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HomeMy WebLinkAbout1993-2016 - Ordinance - 06/24/1993ORDINANCE NO 2016 AN ORDINANCE FIXING AND DETERMINING A GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF COLLEGE STATION, BRAZOS COUNTY, TEXAS; PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; PROVIDING FOR A WEATHER NORMALIZATION ADJUSTMENT; PROVIDING FOR THE RECOVERY OF ANY CURRENT AND UNRECOVERED PRIOR RATE CASE EXPENSE; PROVIDING FOR A SCHEDULE OF SERVICE CHARGES, AND PROVIDING FOR A MAIN LINE EXTENSION RATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS; SECTION 1. Subject to the following provisos, effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city I~mits of College Station, Texas by Lone Star Gas Company, a division of ENSERCH CORPORATION, a Texas Corporation, ~ts successors and assigns, is hereby fixed and determined as set forth in Item A, in the Attachment hereto which ~s incorporated herein PROVISO NO. (1)' If this ordinance ~s finally passed and approved before the effective date stated in the Statement of Intent the new rates shall be effective w~th gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance for the good cause of reducing regulatory lag PROVISO NO. (2). If th~s ordinance is finally passed and approved after a penod of suspension, the new rates shall be billable immediately ~n order to reduce regulatory lag. This provision ~s an exerc4se of the regulatory authority's discretion to establish the effective date of rates at anytime after jurisdiction attaches, and ~ts authority pursuant to State law to establish rates for any period of suspension SECTION 2. The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4 0200 per Mcf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcr) of natural gas for changes ~n the intercompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having junsd~ct~on for gas delivered to the College Station distribution system, according to Item B, in the Attachment hereto which ~s ~ncerporated herein. SECTION 3. Company shall also receIve tax adjustments accord,ng to Item C, ~n the Attachment hereto which is incorporated, herein. Page 2 SECTION 4 Upon approval by the City Council, wh,ch approval shall be given upon adoption of an amendment to the existing franchise, Company shall also apply a Weather Normalization Adjustment according to Item D, ,n the Attachment hereto which is incorporated herein SECTION 5 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 The charges set forth in Items E and F ~n the attachment hereto which is ,ncorporated herein, are approved. Sew,cas for which no charge is set out may be performed and charged for by Company at a level established by the normal forces of competition. SECTION 6 In addition to the aforesaid rate, Company is authonzed to recover the current and any unrecovered prior rate case expense through a surcharge designed for a twelve-month nominal recovery period. The surcharge per Mcr will be calculated by dividing the rate case expense to be recovered by the adjusted annual sales volume to residential and commercial customers. The Company will provide monthly status reports to account for the collection. SECTION 7 The rates set forth in this ordinance may be changed and amended by e~ther the City or Company in the 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 ,n the Company's office. SECTION 8. It is hereby found and determ,ned that said meeting at which th,s ordinance was passed was open to the pubhc, as requ,red by Texas law, and that advance public notice of the time, place and purpose of said meet, ng was given PASSED AND APPROVED on th,s 24'ch day of June , A. D, 1993. ATTEST: Cc~d.e Hoo~s, C~.~y Sec=e~ F=ed S~-own~ ,'fa,~o~' ~ ITEM A ITEM B. A'I-rACHMENT TO ORDINANCE NO;~Ol.._6 CITY OF COLLEGE STATION, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES RATES The following rates are the maximum applicable to residential and commercial 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 4.3378 Per Mcr If the service period is less than 28 days ~n a month the customer charge is $0.2857 times the number of days service Commercial: Customer Charge First 20 Mcf Next 30 Mcf Over 50 Mcr $14.0000 5.0266 Per Mci' 4 7266 Par Mcr 4 5766 Par Mcr If the serv~co period is less than 28 days ~n a month the customer charge ~s $0.5000 times the number of days service. B~lls are due and payable when rendered and must be paid within ten days from monthly billing date. Residential Off-Peak Sales Discount: An off-peak sales discount of $.25 per Mcr will apply to residential customers volume purchased in excess of 8 Mcf for each of the billing months May through October. GAS COST ADJUSTMENT Each 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 resident,al and commercial sales shall be estimated to the nearest $0.0001 per Mcr based upon' ITEM C. (a) A volume factor of 1.0024 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes (b) The city gas rate estimated to be applicable to