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Home My Public Portal AboutOrdinance No. 763-95 09-26-1995 • ORDINANCE NO. 7 6 3- 9 5 AN ORDINANCE AMENDING SECTION 13 "GAS RATES" OF CHAPTER 11 "UTILITIES" OF THE CODE OF ORDINANCES, CITY OF RICHLAND HILLS, TEXAS; REGULATING THE RATES AND CHARGES OF ALL PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS ENGAGED IN THE BUSINESS OF FURNISHING, DISTRIBUTING OR DELIVERING NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF RICHLAND HILLS, TEXAS; CHANGING THE RATES FORMERLY CONTAINED IN SECTION 13 OF CHAPTER 11 OF THE RICHLAND HILLS CODE OF ORDINANCES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Lone Star Gas Company, a division of Ensearch Corporation, heretofore on April 19, 1995, filed with the City Council its statement of intent, together with its rate-filing package, proposing to change its rate schedules and service regulations within the corporate limits of this municipality, to be effective on May 25, 1995; and WHEREAS, Lone Star Gas Company simultaneously, on April 19, 1995, filed a • virtually identical statement of intent with other cities in the Fort Worth distribution system; and WHEREAS, the City of Fort Worth, being a city within said Fort Worth distribution system has conducted a rate study on the proposed new rate schedules and service regulations for Lone Star Gas Company; and WHEREAS, said rate study has now been completed and the results of same have been furnished to the City Council of the City of Richland Hills, Texas; and WHEREAS, the City Council of the City of Richland Hills, Texas, after having reviewed the rate study conducted by the City of Fort Worth, and after conducting a public hearing on said rate increase application, and having considered all matters presented in said public hearing now finds and determines that the following rates are just and reasonable to the consumers of natural gas within the corporate limits of the City of Richland Hills as well as to the said Lone Star Gas Company. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF RICHLAND HILLS, TEXAS: I. That Section 13 "GAS RATES" of Chapter 11 "UTILITIES" of the Code of Ordinances, City of Richland Hills, Texas, as amended, be hereby amended to hereafter be and read as follows: • ORDINANCE NO. PAGE 1 • SECTION 13: GAS RATES For all gas consumed on and after September 15, 1995, and billed on and after September 15, 1995, 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 $8.00 All consumption @ $5.3868 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 twenty-eight (28) days in a month, the customer charge is $0.2857 times the number of days' service. (2) Commercial: Customer charge $14.00 First 20 Mcf @ 5.5750 per Mcf Next 30 Mcf @ 5.2750 per Mcf Over 50 Mcf @ 5.1250 per Mcf If the service period is less than twenty-eight (28) days in a month, the customer charge is $0.50 times the number of days' service. B. 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 1.0301 determined in establishing the above rates for the distribution system as the ratio of adjusted • purchased volumes divided by adjusted sales volumes. ORDINANCE NO. 7 6 3- 9 5 PAGE 2 (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"). (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 1.06146 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 =[(1.0301) (Re - $4.0200) + C] x 1.06146 C. WEATHER NORMALIZATION ADJUSTMENT Effective with bills rendered during the October, 1995 through May 1996, billing months, and annually thereafter for the October through May 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 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 D/FW weather station. The adjustment to be made for each billing cycle will be calculated according to the following formula: ORDINANCE NO. 7 6 3- 9 5 PAGE 3 • NDD-ADD WNA = x M x AHL 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. AHL = Actual heating load per customer. This 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 billed to the customer. The heating load to which the weather normalization adjustment is to be applied for 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 fifty percent (50%) limitation factor based on temperatures being fifty percent (50%) warmer or colder than normal. The weather normalization adjustment will be calculated to the nearest $.0001 per Mcf. D. 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, 1994, upon or allocable to the company's distribution operations, by any new or amended law, ordinance or contract. E. 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 a six (6) month nominal recovery period. • The surcharge per Mcf will be calculated by dividing the rate case expense to be recovered by one-half (1/2) 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. ORDINANCE NO. 7 6 3- 9 5 PAGE 4 r F. SPECIAL PROVISIONS AND ADJUSTMENTS (1) Provision of service is subject to the following schedule of charges: In addition to the charges and rates set out above, the company shall charge and collect the sum of: Schedule Charee 8:00 a.m. to 5:00 p.m., $27.50 Monday through Friday Night, week-end and holiday $41.25 as a connection charge for initial inauguration of service, for each inauguration of service when the billable party has changed and 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) Whenever gas service has been temporarily interrupted because • of system outage, service work or appliance installation done by the company; or (c) For any reason deemed necessary for company operations. (2) A returned check handling charge of thirteen dollars and seventy five cents ($13.75) will be made for each check returned to the company for any reason. (3) A charge of nine dollars and fifty cents ($9.50) shall be made whenever it is necessary to send a company employee to a customer's premises to collect amounts owed for gas service. II. 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. • ORDINANCE NO. 7 6 3- 9 5 PAGE 5 • III. 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. IV. Saving Clause. That Chapter 11 of the Code of Ordinances, City of Richland Hills, Texas, as amended, shall remain in full force and effect, save and except as amended by this ordinance. V. 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. PRESENTED, GIVEN FIRST READING AND APPROVED at a regular meeting of the Richland Hills City Council on the 26th day of September , 1995, by a vote of 5 ayes, 0 nays, and ~ abstentions. APPROVED: C. F. Kelley, Mayor ATTEST: ~ ~ C.,L ~ ~ ~i- i1Li5, City ecretary APPROVED AS TO FORM AND LEGALITY: Pa, F. Wi neskie, ity Attorney mlib8361bh/090195 ORDINANCE NO. ~ 6 3- 9 5 PAGE 6