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HomeMy WebLinkAbout2000-2465 - Ordinance - 08/24/2000ORDINANCE NO. 2465 AN ORDINANCE OF THE 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; REJECTING PLANT INVESTMENT AND COST OF SERVICE AUTOMATIC ADJUSTMENT CLAUSES; APPROVING ADJUSTMENT FACTORS FOR WEATHER NORMALIZATION, FRANCHISE FEES, TAXES AND OTHER GOVERNMENTAL IMPOSITIONS; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PRESERVING REGULATORY RIGHTS OF THE CITY; ORDERING THAT THIS ORDINANCE BE SERVED ON Txru GAS DISTRIBUTION; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES. 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, considered the Company's application, a report from the City's consultants who were retained to evaluate the merits of the Company's application, and a settlement agreement between the City and the Company in a reasonably noticed public hearing; 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. That the existing rates and charges of TXU Gas Distribution are hereby found, at~er 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 2. That it is hereby ordered that the Company's rates in the City be set on the basis of a 4.43% increase in overall system average revenues with an equal percentage increase allocated to each class of customers. The increase in system average revenues includes a $12,772 decrease in other revenues (associated with service charges) over test year levels. The system revenue deficiency of $1,213,348 when allocated on an equal percentage basis of 4.51% to all classes reflects the following: $278,199 increase for residential customers, $135,171 increase for commercial customers, $4,007 increase for industrial customers, and $795,971 increase for transportation customers. Residential, commercial and industrial rates resulting from this Ordinance shall be adjusted upward or downward from a base per Mcf city gate rate set by the Railroad Commission of Texas by a Gas Cost Adjustment Factor authorized by the Railroad Commission of' Texas. Pursuant to Texas Utilities Code Section 103.001 the City of College Station establishes rates and charges for residential, commercial, industrial and transportation customers consistent with these allocations. To the extent that industrial and transportation customers have competitive options, the rates established by this ordinance constitute "not to exceed" rates in recognition of the right of' such customers to negotiate reasonable rates. SECTION 3. The Plant Investment and Cost of Service automatic adjustment clauses proposed by the Company are unreasonable and are specifically rejected. SECTION 4. The Company shall receive a weather normalization adjustment as requested in its application. SECTION 5. The rates set forth above shall be adjusted upward or downward for changes in franchise fees, taxes and other governmental impositions as requested by the Company. SECTION 6. That current residential and commercial monthly customer charges of $8.00 and $14.00 are reasonable and shall not be changed. SECTION 7. That the miscellaneous service charges and line extension charges proposed by the Company are reasonable and are hereby approved as set forth in Attachment A. SECTION 8. The Company shall file with the City, no later than the effective date of the changed rates ordered herein, revised Tariffs and Schedules, together with rate design workpapers and supporting data as requested, setting forth the rates, tariffs and changes based upon the increases and changes prescribed herein. Such Tariffs and Schedules may be modified or amended by the City Council to comply with the provisions of' this Ordinance within twenty (20) days from the date of filing with the City, otherwise the same shall be considered