HomeMy Public PortalAboutOrdinance No. 638-91 06-10-1991
• ORDINANCE NO. 6 3 8
AN ORDINANCE REGULATING THE RATES AND CHARGES
OF ALL PERSONS, FIRMS, CORPORATIONS OR
ASSOCIATIONS OF PERSONS ENGAGED IN THE BUSINESS
OF FURNISHING, DISTRIBUTING, OR DELIVERING
NATURAL GAS TO RESIDENTIAL AND COMMERCIAL
CUSTOMERS IN THE CITY OF RICHLAND HILLS, TEXAS;
PROVIDING A SAVING CLAUSE; PROVIDING A PENALTY
CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, on February 6, 1991, Lone Star Gas Company made application for
an increase in Residential and Commercial gas rates designed to produce additional
revenues of $3,715,813.00 from its Fort Worth Distribution System consumers; and
WHEREAS, a public hearing has been held on this application of Lone Star Gas
Company, at which all interested parties were given a full opportunity to be heard on
the requested rate increase; and
WHEREAS, the hearing on said rate increase application has now been concluded
and closed and the City Council has duly considered all matters presented to it;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
• OF RICHLAND HILLS, TEXAS:
I.
That the City Council of the City of Richland Hills, in the exercise of its sound
legislative discretion, finds the following facts to be established:
A. That Lone Star Gas Company's distribution properties used and useful in
serving the consumers in the Fort Worth Distribution System comprise an
Invested Capital Rate Base of $47,113,562.00 and an Adjusted Value Base
Rate of $73,422,435.00.
B. That Lone Star Gas Company is entitled to a 12.5% rate of return on
equity, a 10.71% rate of return on its Invested Capital and a 6.87% rate of
return on its Adjusted Value Rate Base; and that said rates of return are
fair, reasonable and just under the facts and circumstances presented.
C. That Lone Star Gas Company requires a net operating income of
$5,045,862.00 on revenues from residential and commercial gas sales of
$92,619,269.00 to achieve the foregoing fair rates of return.
•
ORDINANCE NO. 6 3 8 Page 1
• D. That the rates hereinafter fixed are determined to be fair, just and
reasonable; and that all previously adopted rates and charges for gas
service to residential customers in the City of Richland Hills should be and
are hereby repealed effective July 1, 1991.
II.
That for all gas consumed on and after July 1, 1991, and billed on and after July
1, 1991, all persons, firms, corporations or associations of persons engaged in the
business of furnishing, distributing or delivering natural gas to residential and
commercial consumers in the City of Richland Hills are hereby authorized to charge
for their product and service in accordance with the following schedules:
A. Residential and Commercial 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.
1. Residential:
Customer Charge $7.00
All Consumption @ $5.2020 per Mcf
An off-peak sales discount of $0.25 per Mcf will apply to
• residential customers' volume purchased in excess of 8
Mcf for each of the billing months May through October.
If the service period is less than 28 days in a month, the
customer charge is $0.25 times the number of days'
service.
2. Commercial:
Customer Charge $12.0000
First 20 Mcf @ 5.4478 per Mcf
Next 30 Mcf @ 5.1478 per Mcf
Over 50 Mcf @ 4.9978 per Mcf
If the service period is less than 28 days in a month, the
customer charge is $0.4286 times the number of days'
service.
B. Rate Schedule for Schools
The Rate Schedule for Public Free Schools is withdrawn from
the Fort Worth Distribution System. Service will be provided
to public schools under the Commercial Rate established
herein. Upon expiration of the current contract year of the
Commercial Public School Rate contracts now in effect, the
• Commercial Public School Rate will no longer be available.
ORDINANCE NO. 6 3 8 Page 2
• C. 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 residential and commercial sales
shall be estimated to the nearest $0.0001 per Mcf based
upon:
a. A volume factor of 1.0312 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 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").
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 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.
3. The adjustment determined by Item B 1. and Item B 2.
above shall be multiplied by a tax factor of 1.06226 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 =[(1.0312) (Re - $4.0200 + C] x 1.06226
ORDINANCE NO. 6 3 8 Page 3
• D. Weather Normalization Adjustment
Effective with bills rendered during the October, 1991 through
April, 1992, billing months and annually thereafter for the
October through April billing months, the above residential and
commercial consumption rates for gas service will 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 volume consumed by 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 D/FW weather station. The
adjustment to be made for each billing cycle will be calculated
according to the following formula:
NDD-ADD
WNA = x M
ADD
Where: WNA = Weather normalization adjustment
NDD = Normal heating degree days during the period covered by the
. billing cycle
ADD = Actual heating degree days during the period covered by the
billing cycle
M = Weighted average margin per Mcf included in the commodity
portion of the rates effective during the October through April
billing months
The weather normalization adjustment will be calculated to the nearest $0.0001 per
Mcf.
