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Home My WebLink AboutOrdinance 0289 ORDINANCE NO. 289 AA ORD:mANCE FIXllW .AND DETERMINJNG THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AAD COMMERCIAL CONSUMERS WITHJN THE CITY LIMITS OF NORTH RICHLAl'ID HILLS, TARRANT COUNTY, TEXAS, AAD PROVIDllfG FOR THE MA..NNER IN WHICH SUCH RATE MAY BE CHANGED, AWUSTED AAD AMENDED AAD DECLARJNG AA EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS: SECTION 1. Effective with the first gas bills rendered after the final approval of this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers wi thin the city limits of North Richland Hills by Lone Star Gas Company, a Texas corporation, its successors and assigns, is hereby fixed and deter- mined as follows: First 1,000 cu. ft. or fraction thereof $1.667 Gross; $1.50 Net Next 9,000 cu. ft. @ $1.056 per Mcf Gross; $.95 per Mef Net Next 15,000 cu. ft. @ .978 per Mcf Gross; .88 per Mef Net Next 25,000 cu. ft. @ .956 per Mef Gross; .86 per Mef Net Next 50,000 cu. ft. @ .933 per Mef Gross; .84 per Mef Net AllOver 100,000 cu. ft. @ .911 per Mef Gross; .82 per Mef Net No gas bill will be rendered to any residential or commercial consumer served under the above rate not consuming any gas during any monthly bill- ing period. AWUSTMENT The amount of each net monthly bill computed at the above stated rates shall be subject to the following adjustment: Plus an amount equiva- lent to the proportionate 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 July 1, 1969, upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. Each gross monthly bill shall be adjusted proportionately. Com- pany, at its option, may forego the application of this adjustment; however, failure of Company to apply such adjustment shall not constitute a waiver of Company's right from time to time, or at any time, to make such adjust- ment, in whole or in part, in any subsequent current monthly bill that may be applicable to such bill. Net rate shall apply to all bills paid wi thin ten days from monthly billing date; gross rate shall be applicable thereafter. The above rate is applicable to each residential and commercial consumer per month or for any part of a month for which gas is used at the same location. 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 in effect. SECTION 2. The rate set forth in Section 1 may be changed and amended by either the City or Company furnishing gas in the manner pro- vided 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 3. The fact that there is an imperative public need for an ordinance fixing and determining the rate for gas and gas service fur- nished to residential and commercial consumers creates an emergency, and the reading and passage of this ordinance at three separate meetings is hereby suspended and this ordinance shall take effect and be in fUll force from and after the date of its passage at a single meeting and the approval thereof by the Mayor. PASSED AAD APPROVED on this the 24th day of A.D. 19§:L... November , ATTEST: Secretary C)~~:-( -~( Mayor V~'J Ci ty of North Richland Hills, Texas COUNTY OF 'T'ARRAN'T' § § § STATE OF TEXAS I, Evalvn R. Huston , Secretary of the City of Nortn Richland Hills ,Tarrant County, Texas, hereby certify that the above and foregoing is a true and correct copy of an ordinance passed and approved by the City Council of the City of North Hi chl and Hills at a regular session held on the 24th day of November , 19 69 , as it appears of record in the Minutes of said City Council in Book X , page WITNESS MY IWifD AND SEAL OF SAID CITY, this the 24th day of November , A.D. 1969 P ~ ~A~_//J, 4 I ~ecretaÍ . Ci ty of North Riehland Hill~ Texas -2- ,.. ; . f Lone 51"or Gas Cornpany FO~T worm· DIVISIO~; OF DISì é11f,UTOf'~ 908-12 Monroe Street· Fort