HomeMy WebLinkAbout2001-2528 - Ordinance - 10/11/2001ORDINANCE NO. 2528
AN ORDINANCE OF THE CITY OF CITY OF COLLEGE STATION, TEXAS
FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT TXU
GAS DISTRiBUTION'S RATES AND CHARGES WITHIN THE CITY
SHOULD BE CHANGED; DETERMINING JUST AND REASONABLE
RATES; ADOPTING GENERAL SERVICE RATES INCLUDING RATE
ADJUSTMENT PROVISIONS AND MISCELLANEOUS SERVICE
CHARGES TO BE CHARGED FOR SALES AND TRANSPORTATION OF
NATURAL GAS TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL
CUSTOMERS; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES;
PRESERVING REGULATORY RIGHTS OF THE CITY; PROVIDING FOR
REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the City of College Station ("City"), acting as a regulatory authority, has
previously suspended the effective date of TXU Gas Distribution's ("Company") application to
increase rates in the City in order to study the reasonableness of that application;
WHEREAS, the City of College Station, in a reasonably noticed public hearing
considered the Company's application, recommendations from the City's consultants who were
retained to evaluate the merits of the Company's application and a settlement agreement
negotiated with TXU Gas Distribution by City's representatives;
WHEREAS, the City has determined that the Company's rates within the City should be
changed and that the Company's application should be granted, in part, and denied, in part; now,
therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE
STATION, TEXAS:
SECTION 1. On May 31, 2001, TXU Gas Distribution, a division of TXU Gas Company
("Company") filed with the Governing Body of this municipality a Statement of Intent to Change
Residential, Commercial and Industrial Rates charged to consumers within this municipality.
Also filed was the Tariff for Gas Service in the South Region Distribution System ("Tariff for
Gas Service") and the supporting Cost of Service Schedules ("Schedules").
SECTION 2. That the existing rates and charges of TXU Gas Distribution are hereby
found, after reasonable notice and hearing, to be unreasonable and shall be changed as
hereinafter ordered. The changed rates resulting from this Ordinance are hereby determined to
be just and reasonable rates to be observed and in force within the City.
SECTION 3. The Company has agreed to modify the rates proposed in its Statement of
Intent and the modified rates are reflected in the revised Tariff for Gas Service attached hereto as
Exhibit A.
Ordinance No. 2528 Page 2
SECTION 4. The maximum general service rates for sales and transportation of natural
gas rendered to residential, commercial and industrial consumers within the city limits of College
Station, Texas by TXU Gas Distribution, a division of TXU Gas Company, a Texas corporation,
its successors and assigns, are hereby fixed and approved as set forth in the revised Tariff for Gas
Service attached hereto as Exhibit A. The rates reflected in the attached Rate Schedules entitled
Residential Service, Commercial Service, Industrial Sales, Industrial Transportation and
Industrial Sales & Transportation are found to be reasonable. Nothing contained herein shall
limit the right of industrial and transportation customers with competitive options to negotiate
rates with the Company that differ from approved tariffs.
SECTION 5. The Rate Adjustment Provisions set forth in the revised Tariff for Gas
Service attached hereto as Exhibit A and entitled Gas Cost Adjustment, Tax Adjustment, and
Weather Normalization Adjustment are approved.
SECTION 6. 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. Such
miscellaneous service charges are identified in Rate Schedules 9001 through 9007 of the
attached revised Tariff for Gas Service.
SECTION 7. Cities' rate case expenses are found to be reasonable and shall be
reimbursed by the Company. The Company is authorized to recover the rate case expenses
reimbursed to Cities and the Company's rate case expenses through a per Mcr surcharge based
upon total system sales as set forth in the Rider entitled Surcharges in the attached revised Tariff
for Gas Service. No rate case expenses incurred after November 15, 2001 may be recovered
under this ordinance.
SECTION 8. The aforesaid rate schedules and riders herein approved shall be effective
for bills rendered on or after approval of this Ordinance.
SECTION 9. The rates set forth in this Ordinance may be changed and amended by
either the City or Company in any other 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 with the City.
SECTION 10. If any other city in the South Region rate filing negotiates with TXU Gas
Distribution, prior to an appeal to the Railroad Commission of Texas, a rate that is lower than the
rates approved in this Ordinance, then the Company and the City agree that those same rates may
be implemented in the City upon passage of an Ordinance implementing said rates.
