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HomeMy WebLinkAboutOrdinance 0985 ORDINANCE NO. 985 WHEREAS, Lone Star Gas Company, on June 24, 1982, filed with this City a Statement of Intent to increase gas rates of residential and commercial customers pursuant to a Schedule of Rates attached thereto; and WHEREAS, such Schedule of Rates was suspended for study for a period of 90 days from the Rate Effective Date by the City Council; and WHEREAS, the City has not had ample time to study the Schedule of Rates and needs an additional 30 days from the ending date of the present suspension; and WHEREAS, the City Council, in its descretion, finds that interim rates should be set for the entire period of suspension from this date forward. NOW, THEREFORE, be it ordained by the City Council of the City of North Richland Hills, Texas, that: 1. The City Council does hereby suspend the Schedule of Rates filed by Lone Star Gas Company on June 24, 1982, for a period of 30 days from the ending date of the current 12o-day suspension which started on the Rate Effective Date. 2. The City Council in the exercise of its sound legislative descretion finds that the rates set out below and fixed by this Ordinance are determined to be fair, just, and reasonable interim rates and shall be effective as interim rates from this day until the end of the period of suspension of the Schedule of Rates filed by Lone Star Gas Company on June 24, 1982, including the additional 30-day suspension period contained in Section 1, above. 3. That all gas consumed on and after October 31, 1982, and billed on and after October 31, 1982, all persons, firms, corporations or associations of persons engaged in the business of furnishing, distributing, or delivering natural gas to residential and commercial consumers in the City of North Richland Hills, are hereby authorized to charge for their product and service in accordance with the following schedules during such interim period: A. Residential and Commercial All Consumption - $2.7166 per MCF Customer Charge: Residential - $3.75 Commercial - $7.00 B. Special Provisions and Adjustments 1. The above rates are applicable to each residential and commercial consumers per meter per month or for any part of a month for which gas is used at the same location. 2. 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 reading" date or the "for services through" date, subjects the customer to immediate termination of gas service unless they have made other payment arrangements with the company. Restoration of service is subject to the Company's reasonable regulations and charges as authorized in paragraph B (5) below to include a $20.00 Reconnect Charge. 3. The amount of each monthly bill computed at the above rates shall be subject to the following adjustments: (a) Gas Cost Adjustment Each monthly bill at the above rate shall be adjusted for gas cost as foilows: (i) 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 1.0442 determined for the distribution system as the ratio of MCF purchased divided by the MCF sold for the 12 month period ended June 30, 1979. (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 "Re"). (c) The base city gate rate of $2.0279 per MCF. (ii) Correction of the estimated adjustment determined by (3) (a) (i) above shall be included as part of the adjustment for the second following billing month. The correcting factor (phown 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 (3) (a) (i) 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. (iii) The adjustment determined by (3) (a) (i) and (3) (a) (ii) above shall be multiplied by a tax factor of 1.06146 to include street and alley rental and state occupation tax due to increasing 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 (3) (a) (i), (3) (a) (iii) as follows: GCA = (3) (a) (i) + (3) (a) (iii) GCA = (1.0442) (Re - 2.00279) + 1.06146 4. 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 imp~s'ition rental, fee or charge (except state; county, city arid special district ad valorem taxes on net income) levied, assessed or imposed subsequent to January 31, 1980, upon or allocable to the Company's distribution operations, by any new amended law, ordinance or contract. 5. The 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 in effect, as set forth in Attachment "A" hereto which is incorporated herein. 6. The Company shall be allowed to continue to collect the 5¢ and 10¢ surcharges authorized by the Railroad Commission of Texas, Final Order in GUD-1604 until such time as the respective amounts authorized to be collected have been collected. The Company shall immediately notify the City when the amounts authorized to be collected have been collected. -..' 4. That any person, firm or corporation who refuses to comply with the terms and provisions of this ordinance shall be deemed guilty of a misdeameanor and, upon conviction, may be fined not to exceed Two Hundred Dollars ($200.00), and each day's violation shall constiture a separate offense. 5. The fact that there is a pending rate ~ncrease filing by Lone Star Gas Company which will be filed for a period of 12~days prior to the next regular City 'Council meeting and Lone Star Gas Company has been dilatory in furnishing supporting data creates an emergency and the Council deêlares that this ordinance shall be in full force and effect from and after its passage on first reading. Passed and approved this 28th day of October, 1982. (. l,~i Dick Faram - Mayor i (1/ 'I //1-;...''''/ ATTEST: ÇþÆ:. ~¿ary APPM AB. TO FORM AND L(Y: Re~Æ~l1!~b-