Worth, Texas 76102 G. F. PECK. ..JR. VIC£: PRESIC£NT November 11, 1969 ---- TO THE HONORABLE MAYOR AND CITY COUNCIL CITY OF ~ORTH RICHLAND HILLS , TEXAS Gentlemen: The exhibits accompanying the enclosed application are identical to those submitted to tpe City of ~Fort Worth since the gas distribution system serving your City is an integral part of the Fort Worth Distribution System. As has been customary, we are ~ffering you the same rate as that recently approved by the City of Fort Worth. We respectfully request your prompt consideration of and passage of the enclosed rate ordinance. Yours very truiy, LONE STAR GAS COMPANY By \L\~J \/ 7preSidentj\ GFPJr:jcn More than 6.000 friendly people working rogerher (0 serve our communities berter · . LONE STAR GAS COMPAAY APPLICATION TO THE CITY OFNORTH RICHLAl'ID HILLS, TEXAS FOR APPROVAL OF COMPAAY' S PROPOSED RFßIDENTIAL .AND COMMERCIAL RATE SCHEDULE FOR NATURAL GAS SERVICE Lone Star Gas Company TO THE HONORABLE MAYOR AAD CITY COUNCIL CITY OF NORTH RICHLAND HILLS, TEXAS Gentlemen: Lone Star Gas Company, a Texas company in business for more than 50 years, has been diligent in providing a dependable gas service to all of our customers. We have used every possible method to increase income and cut expenses. Our Company has given special attention to increased efficiency and individual productivity through greater use of mechanization, improved operating techniques, and training and super- vision of personnel. We are, however, subject to the same inflationary pressures that affect every business. We will briefly discuss a few of these factors. The cost of gas in the field has increased 41 percent in ten years from about ll.40¢ per Mcf in 1958 to 16.07¢ per Mcf in 1968. This was one of the principal factors in our recent application to the Rail- road Commission of Texas for a gate rate increase. After public hearings in which representatives of various cities and towns on our system par- ticipated, the Commission found that the Company was entitled to a 6¢ increase in its charge for gas delivered to the city gate for the use of residential and commercial customers. Since our Company must compete for available supplies of natural gas with many interstate pipelines to assure our customers of a steady and dependable supply, no reduction of More than 6,000 friendly people working together to serve our communities better this cost can be anticipated. We do state that our average cost of purchased gas has been favorable when compared with other pipeline companies. Distribution property and equipment costs have increased about 30 percent in the last ten years, so that the investment per customer in plant property and equipment has gone from $189 in 1958 to $245 in 1968. The Company must attract and hold qualified people who will render the high quality performance and service whiCh our cus- tomers demand and deserve. This entails paying a fair wage in competition with other employers. Since 1958, average wages, sal- aries, and fringe benefits over our system have increased some 50 percent in spite of the fact that automation and mechanized opera- tions, together with increased employee efficiency, have held the number of employees almost constant, although we are serving many more customers. The average salary per employee in our distribu- tion systems, which was $3,534 in 1958, increased to $5,290 in 1968 . The cost of borrowed money has gone up from 4 percent in 1958 to 7-1/4 percent last year, and the Company's tax bill for direct taxes on a per customer basis has increased from $14.18 ten years ago to $17.11 today. -2- With all these increased expenses, Lone Star has experienced decreasing earnings from year to year and it is evident that an increase in our burner tip rates to residential and