SECTION 11. Unless otherwise noted herein, other than TXU Gas Distribution (a named
party), no person or entity has been admitted as a party to this rate proceeding.
Ordinance No. 2528 Page 3
SECTION 12. 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.
SECTION 13. This Ordinance shall be served on TXU Gas Distribution by U.S. Mail to
the Company's authorized representative, Autry Warren, Rates Manager, TXU Business
Services, 1601 Bryan Street, Dallas, Texas 75201-3411.
SECTION 14. Nothing contained in this Ordinance shall be construed now or hereafter
in limiting or modifying, in any manner, the right and power of the City under law to regulate the
rates and charges of TXU Gas Distribution.
SECTION 15. All ordinances, resolutions, or pans thereof, in conflict with this
Ordinance are repealed to the extent of such conflict. To the extent Public Authority or
Commercial Contract Rates are in effect in the city those rates are specifically repealed, as they
are now a pan of the Commercial rates and are calculated in accordance with the revenue
requirement for Commercial customers.
PASSED AND APPROVED, this the 25th day of October, 2001.
ATTEST:
CONgqlE HOOKS, City Secretary
APPROVED:
L'"-YNN McILHANEY, May$
APPROVED:
' , 'A~ttlet~tl~le witti"Al~mv"~J,~' I
City Attorney
TXU
TARIFF FOR GAS SERVICE
IN THE
SOUTH REGION
DISTRIBUTION SYSTEM
TXU GAS DISTRIBUTION
EXHIBIT A TO ORDINANCE NO. 2528
Tariff for Gas Service TXU Gas Distribution
I
RATE SCHEDULE: Index of Rates & List of Cities I No. 4300
APPLICABLE TO: South Region Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 of 2
RATES:
4300
4301
4302
4311 -4313
4314
4321
Index of Rates & List of South Region Distribution System Cities
Residential Service
Commercial Service
Industrial Sales
Industrial Transportation
Industrial Sales and Transportation
RATE ADJUSTMENT PROVISIONS:
4308-1
4308.2
4308-3
4308-4
Gas Cost Adjustment
Tax Adjustment
Weather Normalization Adjustment
Surcharges
MISCELLANEOUS SERVICE CHARGES:
9001
9002
9003
9004
9005
9006
9007
Connection Charge
Read for Change Charge
Returned Check Charges
Delinquent Notification Charge
Main Line Extension Rate
Excess Flow Valve Charge
Certain Stand-by Gas Generators
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: I Index of Rates & List of Citiesii No. 4300
APPLICABLE TO: South Region Distribution System REVISION:
DATE:
EFFECTIVE DATE: PAGE: 2 OF
LIST OF SOUTH REGION DISTRIBUTION SYSTEM CITIES:
Abbott Hewitt Penelope
Austin Holland Pflugerville
Bartlett Hubbard Riesel
Bellmead H utto Robinson
Belton Jewett Rockdale
Beverly Hills Kosse Rogers
Bremond Lacy-Lakeview Rosebud
Bruceville-Eddy Leander Ross
Buckholts Leona Round Rock
Buffalo Lexington South Mountain
Caldwell Little-River Academy Streetman
Calvert Lorena Taylor
Cameron Lott Teague
Cedar Park Madisonville Tehuacana
Centerv~lle Malone Thorndale
Clifton Manor Thornton
College Station Marlin Thrall
Coolidge Mart Troy
Crawford McGregor Valley Mills
Fairfield Mexia Waco
Franklin Midway West
Georgetown Moody Woodway
Granger Nolanville Wortham
Groesbeck Normangee
Harker Heights Oakwood
Heame Oglesby
Tariff for Gas Service TXU Gee Distribution
I
RATE SCHEDULE: Residential Service I No. 4301
APPLICABLE TO: South Region Distribution Syatem REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
RESIDENTIAL SERVICE
Monthly Rate:
Subject to applicable adjustments, the following rates are the maximum applicable to residential
consumers per meter per month or for any part of a month for which gas service is available at the same
location.
