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HomeMy Public PortalAboutOrdinance No. 889-01 01-09-2001 ORDINANCE NO. s89-ol • AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF RICHLAND HILLS, TARRANT COUNTY, TEXAS: PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; PROVIDING FOR A WEATHER NORMALIZATION CLAUSE; PROVIDING FOR THE RECOVERY OF ANY CURRENT 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 RICHLAND HILLS, TEXAS: SECTION 1. Effective immediately upon passage of this rate ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits of Richland Hills, Texas by TXU Gas Distribution, a division of TXU Gas Company, a Texas corporation, its successors and assigns, is hereby fixed and determined as set forth in Item A in the Attachment hereto which is incorporated herein. In regard to industrial customers in the City of Richland Hills, and in accordance with Section 104.003(b) of the Texas Utilities Code, contractual • industrial gas rates are considered to be just and reasonable. SECTION 2. The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $2.7535 per Mcf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the intercompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Richland Hills distribution system, according to Item B, in the Attachment hereto which is incorporated herein. The Industrial and Transportation rates shall be adjusted in accordance with their contract terms. SECTION 3. Residential and commercial rates shall also be subject to weather normalization adjustments according to Item C, in the Attachment hereto which is incorporated, herein. SECTION 4. The residential and commercial rates set forth above shall be adjusted upward or downward for changes in taxes and other governmental impositions, rental fees or charges according to Item D, in the Attachment hereto which is incorporated herein. Industrial rates shall be adjusted in accordance with their contract. 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 • Page 1 of 8 ORDINANCE N0. 889-01 PAGE 2 its reasonable rules and regulations. The charges set forth in Items E and F in the • Attachment hereto which is incorporated herein, are approved. Services 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 rates, Company is authorized to recover the current rate case expense through a surcharge designed for asix-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 and commercial customers. The Company will provide monthly status reports to the City to account for the collection of rate case expense. SECTION T. The rates set forth in this ordinance may be changed and amended by either 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 in the Company's office. SECTION 8. 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. SECTION 9. 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 on first reading this the Stn day of January , A. D., ~#)flt~ 2001. ATTEST: / - Cit ecretary Mayor City of Richland Hills, Texas ®a ~g~~j~'(~~ ~ ~ F~4v.. l :~'i s s M •.•R+a?~?~ttrb • Page 2 of 8 • STATE OF TEXAS § COUNTY OF TARRANT § I, Terri Willis ,City Secretary of the City of Richland Hills, Tarrant County, Texas, hereby certify that the above and foregoing is a true and correct copy of an ordinance passed and approved by the City Council of the City of Richland Hills Zoos at a regular session held on the 9th day of January , 2©00, as it appears of record in the Minutes of said City CounciE ~ir~~ak-------,.~age_________ • ~ WITNESS MY HAND AND SEAL OF SAID CITY, this the ~ day of _,A. D. 200. City Secretary City of Richland Hills, Texas ATTACHMENT TO ORDINANCE NO. ss9-oi Page 3 of 8 CITY OF RICHLAND HILLS, TEXAS • TXU GAS DISTRIBUTION TARIFFS & SCHEDULES ITEM A. RESIDENTIAL AND COMMERCIAL RATES Subject to applicable adjustments, 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 $ 8.0000 All Consumption @ 3.8301 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 @ 4.1150 Per Mcf Next 30 Mcf @ 3.8150 Per Mcf Over 50 Mcf @ 3.6650 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. ITEM B. GAS COST ADJUSTMENT Each residential and commercial monthly bill at the above rates in Item A shall be adjusted for gas cost as follows: • Paqe 4 0~ 8 (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} 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 (b) The base city gate rate of $2.7535 per Mcf, multiplied by (c} A volume factor of 1.0216 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)j GCA =[(1.0216) (Re - $2.7535) + C] ITEM C. Weather Normalization Adjustment: 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, 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. Page 5 of 8 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 Airport 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 = 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 May billing months AHL = 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. 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, 1999, upon or allocated • to the Company's distribution operations, by any new or amended law, Page o of 8 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 ini#ial 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; or (c) For any reason deemed necessary for company operations. (2) Read For Change Charge A read for change charge of X12.00 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 A returned check handling charge of $16.25 is made for each check returned to the Company for any reason. (4) Delinquent Notification Charge A charge of $4.75 shall be made for each trip by a Company • Page 7 of 8 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 8 of 8