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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.