Customer Charge (Minimum Bill)
All Consumption
7.0000
1.7840 Per Mcf
If the service period is less than 28 days in a month the customer charge is $.2500 times the numb'er of
days service. If the consumption contains a portion of an Mcf, a prorata portion of the per Mcf char. ge will
be made. -'
Bills are due and payable when rendered and must be paid within fifteen days from monthly billing date.
OTHER APPLICABLE RATE SCHEDULES
Rate Adjustment Provisions:
4308-1 Gas Cost Adjustment
4308-2 Tax Adjustment
4308-3 Weather Normalization Adjustment
4308-4 Sumharges
Miscellaneous/Service Charges:
9001
9OO2
9OO3
9O04
9O05
9006
Connection Charge
Read for Change Charge
Retumed Check Charges
Delinquent Notification Charge
Main Line Extension Rate
Excess Flow Valve Charge
Tariff for Gas Service TXU Gas Distribution
I
RATE SCHEDULE: I Commemlal Service
No.
43O2
APPLICABLE TO: South Region Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
COMMERCIAL SERVICE
Monthly Rate:
Customer Charge (Minimum Bill)
First 20 Mcf
Next 30 Mcf
Over 50 Mcf
$ 12.0000
7913 Per Mcf
.4913 Per Mcf
.3413 Per Mcf
If the service pedod is less than 28 days in a month the customer charge is $,4286 times the number of
days service. If the consumption contains a portion of an Mcf, a prorata portion of the per Mcf cha~e will
be made. ,-
Bills are due and payable when rendered and must be paid within fifteen days from monthly bi!ling date.
OTHER APPLICABLE RATE SCHEDULES
Rate Adjustment Provisions:
4308-1 Gas Cost Adjustment
4308-2 Tax Adjustment
4308-3 Weather Normalization Adjustment
4308-4 Sumharges
MiscellaneouslService Charges:
9001
9002
9003
9O04
9005
9006
9007
Connection Charge
Read for Change Charge
Retumed Check Charges
Delinquent Notification Charge
Main Line Extension Rate
Excess Flow Valve Charge
Certain Stand-By Gas Generators
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: I Industrial Sales
Nos.
4311
thru
43t3
APPLICABLE TO: South Region Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
INDUSTRIAL SALES
Monthly Rates:
Industrial Rates-N is hereby amended and revised as follows'
Subject to Company's limitations on the availability of each rate, Customer shall receive service under its
choice of one of the following rates in accordance with the rate selected by Customer as provided in the
contract: "
RATE 4311
First 125 Mcfor less $ 235.63 ,
All over 125 Mcf @ $ 1.84 per Mcf
RATE 4312
First 600 Mcf or less $1,053.94
All over 600 Mcr ~ $ 1.694 per Mcr
RATE 4313
First 1,250 Mcf or less $ 2,035.23
All over 1,250 Mcr (~ $ 1.634 per Mcf
In all other respects, Industrial Rates-N shall remain in effect as filed with the Cities in the South Region
Distribution System. 100% of the increase in industrial margin is to accrue to the benefit of TXU Gas
Distribution.
Industrial Rate N is closed to new customers as of the effective date of this tariff. Current customers
taking service pursuant to this tariffwill no longer be ehgible for this service upon contract termination.
Current customers may convert their existing contract to new Rate Schedule No. 4321. When the final
contract subject to Indus~al Rate N expires or is terminated, Industrial Rate N schedule w~ll be cancelled.
APPLICABLE RATE SCHEDULES:
Rate Adjustment Provisions
4308-2 Tax Adjustment
4308-4 Surcharges
' Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: Induatrial Transportation I No. 4314
APPLICABLE TO: South Region DIstribution Syatsm REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: I OF 1
INDUSTRIAL TRANSPORTATION
Monthly Rates:
The maximum fee for industrial transportation service on the South Region Distribution System ;s $0.812
per MMBTU delivered plus applicable taxes exclusive of the backup fee.
The above transportation fees include both the fees incurred to move the gas from the receipt point on
the transmission system to the c;ty gate and the fee incurred to move the gas from the ctty gate.to ~he
customer's facility.
If the fees for transporta§on service on the transmission system change, the revised fees will be included
~n the overall transportation rate charged to customers. ,.
100% of the increase in transportation fees recurred to move the gas from the city gate to the cu..stomer's
facility is to accrue to the benefit of TXU Gas Distribution.