approved as filed. SECTION 9. That the fees and expenses associated with the City retaining counsel and consultants to investigate the Company's application are reasonable and are to be paid by the Company and recovered from ratepayers through a system-wide surcharge spread over a six month period. The Company shall provide a monthly accounting to the City showing, by months, the amount recovered through the surcharge. SECTION 10. That the rate changes ordered herein become effective for billing on August 25, 2000. SECTION 11. This Ordinance shall be served on the Company by U.S. mail to the Company's authorized representative, Don Fazzino, TXU Electric/TXU Gas Distribution, Texas Utilities Company, 297 North Earl Rudder Freeway, Bryan, Texas 77802-4810. 2 SECTION 12. That nothing contained in this Ordinance shall be construed now or hereat~er in limiting or modifying, in any manner, the right and power of the City under law to regulate the rates and charges of the Company. SECTION 13. All ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the extent of such conflict. SECTION 14. 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. PASSED AND APPROVED, this the 24th day of AUGUST ,2000. ATTEST: CONNIE HOOKS, City Secretary APPROVED: LYNN'~'IcILHANEY, Mayor APPROVED: CityAttorney Attachment A Approved Service Charges Connection (Business Hours) Connection (After Hours) Read For Change Returned Cheek Delinquent Notification Charge $35.00 $52.50 $12.00 $16.25 $ 4.75 A Read For Change charge is to be imposed 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. A Delinquent Notification Charge will be charged for each trip to a customer's residence or business when an amount is owed to the Company that is past due. This charge will not be made if the trip is made for safety investigations or when service has been temporarily interrupted because of a system outage or service work done by Company. Mainline Extension Rate The Company may charge its actual cost for mainline extension with credit made for the free limit established by the franchise. 4 TXU TXU Electric & Gas 297 N Earl Rudder Fwy Bryan TX 77802 Tel: 979-774-2525 Fax: 979~774-2528 dfazzinl~txu.com Don J F,,--Ino Jr Bryan Manager AUGUST 29, 2000 TO THE CITY OF COLLEGE STATION: Pursuant to Section 8 of Ordinance No. 2465 TXU Gas Distribution (f/k/a TXU Lone Star Gas) hereby respectfully files its revised Tariffs and Schedules setting forth the rates, tariffs, and charges based upon the increases and changes prescribed in that Ordinance. Also filed herewith are four pages of workpapers and supporting data showing that these revised Tariffs and Schedules in fact do comply with the terms of that Ordinance. Please indicate your receipt of this filing by signing in the place provided below. Thank you for your assistance. Very truly yours, / ~ ' /' xc with attachments: Mr. Geoffrey M. Gay RECEIPT IS HEREBY ACKNOWLEDGED OF THIS FILING BY TXU GAS DISTRIBUTION TOGETHER WITH ALL OF THE DOCUMENTS REFERENCED ON THIS PAGE: City Secretary TARIFFS AND SCHEDULES REVISED TARIFFS & SCHEDULES COMPANY: APPLICABLE TO: TYPE OF SERVICE: EFFECTIVE DATE: TXU GAS DISTRIBUTION CITY OF COLLEGE STATION, TEXAS DISTRIBUTION SYSTEM RESIDENTIAL, COMMERCIAL, INDUSTRIAL AND TRANSPORTATION SALES AND SERVICE CHARGES AUGUST 25, 2000 ITEM A. RATES Subject to applicable adjustments, the following rates are the maximum applicable to residential, commercial and industrial consumers per meter per month or for any part of a month for which gas service is available at the same location. Residential: Customer Charge All Consumption $ 8.0000 @ 3.0010 Per Mcf If the service period is less than 28 days in a month the customer charge is $.2857 times the number of days service. If the consumption contains