E. Tax Adjustment
The tax adjustment shall be an amount equivalent to the
proportionate part of any new tax, or increased or decreased
tax, or 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 July 1, 1991, upon or
allocable to the Company's distribution operations, by any new
or amended law, ordinance or contract.
F. Rate Case Expense
It is the intention of Lone Star Gas Company to recover the
current and any unrecovered prior rate case expense through a
surcharge designed for asix-month nominal recovery period.
•
ORDINANCE NO. H 3 R Page 4
• 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 and commercial customers.
When a surcharge is applicable, monthly status reports will be
provided to account for the collections.
G. Special Provisions and Adjustments
1. Restoration of service is subject to the following
schedule of reconnect charges:
In addition to the charges and rates set out above, the
Company shall charge and collect the sum of:
chedul har e
8:00 a. m. to 5:00 p. m.,
Monday through Friday $25.00
Night, week-end and holiday $40.00
as a reconnect charge for each reconnection or
reinauguration of gas service, 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
construction or for display purposes.
b. For the first occupant of the premises.
c. Whenever gas service has been temporarily
interrupted because of system outage, service work
or appliance installation done by Company; or
d. For any reason deemed necessary for Company
operations.
2. A returned check handling charge of $7.50 will be made
for each check returned to the Company for reasons of
non-sufficient funds, account closed, payment withheld,
invalid signature or improper preparation.
3. A charge of $7.00 shall be made whenever it is necessary
to send a Company employee to a customer's premises to
collect amounts owed for gas service.
•
ORDINANCE NO. 6 3 8 Page 5
• III.
For the purpose of assuring rates to be charged by Lone Star Gas Company
which are just and reasonable to the consumers of natural gas within the corporate
limits of the City of Richland Hills as well as Company, City reserves unto itself the
right and privilege at any time to increase, decrease, alter, change or amend this
ordinance or the rates herein established and provided for, or to enact any ordinance
or adopt any such rates which would effectuate such purpose. In so doing, City
further reserves unto itself the right and privilege of exercising any power granted it
under statutory law, administrative rule or regulations or otherwise.
IV.
Lone Star Gas Company shall pay all reasonable rate case expenses to the City
of Fort Worth, Texas, not to exceed $26,000.00
V.
Severability Clause. That it is hereby declared to be the intention of the City
Council that the sections, paragraphs, sentences, clauses and phrases of this
ordinance are severable, and if any phrase, clause, sentence, paragraph or section of
this ordinance shall be declared invalid or unconstitutional by the valid judgment or
decree of any court of competent jurisdiction, such invalidity or unconstitutionality
shall not affect any of the remaining phrases, clauses, sentences, paragraphs and
sections of this ordinance, since the same would have been enacted by the City
Council without the incorporation in this ordinance of any such invalid or
• unconstitutional phrase, clause, sentence, paragraph or section.
VI.
All ordinances or parts of ordinances in conflict with this ordinance are hereby
repealed. PROVIDED, however, that nothing herein shall alter or repeal the
provisions of Ordinance No. 550, the Lone Star Gas Franchise Ordinance, which
ordinance is saved from repeal and continued in effect hereby.
VII.
Penalty Clause. Any person violating or failing to comply with the provisions of
this ordinance, as listed above, shall be deemed guilty of a misdemeanor and, upon
conviction, may be fined not to exceed Two Hundred ($200.00) Dollars, and each
day's violation shall constitute a separate offense.
VIII.
Effective Date. This ordinance shall be in full force and effect from and after
its passage and publication as provided by the Richland Hills City Charter and the
laws of the State of Texas.
•
ORDINANCE NO. 6 3 8 .Page 6
• PRESENTED, GIVEN FIRST READING AND APPROVED at a regular meeting of
the Richland Hills City Council on the 10th day of June, 1991, by a vote of 4
ayes, 0 nays, and 1 abstentions.
APPRO D
ames R. ruitt, Mayor
ATTEST:
Pauline Kempe, City Secretary
APPROVED AS TO FORM:
F'~ ,
/
Paul F. Wieneskie, City Attorney
• 0246a/dd/060691
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ORDINANCE NO. 6 3 8 Page 7