Rate Schedule No. 4314 ~s closed to new customers as of the effective date of this tariff. Current
customers taking service pursuant to this tariff will no longer be eligible for this service upon contract
termination. Current customers may convert their existing contract to new Rate Schedule No. 4321.
When the final contract subject to Rate Schedule No. 4314 expires or is terminated, Rate Schedule No.
4314 will be cancelled.
APPLICABLE RATE SCHEDULES:
Rats Adjustment Provisions:
4308-2 Tax Adjustment
4308-4 Surcharges
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: Industrial Sales & Transportation I No. 432t
APPLICABLE TO: South Region Distribution Syetem REVISION:
DATE:
EFFECTIVE DATE: PAGE: 1 OF
INDUSTRIAl_ SALES AND TRANSPORTATION
Monthly Rates:
Customer Charge (M~nimum Bill) $200.00 per meter
Btu b'ansported per month Rate/MMBtu
First 600 MMBtu $0.4177 "
Next 650 MMBtu $0.2765 .~
Next 48,750 MMBtu $0.2185
$0.1372
Over 50,000 MMBtu
Availability:
These rates are available to gas customers who elect to take service under the terms and conditions of
the Optional Industrial Gas Sales or Gas Transportation Contract and ali schedules applicable to the service
selected.
Adjustment for Gas Cost:
Each industrial sales customer's monthly bill shall be adjusted for gas cost as follows'
The city gate rate referenced in Rate Schedule 4308-1 less all approved charges in excess of the
commodity cost of gas, as adjusted from time to time.
APPLICABLE RATE SCHEDULES:
Rate Adjustment Provisions
4308-1 Gas Cost Adjustment
4308-2 Tax Adjustment
4308-4 Surcharges
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: I Gas Cost Adjustment I No. 4308-1
APPLICABLE TO: South Region Distribution System REVISION:
DATE:
EFFECTIVE DATE: PAGE: t OF
GAS COST ADJUSTMENT
Each monthly bill shall be adjusted for gas cost as follows.
(1) The city gate rate increase or decrease applicable to current billing month sales shall be calculated
to the nearest $0.0001 per Mcf based upon:
(a) A volume factor of 1,0117 determined in establishing the above rate for the distribution system
as the ratio of adjusted purchased volumes divided by adjusted sales volumes. Said factor .shall
be adjusted annually following determination of the actual lost and unaccounted f(Sr gas
percentage based upon year ended June 30. ....
(b) The city gate rate applicable to volumes purchased during the current calendar month, expressed
to the nearest $0.0001 per Mcf (shown below as "Re"),
(c) A base city gate rate of $0.0000 per Mcf. ..
In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0,0001 per Mcf as
follows:
GCA = ((1.0117) (Re - $0.0000)]
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: I Tax Adiustment No. 4308-2
APPLICABLE TO: South Region Distribution System REVISION: 0
DATE:
, EFFECTIVE DATE: PAGE: 1 OF 1
TAX ADJUSTMENT
Each monthly bill, as adjusted above, shall be adjusted for municipal franchise fees (street and
alley rental taxes) and the state gross receipts taxes imposed by Sections 182.021 - 182.025 of
the Texas Tax Code. Municipal franchise fees are determined by each city's franchise ordinance.
Each monthly bill, as adjusted above shall also 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
December 31, 2000, upon or allocated to the Company's distribution operations, by any new or
amended law, ordinance or contract.
Municipal franchise fees (street and alley rental taxes) and the state gross receipts taxes imposed
by Sections 182.021 - 182.025 of the Texas Tax Code shall continue to be collected pursuant to
individual industrial contracts.
Tariff for Gas Servioa
TXU Gas Distribution
RATE SCHEDUU=~' Weather Normalization Adjustment No. 4308-3
APPLICABLE TO: South Region Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
WEATHER NORMALIZATION ADJUSTMENT
Effective with bills rendered during the October 2001 through May 2002 billing months, and
annually thereafter for the October through May billing months, the 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 dudng
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 pe~'od
included in the billing cycle. It will be determined separately for residential and commercial-.'
customers based on heating degree data recorded at the official weather station for each t6wn.