a portion of an Mcf, a prorata portion of the per Mcf charge will be made. Commercial Customer Charge $ 14.0000 First 20 Mcf @ 3.6960 Per Mcf Next 30 Mcf @ 3.3960 Per Mcf Over 50 Mcf @ 3.2460 Per Mcf If the service period is less than 28 days in a month the customer charge is $.5000 times the number of days service. If the consumption contains a portion of an Mcf, a prorata portion of the per Mcf charge will be made. Bills are due and payable when rendered and must be paid within fifteen days from monthly billing date. Residential Off-Peak Sales Discount: An off-peak sales discount of $.25 per Mcf will apply to residential customers' volume purchased in excess of 8 Mcf for each of the billing months May through October. Page 1 of 6 Industrial: Industrial Rates-N is hereby amended and revised as follows: Monthly Rates: 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 1 First 125 Mcf or less $224.96 All over 125 Mcf @ 1.690 per Mcf RATE 2 First 600 Mcf or less $963.18 All over 600 Mcf @ 1.516 per Mcf RATE 3 First 1,250 Mcf or less $1,842.63 All over 1,250 Mcf @ 1.445 per Mcf In all other respects, Industrial Rates-N shall remain in effect as filed with the City of College Station, Texas. 100% of the increase in industrial margin is to accrue to the benefit of TXU Gas Distribution. Transportation: The maximum fee for electric generation and cogeneration transportation service is $0.1739 per MMBtu delivered plus applicable taxes. The maximum fee for commercial transportation service for state accounts and for commercial transportation service for air conditioning service is $1.1308 per MMBtu delivered plus $14.00 per meter per month plus applicable taxes. The maximum fee for industrial transportation service is $0.6900 per MMBtu delivered plus applicable taxes. 100% of the increase in transportation fees is to accrue to the benefit of TXU Gas Distribution. Page 2 of 6 ITEM B. GAS COST ADJUSTMENT Each residential and commercial monthly bill at the above rates shall be adjusted for gas cost as follows: (1) 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) (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"), less The base city gate rate of $2.7535 per Mcf, multiplied by (c) A volume factor of 1.0000 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes. (2) Correction of the estimated adjustment determined by Item B (1) above for the second preceding billing month shall be included as part of the adjustment. The correcting factor (shown 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 Item B (1) 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. In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by Item B (1) and Item B (2) as follows: GCA = [Item B (1) + Item B (2)] GCA = [(1.0000) (Re - $2.7535) + C] Page 3 of 6 ITEM C. Weather Normalization Adjustment: The Weather Normalization Adjustment clause authorized in the rate ordinance dated June 24, 1993 will continue in effect with one change. The actual residential base load will be used to determine the residential heating load rather than the residential class base load. There is no change in the determination of the base load for commercial customers. The revised weather normalization adjustment clause reads as follows: Effective with bills rendered during the October 2000 through May 2001 billing months, and annually thereafter for the October through May billing months, the above 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 during 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 period included in the billing cycle. It will be determined separately for residential and commercial customers based on heating degree data recorded by the Austin weather station. The adjustment to be made for each billing cycle will be calculated according to the following formula: NDD- ADD Vi'rNA = 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. Page 4 of 6 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. ITEM D. TAX ADJUSTMENT Each monthly bill at the above residential and commercial rates, 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 - 182.024 of the Texas Tax Code. 