commercial consumers is neces- sary to permit us to earn a fair return on our properties. We must request higher rates which are needed immediately to maintain our stand- ards of service and to obtain sufficient capital to permit necessary facility expansion to meet the ever growing demand for gas service. This is the first request for a rate increase based on revenue deficiencies in our distribution system since 1953. In requesting as prompt action as possible by your honorable body, we submit herewith the following six exhibits: (1) Original Cost Less Accumulated Provision for Depreciation (2) Reproduction Cost New Less Allowance for Age and Condition (3) Fair Value Rate Base (4) Income Statement (5) Revenue Deficiency Statement (6) Proposed Residential and Commercial Rate Ordinance We respectfully present this application and request that you place it on the agenda of your next meeting for consideration and passage of the proposed rate ordinance. Sincerely yours, LONE STAR GAS COMPANY By /rJ æ;:2-;:t /, j~ ~ag~1- /Ý.Y~ 61:.;- J? / F¿? Date presen-béd -3- LONE STAR GAS COMPfù\JY FORT HORTH, TEXAS DISTRIBUTION SYSTE.l'vl ORIGINAL COST LESS ACCU}'wLATED PROVISION FOR DEPRECIATION AS OF DECE}ffiER 31, ]968 Distribution Plant: Land Land Rights structures and Improvements Mains Meas. &Reg. Sta. Equip. Services Meters Meter Installations House Regulators House Regulator Installations Total Distribution Plant General Plant Allocated Franchises and Consents Construction Work in Progress Retirement Work in Progress Contributions in Aid of Construction Working Capital Original Cost $ 13 371+ 19 25 309 1+6 70 379 12 21 606 588 66 243 175 58 5 230 564 1+9 3 929 177 '(8 350 056 23 581 032 97 250 226 75 32 299 885 23 Total Original Cost Less Depreciation Accumulated Provision For Depreciation -0- $ 9 606 39 26 712 89 8 200 935 53 92 299 02 1 985 297·89 1 491 347 32 132 866 33 220 535 19 94 975 34 12 25Lf 575 90 Original Cost Less ~reciation $ 13 374 19 15 703 07 43 666 23 13 405 653 13 150 876 56 3 245 266 60 2 437 830 1+6 217 189 90 360 497 78 155 251 41 20 045 309 33 2 342 237 97 -0- 169 187 47 (2 474 54) (616 832 24) 925 445 28 22 862 873 27 LONE STAR GAS COMPANY FORT HORTH, 'I'EXAS DISTRIBUTION SYSTEM: REPRODUCTION COST NEH LESS ALLOWANCE FOR AGE lŒD CONDITION AS OF DECEMBEH 31, 1968 Distribution Plant Land-J<- Land Rights-J<' Structures and Improvements-X- Mains Meas. & Reg. Sta. Equip. Services Meters Meter Installations House Regulators House Regulator Installations Total Distribution Plant General Plant Allocated Franchises and Consents Construction Work in Progress Retirement Work in Progress Contributions in Aid of Construction Working Capital Total R.C.N. Less Allowance * Per Books Reproduction Cost New $ 13 374 19 25 309 L~6 70 379 12 29 483 125 31 355 003 55 7 31+'7 8'78 55 4 921 734 77 531 03L~ 65 56'7 98h 33 164 962 00 43 480 785 93 Allowance Reproduction For Age And Cost New Less Condition Allowance -0- $ 13 374 19 $ 9 606 39 15 703 07 26 712 89 43 666 23 4 422 468 80 25 060 656 51 53 250-53 301 753 02 1 102 181 78 6 245 696 77 738 260 22 4 183 474 55 79 655 20 451 379 45 85 197 65 482 786 68 -0- 164 962 00 6 517 333 46 36 963 452 47 2 342 237 97 -0- 169 187 47 (2 474 54) -0- 925 4h5 28 40 397 848 65 LONE STAR GAS COMPANY FORT WORTH, TEXAS DISTRIBUTION SYS1~1 FAIR VALUE RATE BASE AS OF DECE0ffiER 31, 1968 ... Original Cost Reproduction Less Accum. Cost Less Fair Prov. For Depr. Allowance Value - Distribution Plant: Land $ 13 374 19 $ 13 374 19 $ 13 37q 19 Land Rights 15 703 07 15' 703 07 15 703 07 Structures & Improvements 43 666 23 43 666 23 43 666 23 Mains 13 405 653 13 25 060 656 51 19 233 154 82 Meas.& Reg. Sta. Equip. 