The adjustment to be made for each billing cycle will be calculated according to the follow/trig
formula:
WNA = NDD-A=O_ X M X AHL
ADD
Where: WNA =
NDD =
ADD =
M=
AHL =
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
The heating load to which the weather normalization adjustment is to be applied for residential
and 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.
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.
Tariff for Gas Service TXU Gas Distribution
RIDER: J Surcharges I NO. 4308-4
APPLICABLE TO: South Region Distribution System REVISION: 0
DATE:
EFFECTIVE DATE: PAGE: 1 OF 1
SURCHARGES
Rate Case Expense Surcharge:
Rate case expenses will be recovered through a surcharge designed for a s~x-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, commercial, Industrial
Sales, and Industrial Transportation customers.
Other Surcharges: .
TXU Gas Distribution w~ll recover other surcharges as authorized by the relevant municipality, the
Railroad Commission of Texas or the Texas Utihties Code. '
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULE: Miscellaneous Service Charges Nos. 900t thru 9007
APPLICABLE TO: As Referenced REVISION: 0
EFFECTIVE DATE: Ae Referenced PAGE: 1 OF 2
MISCELLANEOUS SERVICE CHARGES:
9001 Connection Charge (Residential & Commercial)
The following connectton charges apply:
Schedule Chares
Business Hours $ 35.00
After Houre 52.50 . ·
For 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 whim
the billable party has changed, with the following exceptions: '
(al For a builder who uses gas temporarily during construction or for display purpose.s..
(b) Whenever gas service has been temporarily interrupted because of system outa~ or
service work done by Company; or
(c) For any reason deemed necessary for company operations.
9002 Read For Change Charge (Residential & Commercial)
9003
9004
9OO5
A read for change charge of $12.00 is made when it is necessary for a company employee to read
the meter at a currently served location because of a change in the billable party.
Returned Check Charges (Residential & Commercial)
A retumed check handling charge of $16.25 is made for each check returned to the Company for
any reason.
Delinquent Notification Charge (Residential & Commercial)
A charge of $4.75 shall be mede 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 mede 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 (Residential & Commercial)
The charge for extending mains beyond the limit established by Franchise for residential, and
commercial customers shall be based on the actual cost per foot of the extension.
Tariff for Gas Service TXU Gas Distribution
RATE SCHEDULe=. Miscellaneous Service Charges I Nce. 9001 thru 9007
APPLICABLE TO: As Referenced REVISION: 0
EFFECTIVE DATE: As Referenced PAGE: 2 OF 2
9006
9007
Charge for Installing and Maintaining
and Excess Flow Valve
(Residential)
A customer may request the installation of an excess flow valve on a new service line or on a
service line being replaced provided that the service line will serve a single residence and operate
continuously throughout the year at a pressure of not less than 10 psig. The customer will pay the
actual cost incurred to install the excess flow valve. That cost will include the cost of the excess ·
flow valve, the labor cost required to install the excess flow valve, and other associated cos~ The
esUmated total cost to install an excess flow valve is $50.00. This cost is based on installing the
excess flow valve at the same Ume a service line is installed or replaced. The excess flow val~e
will be installed on the service line upstream of the customer's meter and as near as practical to
the main. '
A customer requiring maintenance, repair, or replacement of an excess flow valve will be r~quired
to pay the actual cost of locating and repairing or replacing the excess flow vane. The ¢o-~t to
perform this service will normally range from $200.00 to $2,000.00, depending on the amount of
work required. This cost will be determined on an individual project basis.
This tariff is being filed in accordance with the U.S. Department of Transportation rule requiring
the installation of an excess flow valve, if requested by a customer, on new or replaced service
lines that operate continuously throughout the year at a pressure of not less than 10 psig and that
serve a single residence. The rule further states that the customer will bear all costs of installing
and maintaining the excess flow valve.
Recovery of Connection Co, ts Associated
with Certain Stand-By Gas Generators
(Commercial)
Commercial customers installing stand-by gas generators to provide service in the event of an
interruption in electric service in facilities where gas service is not otherwise provided will
reimburse TXU Gas Distribution for the actual cost of acquiring and installing the regulator,
service line, and meter required to provide gas service for the stand-by generators. Gas service
provided for the stand-by generators will be billed at the applicable commercial rate.