HomeMy WebLinkAboutOrdinance 8690ORDINANCE NO c~~
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 FORT WORTH, TEXAS REPEALING
ORDINANCE NO 8160, PROVIDING A PENALTY CLAUSE AND PRO-
VIDING AN EFFECTIVE DATE
WHEREAS, on June 24, 1982, Lone Star Gas Company made appli-
cation for a rate increase in gross annual Residential and Commer-
cial gas sales revenues of $8,953,760 from its Fort Worth Distribu-
tion System consumers and,
WHEREAS, public hearings have been held on the applicant 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 hearings on said rate increase application have
now been concluded and closed and the City Council has duly consid-
ered all matters presented to it
NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS
SECTION 1
That the City Council of the City of Fort Worth, in the exer-
cises 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 Distribu-
tion System comprise an Invested Capital Rate Base of
$35,742,737 and an Adjusted Value Ba-se Rate of $59,986,855
b That Lone Star Gas Company is entitled to an 15 50~ rate
of return on its Invested Capital Rate Base and an 7 63~ 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 $4,576,997 on revenues from Residential and Commercial gas
sales of $51,308,144 to achieve the foregoing fair rates of
return
d That the rates hereinafter fixed re 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
Fort Worth should be and are hereby repealed effective December
1, 1982
SECTION 2
That for all gas consumed on and after December 1, 1982, and
billed on and after December 1, 1982, all persons, firms, corpora-
tions or associations of persons engaged in the business of furnish-
ing, distributing or delivering natural gas to residential and
commercial consumers in the City of Fort Worth are hereby authorized
to charge for their product and service in accordance with the
following schedules
A Residential & Commercial Rates
All Consumption @ 4 1223 per Mcf
Customer Charge
Residential $ 5 00/Month
For service periods less than 28 days, the customer charge is
$ 1786 times the number of days of service
Commercial $8 00/Month
For service periods less than 28 days, the customer charge is
$ 2857 times the number of days of service
B Special Provisions and Adjustments
1 The above rates are applicable to each residential and commer-
cial consumer per meter per month or for any part of a month for
which gas is used at the same location
2 Bills are due and payable when rendered and if not paid within
15 days of the date shown on the bill as the present meter reading
date or the for service through" date, subjects the customer to
immediate termination of gas service unless they have made other
payment arrangements with the Company
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3 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
Schedule Charge
S a m to 5 p m Monday through Friday $20 00
5 p m to S a m Monday through Friday 30 00
Saturdays, Sundays and Holidays 30 00
as a reconnect charge for each reconnection or reinaugura-
tion 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 con-
struction 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
4 A returned check handling charge of $5 is made for each check
returned to the Company for reasons of non-sufficient funds, account
closed, payment withheld, invalid signature or improper preparation
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 0251 determined in establishing the
above rates for the distribution system as the ratio of
adjusted purchased volumes divided by adjusted sales
volumes
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(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 $3 1847 per Mcf
(2) Correction of the estimated adjustment determined by Item 3B
(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 3B (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 3C (1) and Item 3C (2) above
shall be multiplied by a tax factor of 1 06135 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 3C (1), Item 3C (2), and Item 3C (3)
as follows
GCA = [Item 3C (1) + Item 3C (2)] X Item 3C (3)
GCA = [(1 0251) (Re - $3 1847) + C] X 1 06135
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D Tax Ad-iustment
The tax adjustment shall be an amount equivalent to the proportion-
ate part of any new tax, or increased tax, or any other governmental
imposition, rental, fee or charge (except state, county, city and
special district and valorem taxes and taxes on net income) levied,
assessed or imposed subsequent to January 1, 1982, upon or alloca-
ble to the Company's distribution operations, by any new or amended
law, ordinance or contract
SECTION 3
That any person, firm or corporation who refuses to comply with
the terms and provisions of this ordinance shall be deemed guilty of
a misdemeanor and, upon conviction, may be fined not to exceed Two
Hundred Dollars ($200), and each day's violation shall constitute a
separate offense
SECTION 4
That this ordinance shall take effect on and after the date of
its passage and publication as required by law
APPROVED AS TO FORM AND LEGALITY
City Attorney
ADOPTED /G?G~~~2%~~~jC./ ~~ / ~~~
EFFECTIVE
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~/!t~ RtEREREroc~ SeJBJEC'1' Lone Star Gas Coffipany Request Al-GE
rouaa®~~ For Increase in Local Rates
11/9/82 G~S475 i ~ ---~--
I
Background
~.
The Lome Star Gas Conepany (Lone Star) now operates ova rates which were
fiaced &y the City Council by Ordinance Ada 8160, adopted on August 26, 1980
The x.a~e which the company had been operating orn prior to that time was
faxed by the Railroad Commission of Texas iat its Docket GUD-1604 The
Commission's order took effect in September 1979, after an appeal by Lone
Star Gas Company from the rate ordinance adopted by the City of Fort Worth
On June 24 1982 Lone Star filed a request for authority to increase its
residential and commercial rates in Fort Worth and the 16 other cities
comprising its Fort Worth Distribution System The requested rates are
designed to produce additional reveaue.s of $8 954 million
On July 20, 1982 (M&C G-5365) the City Council approved a 120-day sus®
pension of the proposed rates pursuant to the Publie Utilities Regulatory
Act, Article 1446c, VAT S aa~d engaged Mci~orries and Associates of
Amarillo Texas to evaluate the propriety anal justification for the rate
request
The consultant has completed hi.s study az~d report. (Attachment A) and
recommends a smaller increase thaw that requested by the company The
consultant recommends that only $5 234 million additional revenue will
be required which is 58 percent of the company°s requested increase of
$8 954 million The consultant has agreed w~.th the proposed increase is
basic customer charges of $5 00 per month (residential) and $8 00 per month
(con~tnercial) and is in agreement kith the •reconnection charge of $20 00
as these charges arc found to be cQSt®based aa~d cost-justified The
difference in the rates proposed by the Company axed those recommended by
the consultant are shown below
Requested Ry
Lone Star Gas Coffipany
Recommended by
City and Consultant
Seasonal Rate per :Kfc (For residential and commercial customers)
Winter (7 months) $4 4178 $4 1709
Suaemer (5 months) $4 1675 $3 9209
Rquivalent hate with No Seasonal Differentl.al
$4 3692 $4 1223
The cox~sar.ltant made no specific recommenda~:ion on which of the two above
rate forms should be utilised but estisaates these either would produce
the r~equ3.~`~i~ $5 2~4 ~mYlliota iaxtrease 'fi're Cit~r staff has developed
charts to show the impact on the rate forms in typical
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GATE REFERENCE SUB.lECT: LOne Star Gas Company Request PAGE
1I/9/82 NG-547S For Increase is Local Rates -2--a+-~-~-
customers' bills (Attachmeot.B) The Coffipany requested the seasonal
rate with the winter rate $ 2S/Mcf higher tha~s the sa~mer, to promote
greater use of gas in the summertime The staff, however, recommends
its proposed rate to be used year-round, in order to relieve the
impact of the increase on customers in the winter The gas rate in
effect since the last increase is 1980 is a flat rate, year-round, and
its continued use is recommended,
Recommendation
It is recommended that
1) An ordinance be adopted. establisha.ng never rates Frith no seasonal
differential to be charged by Lone Star -Gas Company, as recommended
on the Mc.Mlorries and Associates Report, and,
2) The Lone Star Gas Company be invoiced to reimburse the City of Fort
for the funds expended to engage the consultant
Attachments
~ APPROVED BY
CITY COUNCIL
N O V 23 1982
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