150 876 56 301 753 02 226 314 79 Services 3 245 266 60 6 2Lf5 696 77 4 745 ¡~81 69 Meters 2 437 830 46 4 183 474 55 3 310 652 50 Meter Installations 217 189 90 451 379 45 334 284 68 House Regulators 360 497 78 482 786 68 421 642 23 House Regulator Installations 155 251'41 164 962 00 160 106 70 Total Distribution Plant 20 045 309 33 36 963 452 47 28 504 380 90 General Plant Allocated 2 342 237 97 - 2 3Lf2 237 9'7 2 342 237 97 Franchises and Consents -0- -0- -0- Construction Worß in Progress 169 187 47 169 187 47 169 187 47 Retirement Work in Progress (2 474 54) (2 474 54) (2 474 54) Contributions in Aid of Canst. (616 832 24) -0- (308 In6 12) Working Capital (Schedule 1) 925 Lf45 28 925 445 28 925 445 28 Total Fair Value Rate Base 22 862 873 27 40 397 848 65 31 630 360 96 LOJ\TE STAn GAS COMPANY FORT WOHTH, 1'EXi\S DIS'l'RIBD'I'10N SYSTEM REVENUE, EXPEJirSES, NET HJCOME AND JillJlJSTì;Ú'lq'l' FOR KNO\'m CHANGES Tì\ŒLVE MOWIllS ENDING DECErvillER 31, 1968 Per Books Adjusted ". Revenues Residential Gas Sales Commercial Gas Sales Industrial Gas Sales Total Revenues $11 517 942 38 2 037 031 48 3 898 573 56 17 453 547 42 189 958 61 17 643 506 03 $10 881 198 57 1 741 rr69 91 4 4!~6 863 39 17 069 831 87 293 748 54 17 363 580 41 Total Gas Sales Other Gas Revenues Expenses Gas Purchased Residential Commercial Industrial Company Used Unaccounted For Total Expenses (Excl. F.I.T.) 4 650 787 65 5 109 536 35 989 918 05 1 010 577 00 2 952 101 88 3 240 796 30 24 0!~2 84 30 224 47 611 980 34 715 705 82 9 228 830 76 10 106 839 94 586 697 24 613 755 72 226 III 75 226 III 75 396 362 32 414 642 55 232 223 07 232 223 07 617 389 39 645 863 39 277 860 19 277 860 19 226 550 27 236 998 77 300 289 73 300 289 73 319 704 90 332 425 96 503 544 54 558 711 17 48 303 05 48 303 05 1 628 684 88 1 605 343 94 (7 592 31) (7 592 31) 847 018 28 847 018 28 15 431 978 06 16 438 795 20 2 211 527 97 924 785 21 806 420 02 127 019 84 1 405 107 95 797 765 37 4.44 2.5~ Total Gas Purchased Distribution Operations - Labor Distribution Operations - S & E Distribution Maintenance - Labor Distribution Maintenance - S & E Customer Ac~ounts - Labor Customer Accounts - S & E Sales Expense - Labor Sales Expense - S & E Administrative & General - Labor Administrative & General - S & E Uncollectible Bills Taxes Other Than Federal Income Merchandise Revenue Net Provision For Depreciation Net Income Before Fed. Inc. Tax Provision For Federal Income Tax Net Operating Income Return on Rate Base of $::'~1,630,3¿0.96 Line No. '. ." ". LONE STAR GAS COMPANY FORT ì'i'ORTH, TEXAS DISTRIBUTION SYSTEM RE\~TUE DEFICIENCY RELATED TO DELIVERIES TO RESIDENTIAL AND COW1ERCIAL CUSTO~n~RS YEAR 1968 1 2 Rate Base at December 31, 1968 Rate of Return 3 4 Net Operating Income Required (Line 1 X Line 2) Adjusted 1968 Net Operating Income 5 6 Net Operating Income Deficiency (Line 3 Less Line Lf) Ratio Incremental Net Income to Incremental Revenue 1/ Increase in Revenue Required (Line 5 ~ Line 6) 7 8 Increase in Revenue Required Per MCF (14,563,1+40.9 MCF) 1/ Incremental Revenue Incremental Occupation Tax Incremental Street and Alley Rental Incremental Taxable Income Incremental Federal Income Tax at 52.8% Incremental Net Operating Income 1.00000 .01847 .03533 .94620 .49959 .44661 $31 630 360 96 X 7.25% $ 2 293 201 17 797 765 37 $ 1 495 435 80 .44661 $ 3 348 415 40 22.99¢ LEGAL AFFIDAVIT THE STATE OF TEXAS: COUNTY OF TARRANT: Before me, the undersigned authority on this day personally appearectEleanor Lewiª<:nown to me to be a credible person. who first being sworn, deposed and upon her oath said: h h Bookkeeper T at s e IS tIfe M¡d Cities Daily News of the , a newspaper which has been regularly and continuously published and of general circulatiöh in the City/Town of Hurst , for a period of more than one year next preceding the first publication of the attached LEHta] Notice and that he caused said notice to be published in said newspaper on the following date/so 3/0/70 That the attached is a true and correct copy of said notice as pub- lished on said date/s in said ~:id Cities Da i ly News (1/7 ~í C¡¿¿.