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, 1998, 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 - 182.024 of the Texas Tax Code shall continue to be collected pursuant to individual industrial contracts. ITEM E. SCHEDULE OF SERVICE CHARGES (1) Connection Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of: Schedule Charge Business Hours $ 35.00 After Hours 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 when the billable party has changed, with the following exceptions: (a) For a builder who uses gas temporarily during construction or for display purposes. (b) Whenever gas service has been temporarily interrupted because of system outage or service work done by Company; Page 5 of 6 or (c) For any reason deemed necessary for company operations. (2) Read For Change Charge 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. (3) Returned Check Charges (4) A returned check handling charge of $16.25 is made for each check returned to the Company for any reason. Delinquent Notification Charge A charge of $4.75 shall be made 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 made 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. ITEM F. MAIN LINE EXTENSION RATE The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. Page 6 of 6 WORKPAPERS AND SUPPORTING DATA LINE NO. TXU GAS DISTRIBUTION BRYAN/COLLEGE STATION DISTRIBUTION SYSTEM APPROVED RATE CALCULATION - RESIDENTIAL TEST YEAR ENDED 12 31 98 1 APPROVED RESIDENTIAL REVENUE REQUIREMENT 2 LESS REVENUE FROM CUSTOMER CHARGE 3 LESS REVENUE RELATED TAXES O 4 REVENUE REQUIRED FROM COMMODITY RATE 5 RESIDENTIAL PEAK PERIOD MCF 6 RESIDENTIAL OFF PEAK PERIOD MCF TOTAL RESIDENTIAL MCF 8 RESIDENTIAL PEAK PERIOD MCF 9 RESIDENTIAL OFF PEAK PERIOD MCF - BLOCK 1 10 RESIDENTIAL OFF PEAK PERIOD MCF - BLOCK 2 11 TOTAL RESIDENTIAL MCF 12 REVENUE REQUIRED FROM COMMODITY RATE 13 PLUS (OFF PEAK PERIOD BLOCK 2 MCF X .2500) 14 TOTAL 15 DIVIDED BY TOTAL MCF 16 COMMODITY RATE 17 OFF PEAK PERIOD COMMODITY RATE DISCOUNT 18 CUSTOMER CHARGE REVENUE 19 COMMODITY RATE REVENUE 20 OFF PEAK PERIOD COMMODITY RATE DISCOUNT REVENUE 21 REVENUE RELATED TAXES REVENUE 22 TOTAL 289,404 X $ 8.00 4.8869% 6,446,691 2,315,232 315,043 3,816,416 1,042,036 230,039 1,272,075 1,042,036 225,503 4,536 1,272,075 3,816,416 1,134 3,817,550 1,272,075 3.00104161 (0.2500) 2,315,232 3,817,550 (1,134) 315,043 6,446,691 ADJUSTED MCF 230,039 1,042,036 1,272,075 OFF PEAK MCF 225,503 4,536 230,039 /1/RESIDENTIAL MCF BILL ANALYSIS MCF OFF PEAK PERIOD 230,039 PEAK PERIOD 1,042,036 TOTAL 1,272,075 RATIO 0.18084 0.81916 1.00000 RATIO 0.98028 0.01972 1.00000 121 OFF PEAK BILL ANALYSIS BLOCK MCF BLOCK MCF 0 TO 8.0 225,503 OVER 8 0 4,536 TOTAL 230,039 Approved Residential Rates Customer Charge $ 8 0000 All Consumptmn $ 3.0010 Per Mcf Off-Peak Sales D~scount $ 0.2500 Per Mcf Base City Gate Rate $ 2.7535 Volume Factor 1.0000 LINE NO. TXU GAS DISTRIBUTION BRYAN/COLLEGE STATION DISTRIBUTION SYSTEM APPROVED RATE CALCULATION - COMMERCIAL TEST YEAR ENDED 12 31 98 1 APPROVED COMMERCIAL REVENUE REQUIREMENT 2 LESS REVENUE FROM CUSTOMER CHARGE 3 LESS REVENUE RELATED TAXES O 4 REVENUE REQUIRED FROM COMMODITY RATE 5 COMMERCIAL BLOCK 1 MCF 6 COMMERCIAL BLOCK 2 MCF 7 COMMERCIAL BLOCK 3 MCF 8 TOTAL COMMERCIAL MCF 9 REVENUE REQUIRED FROM COMMODITY RATE 10 PLUS (BLOCK 2 MCF X .3000) 11 PLUS (BLOCK 3 MCF X .4500) 12 TOTAL 13 DIVIDED BY TOTAL COMMERCIAL MCF 14 BLOCK 1 