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HomeMy WebLinkAboutOrdinance 11143ORDINANCE NO. AN ORDINANCE AMENDING ORDINANCE N0. 10849 BY DELETING SECTION 2D OF THE ORDINANCE AND ADDING A NEW SECTION 2D TO ORDINANCE NO. 10849. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: Section 1. Effective upon the date of final passage and approval of this ordinance, Ordinance No. 10849 is amended. Section 2. Section 2D of Ordinance No. 10849 is deleted. Section 3. A new Section 2D as set forth below is added to Ordinance No. 10849. Section 2D Weather Normalization Adjustment Effective with bills rendered during the October 1992 through May 1993 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: NDD - ADD WNA = ADD x M x AHL 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 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 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. Section 4. 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 this the<f day of 1992. ' ATTEST: ~~~~J Secretary Ma r City o Fort Worth, Texas APPROVED AS TO FORM AND I.,EGALIT% ~~ City Attorney 1~ Date: 2 City of Fort Worth, Texas Mayor and Council ~.ommunicat~ior~ T 08/04/92 REFEREN E NUMBER 6-9765 L NAME 12LONEST PA E 1 of 1 SUBJECT REVISION OF LONE STAR GAS COMPANY'S WEATHER NORMALIZATION ADJUSTMENT RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance amending Ordinance No. 10849 to revise the calculation of the Weather Normalization Adjustment. BACKGROUND: Lone Star Gas Company rates in effect for Fort Worth were approved by City Council in M&C G-9158 and were established by Ordinance No. 10849 adopted May 28, 1991. This ordinance contains an innovative Weather Normalization Adjustment (WNA) clause designed to stabilize the level of revenue approved by the City Council that would be produced under conditions of normal weather. The WNA has been in effect for one heating season, and it has worked as designed. After the first year's experience, however, Lone Star Gas Company and City staff feel that the WNA can be refined. The current WNA is applicable to customers' bills rendered in the months of October through April. This period does not include all of the heating degree days for all of the customers. Uniform application of the WNA through the billing cycles is accomplished by extending the period through the month of May. The current WNA is applied to all commercial and residential gas used during the applicable period. The revised formula contains a provision to exempt non-weather- related gas from the WNA. The calculation of the WNA is particularly sensitive to actual temperatures at the beginning and end of the heating season. The revision limits the heating degree days used in the calculation to be within a range of ± 50% of the normal heating degree Gays. These revisions will result in a fair and uniform application of the Weather Normalization Adjustment. FISCAL INFORMATION/CERTIFICATION: This Council action will not require the expenditure of City funds. ~ Su e or C ty Manager's FUND ACCOUNT CENTER ANOUNT CITY SECRETARY Office by: to ApPROV~O Charles Boswell 8511 ^!'~"'~ ~VCis~~i~ l Or g nat ng Department Nea v ~-~~ 4 X92 Wade Adkins 7623 from ~f~Q~t@~ (~!'(~I(18f1Cv ~0,~~~ ~ ~ ~ For Additional Information ` '`" C.!T ®~ ~t ~~ Contact : Cily o4 F~=! lracth, Yew Wade Adkins 7623 Printed on recycled paper