â--t,~- L<../IA.~ Sworn to and subscribed before me, this the~day of~~ 1 1970 ~ Public, Tarrant County, Texas ATTACH LEGAL COpy HERE which gas is used at the samé location. In addition to the_oresaid AN ORDINANCE FIXING rates, Company shall have the AND DETERMINING THE 1 right to collect such l'easonable GENERAL SERVICE RATE, charges as are necessary to TO. BE CHARGED FOR conduct its business and to SALES OF NATURAL GAS TO carry out its reasonable rules RESIDENTIAL AND COM- and regulations in effect. MERCIAL CONSUMERS I SECTION 2. The rate set WITHIN THE' CITY LIMITS forth in Section 1 may be changed and amended by ei- OF NORTH' RICHLAND ther the City or Company fur- HILLS, TARRANT COUNTY, nishing gas in the maImer TEXAS, AND PROVIDING provided by law. Service here- FOR THE MANNER IN under is subject to the orders WHICH SUCH RATE MAY BE pf regúlatory bodies having CHANGED, ADJUSTED AND . jurisdiction, and to the Compa- AMENDED AND DECLAR-, ny's Rules and Regulations ING AN EMERGENCY. I currently on file in the Compa- ny's of(¡ce. SECTION 3. The fact that there is an imperative public need for an ordinance fixing and determining the rate for gas and gas service furnished SECTION 1. Effective with to residential and commercial the first gas bills 'rendered aft- consumers creates an emer- er the final approval of this gency, and the reading and ordinance, the maximum gen- , passage of this ordinance at eral service rate for sales ofl three separate meetings is natural gas rendered to resi· hereby suspended and this or- dential 'and commercial co.n- dinance shall take effect and sumers within the dty'limits of be in full force from and after North Richland Hills by Lone the date of its passage at a I Star Gas Company, a Texas single meetingu and the ap-\ corporation, its sUcCessots and proval thereof by the Mayor. assigns, is hereby fixed and PASSED AND APPROVED . determined as follows: on this the 24th day of Novem- I 'I ber, A.D. 1969. First 1,000 cu. fl or fraction thereof $1.667 Gross; $1.50 Net. Next 9,000 cu. ft. at $1.056 'per Mcf Gross; $.95 pet Md Net. , Next 15,000 cu. ft.'.at .978 per ,McfGross; .88 perMcf Net. Next 25,000 eu. ft. at.. per Mcf Gross; .86 per Mcf Net. STATE OF TEXAS Next 50,00(1 C\1. n. at ,.933 per COUNTY OF TARRANT Md Gross;.1M per Met Net. AllOver 100,000 cu. ft. àt .911 per Mcf Gross;.82 per Mcf Net. I, 'Evalyn R. Huston, Secre- tary of the City of North Rich- land Hills, Tarrant County, Texas, hereby certify that the No gas bill will be rendered to above and foregoing is a true any residential or commercial and correct copy of an ordi- consumer served under the nancepàssed and approved by above rate not èonsuming any the City Council of the City of gas during any monthly billing North Richland Hills at a regu- period. lIar session held on the 24~h day ADJUSTMENT . of November, 1969, as It ap- The amount of each net I pears of record in the Minu~es monthly bill computed at the of said City Council in Book X. above stated rates shall be subject to the following adjust- ment: Plus an amount equiv- alent to the proportionate 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 ÌÌI1posed sùbSequent to July 1, 1969, upon or allocable to the ·Comany's distribution opera- MC Legal No. 6082 pUblish .3-!J. ..:_':"ro ....... ...n.. no..'IJ ^P arnøìviØl'1 ORDIN~q¡: NO;,289 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS: -s.....calvin L. Luper Mayor City of North Richland Hills, Texas WITNESS MY HAND AND SEAL OF SAID CITY, this the 24th day of November, A.D. 1969. -s-Evalyn R. Huston Secretary I City of North RiclUand Hills, Texas