COMMODITY RATE 15 BLOCK 2 COMMODITY RATE 16 BLOCK 3 COMMODITY RATE 17 CUSTOMER CHARGE REVENUE 18 BLOCK 1 COMMODITY RATE REVENUE 19 BLOCK 2 COMMODITY RATE REVENUE 20 BLOCK 3 COMMODITY RATE REVENUE 21 REVENUE RELATED TAXES REVENUE 22 TOTALREVENUE /1 BILL ANALYSIS VOLUMES COMMERCIAL SUMMER COMMERCIAL WINTER SCHOOLS TOTAL RATIO ADJUSTED MCF 24,788 X $ 14.00 4.8869% FIRST NEXT OVER 20 MCF 30 MCF 50 MCF 154,082 109,460 521,044 0 0 0 0 0 0 154,082 109,460 521,044 0.19839 0.13951 0.68410 154,082 109,460 521,044 3,132,309 346,752 153,073 2,632,484 154,082 109,460 521,044 784,586 2,632,484 32,838 234,470 2,899,792 784,586 3.69595175 3.39595175 3.24595175 346,752 569,480 371,721 1,691,284 153,073 3,132,310 TOTAL 784,586 0 0 784,586 1.00000 784,586 Approved Commemial Rates Customer Charge First 20 Mcf @ Next 30 Mcf O Over 50 Mcf ~ $ 14.0000 $ 3 6960 $ 3.396O $ 3.2460 Per Mcf Per Mcf Per Mcf Base City Gate Rate $ 2.7535 Volume Factor 1.0000 TXU GAS DISTRIBUTION BRYAN/COLLEGE STATION DISTRIBUTION SYSTEM APPROVED RATE CALCULATION - INDUSTRIAL TEST YEAR ENDED 12 31 98 Line No. 1 Approved Industrial Revenue Requirement 2 Less Revenue Related Taxes O 3 Less GCA 4 Less $1.00 Gas Cost In Base Rate 5 Approved Base Rate Revenue 6 7 Industrial Revenue From Present Rates 8 Less Revenue Related Taxes O 9 Less GCA 10 Less $1.00 Gas Cost In Base Rate 11 Present Base Rate Revenue 12 13 Approved Base Rate Revenue 14 Present Base Rate Revenue 15 Multiplier For Change In Base Rate Revenue 16 17 Rate 1 18 F~rst 125 Mcf 202.39 - 19 Over 125 Mcf 1.580 - 20 21 Rate 2 22 23 24 25 Rate 3 26 27 28 29 Proof of Revenue at the Am3roved Rates 30 31 Rate 1 32 F~rst 125 Mcf or less 33 Over 125 Mcf 34 Subtotal 35 36 Rate 2 37 F~rsl 600 Mcf or less 38 Over 600 Mcf 39 Subtotal 40 41 Rate 3 42 First 1250 Mcf or less 43 Over 1250 Mcf 44 Subtotal 45 46 Subtotal of Rales 1, 2, and 3 47 GCA Revenue 48 Subtotal 49 Revenue Related Taxes 50 Total 92,865 0.01997 1,855 22,624 X 1.8976 = 42,931 22,624 X 1.0370 X 1.0000 = 23,461 24,618 88,858 0.01997 1,774 22,624 X 1.8976 = 42,931 22,624 X 1.0370 X 1.0000 = 23,461 20,692 24,618 20,692 1.18973516 83.41 = 118.98 X 1.18973516 = 141.55 + 83.41 = 224.96 1.00 = 0.580 X 1.18973516 = 0.690 + 1.00 = 1.690 F~rst600Mcf 905.26 - 600.00 = 305.26 X 1.18973516 = 363.18 + 600.00 = 963.18 Over 600 Mcf 1.434 - 1.00 = 0.434 X 1.18973516 = 0.516 + 1.00 -- 1.516 First 1250 Mcf 1,748.12 - 1,250.00 = 498.12 X 1.18973516 = 592.63 + 1,250.00 = 1,842.63 Over 1250 Mc 1.374 - 1.00 = 0.374 X 1.18973516 = 0.445 + 1.00 = 1.445 9 X 12 X 224.96 = 24,296 9,000 = 6,995 X 1.690 = 11,821 ( 15,424 X 1.037 )- 36,117 1 X 12 X 963.18 = 11,558 ( 7,200 X 1.037 )- 7,200 = 266 X 1.516 = 404 11,962 0 X 12 X 1,842.63 = 0 ( 0 X 1.037 )- 0 = 0 X 1.445 = 0 0 48,079 22,624 X 1.8976 = 42,931 91,010 91,010 X 0.02038 1,855 92,865 TXU GAS DISTRIBUTION BRYAN / COLLEGE STATION DISTRIBUTION SYSTEM APPROVED TRANSPORTATION RATES TEST YEAR ENDED 12 31 98 Line Distribution Pipeline Total Rate Class Rate Rate Rate 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Electric Generation Rate Per MMBTU Commercial Rate Per MMBTU Plus $14 Per Month Per Meter Customer Charge Industrial Rate Per MMBTU Contract Project Amortization Fee Proof Of Distribution Revenue From ADoroved Rates Electric Generation Rate Class Commercial Commercial Customer Charge Revenue (62 X 12 X $14) Industrial Contract Project Amortization Fee Total Revenue Taxes O Total Revenue From Approved Rates Target Revenue From Approved Rates Difference 53,140 $ 0.1489 $ 0.0250 $ 0.1739 $ 0.6018 $ 0.5290 $ 1.1308 $ $ 0.4000 0.9000 $ 0.2900 0.6900 0.9000 MMBTU Rate Revenue 5,664,561 $ 0.1489 843,610 252,593 $ 0.6018 152,010 10,416 547,482 $ 0.4000 218,993 $ 0.9000 47,826 0.00541 6,464,636 1,272,855 6,886 1,279,741 1,279,740 1