its Fort Worth Distribution System consumers; and, WHEREAS, public hearings have been held on this application of Lone Star Gas Company, at which all interested parties were given a full opportunity to be heard on the requested rate increase; and WHEREAS, the hearings on said rate increase appl ication have now been concluded and closed and the City Council has duly consid- ered all matters presented to it; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That the City Council of the City of Fort Worth, in the exer- cises of its sound legislative discretion finds the following facts to be established: a. That Lone Star Gas Company's distribution properties used and useful in serving the consumers in the Fort Worth Distribution System comprise an Invested Capital Rate Base of $43,571,980 and an Adjusted Value Base Rate of $72,326,442. b. That Lone Star Gas Company is entitled to a 14.6% rate of return on its Invested Capital Rate Base and a 7.2% rate of return on its Adjusted Value Rate Base; and that said rates of return are fair, rea- sonable and just under the facts and circumstances presented; c. That Lone Star Gas Company requires a net operating income of $5,258,132 on revenues from Residential and Commercial gas sales of $90,259,756 to achieve the foregoing fair rates of return. d. That the rates hereinafter fixed are determined to be fair, just and reasonable; and that all previously adopted rates and charges for gas serv ice to residential customers in the City of Fort Worth should be and are hereby re- pealed effective November 1, 1985. SECTION 2. That for all gas consumed on And after November 1, 1985, and billed on and after November 1, 1985, all persons, firms, corpora- tion or associations of persons engaged in the business of furnish- ing, distributing or delivering natural gas to residential and commercial consumers in the City of Fort Worth are hereby authorized to charge for their product and service in accordance with the following schedules: A. Residential' Commercial Rates 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. Summer rates shall be applicable between the meter reading dates in May and October (five months). Winter rates shall be applicable at all other times. 1. Residential: Winter Summer Customer Charge All Consumption @ $6.00 $5.2846 Per Mcf $6.00 $4.9346 Per Mef If the serv iee period is less than 28 days the customer charge is $.2143 times the number of days service. 2. Commerc i al: Winter Summer Customer Charg e All Consumption @ $9.00 $5.2846 Per Mcf $9.00 $4.9346 Per Me! If the service period is less than 28 days in the winter months, the winter customer charge is $.3214 times the number of days service. B. Gas Cost Adjustment Each monthly bill at the above rates shall be adjusted for gas cost as follows: 1. The City gate rate increase or decrease appl icable to current billing month residential and conunercial sales shall be estimated to the nearest $0.0001 per Mcf based upon: a) A volume factor of 1.0294 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by ad- justed sales volumes. -2- b) The City gate rate estimated to be applicable to vol umes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcf (shown below as WReW). 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 adjust- ment for the second following billing month. The correct- ing factor (shown below as WCW) shall be ex pressed to the nearest $0.0001 per Mef based upon: a) The corrected adjustment amount based upon the actual City gate rate, less b) The estimated adj ustment amount billed under Item B 1. above, divided by c) Distribution system residential and cOllUTlercial 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 1.06213 to include street and alley rental and state occupation tax due to increasing Company revenues under this gas cost adjustment prov is ion. In sUllUTlary, the gas cost adjustment (GCA) shall be dêtermined to the nearest $0.0001 per Mcf 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 = [(1.0294) (Re - $4.0200) + C] X 1.06213 C. Tax Adjustment The tax adjustment shall be an amount equivalent to the pro- portionate part of any new tax, or increased tax, or 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 January 1,1985, upon or allocable to the Company's distribu- tion operations, by any new or amended law, ord inance or contract. D. Special provisions and Adjustments 1. Bills are due and payable when rendered and if not paid within 15 days of the date shown on the bill as the ·present meter readingW date or the ·for service through" date, subjects the customer to illUTlediate termination of gas service unless they have made other payment arrange- ments with the Company. 2. Restoration of service is subject to the following sche- dule of reconnect charges: In addition to the charges and rates set out above, the Company shall charge and collect the sum of; -3- Schedule Charge 8 a.m. to 5 p.m. Monday through Friday Night, week-end and holiday $20.00 $30.00 as a reconnect charge for each reconnect ion or reinaugura- tion of gas service, where service has been discontinued at the same premises for any reason, with the fOllowing exceptions: a) por a builder who uses gas temporarily during con- struction or for display purposes. b) For the first occupant of the premises. c) Whenever gas service has been temporarily interrupted because of system outage, serv ice work or appl iance installation done by Company; or d) For any reason deemed necessary for company opera- tions. 3. A returned check handling charge of $7.50 will be made for each check ret urned to the Company for reasons of non- sufficient funds, account closed, payment withheld, in- valid signature or improper preparation. 4. A charge of $5.00 shall be made whenever it is necessary to send a company employee to a customers premises to collect amounts owed for gas serv ice. SECTION 3. For the purpose of assuring rates to be charged by Lone Star Gas Company which are just and reasonable to the consumers of nat- ural gas within the corporate 1 imits of the City of Fort Worth as well as Company, City reserves W'lto itself the right and privilege at any time to increase, decrease, al ter, change or amend th i s ord inance or the rates herein establ ished and prov ided for, or to enact any ordinance or adopt any such rates which would effectuate such purpose. In so doing, City further reserves W'lto itself the right and privilege of exercising any power granted it under statu- tory law, administrative rule or regulations, or otherwise. SECTION 4. By acceptance of this Ord inance, wne Star Gas Company a9 rees that the rates set herein are sufficient to recover past losses re- sulting from its 1978 case styled Gas Utilities Docket No. GUD-1604 Consolidated presently pending before the Railroad Commission and will dismiss that case. -4- SECTION S. Lone Star Gas Company shall pay all reasonable rate case 7()O. Q1D expenses to the City of i1t1'1:L ~v~Ll" Texas not to exceed $22,500.06. SECTIOO 6. If any section, subsection, sentence, clause, phrase or por- tion of this ordinance is for any reason held invalid or unconstitu- tional by any court of competent jurisdiction, such shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portions thereof. SECTION 7. All ordinances or parts of ordinances in conflict with this ordinance are hereby repealed. constitute a separate 0 ~ SECTION 8. That any perso~, firm or 'h h d~" f Wlt t e terms an pr~lslons 0 \ guilty of a misdemeanor \ 00, to compl Y shall be deemed be fined not to exceed 00), and each day's violation shall 9. That on and after the date of its law. APPROVED AS ro FORM AND LEGALITY: (\ . r\ , . í) . C!) ~'I.-.I' ~/ t(..______.- City At torney Date: '\ ~ \ ç - \: ",- ADOPTED: EFFECTIVE DATE: 111 -5-