volumes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcr (shown below as "Re") (c) The base city gate rate of $4.0200 per Mcf. (2) Correction of the estimated adJustment determined by Item B (1) above shall be included as part of the adjustment for the second following billing month The correcting factor (shown below as "C") shall be expressed to the nearest $0.0001 per Mcr 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) Distnbuflon system residential and commercial sales Mcf recorded on the Company's books during the prior year for the month that the corract~on is included as part of the adjustment. (3) The adjustment determined by Item B (1) and Item B (2) above shall be multiphed by a tax factor of 1.04414 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 Item B (1), Item B (2) and Item B (3) as follows: GCA = [Item B (1) + Item B (2)] X Item B (3) GCA = [(1 0024) (Re - $4.0200) + C]X 1.04414 TAX ADJUSTMENT The tax adjustment shall be 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 ~mposiflon, rental fee or charge (except state, county, c~ty and special d~stdct ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to July 1, 1992 upon or allocable to the Company's distribution operations, by any new or amended ITEM D law, ordinance or contract. WEATHER NORMALIZATION ADJUSTMENT Effective with bills rendered during the October 1993 through May 1994 billing months and annually thereafter for the October through May billing months, the above residential and commercial consumption rates for gas .service shall be subject to a weather normalization adjustment to reflect the impact of monthly vanations in the actual number of heating degree days from the normal level of heating degree days during the preceding bill,rig months of October through May. The weather normalization adjustment will be implemented on a per Mcr basis. The adjustment will be determined separately for residential and commercial customers based on heating degree data recorded by the Austin, Texas weather station The adJustment to be made for each billing cycle will be calculated according to the following formula' WNA-- NDD - ADD X M X AHL ADD Where. WNA = NDD = ADD = M: AHL = Weather Normalization Adjustment Normal heating degree days dudng the period covered by the billing cycle Actual heating degree days dunng the pedod covered by the billing cycle Weighted average margin per Mcr 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 customers is determined by subtracting the residential class base load from the total volume being b~lled to the customer. The heating load to which the weather normalization adjustment is to be applied for commerc4al 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. ITEM E SCHEDULE OF SERVICE CHARGES ITEM F (1) Inauguration of Sen/ica Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of. Schedule Chame 8 AM to 5 PM Monday through Friday $27.50 5 PM to 8 AM Monday threugh Friday $41.25 Saturdays, Sundays and Holidays $41 25 For each inauguration or reinauguration of gas sen/ica, where service has been discontinued at the same premises for any reason, with the following exceptions. (a) For a builder who uses gas temporarily during the construction or for display purposes (b) For the first occupant of the premises. (c) Whenever gas sen/ica has been temporarily interrupted because of system outage, sen/ica work or appliance installation done by Company' or (d) For any reason deemed necassary for Company operations (2) Returned Check Charges A returned check handling charge of $13.75 is made for each check returned to the Company for reasons of non-sufficient funds, account dosed, payment withheld, invalid signature, or impreper preparation. (3) Collection Charge A charge of $9 50 shall be made for each instance when it is necassary for a company employee to go to a customer's residenca or placa of business in order to collect amounts owed the Company for gas service previously rendered. This charge shall not apply if sen/ica is terminated at the time of the collection action This charge shall apply to only one trip on the same amount owed. MAIN LINE EXTENSION RATE The charge for extending mains beyond the free limit established by Lone Star Gas Company, or any free limit established by franchise, for bona fide residential customer shall be the lesser of. (a) the system-wide average cost of construction, including all overheads, for the prior fiscal year or (b) the adJusted actual cost as determined by applying the latest Handy- Whitman Index to the 1975 actual base cost of $2.94. A bona fide residentIal customer uses gas for heating and water heating, or the equivalent load thereof, et a mInimum Residential customers other than bona fide residential customers shall pay actual cost for main line extensions beyond the free limit. The Company shall file the calculation of such cha~ge with the city es soon as sufficient data is available each fiscal year Extension to commercial and ~ndustnal customers shall be based on actual cost per foot.