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HomeMy WebLinkAboutOrdinance 7652 ORDINANCE NO. -1 AN ORDINANCE AUTHORIZING A NOVEMBER GAS COST ADJUSTMENT OF 35 .88 CENTS PER MCF AND PROVIDING FOR AN EFFECTIVE DATE . WHEREAS , under the provisions of Ordinance No. 7401, the City Council may, in its sound discretion, take action to "suspend, modify or defer" all or a portion of proposed monthly gas cost adjustments as reported and prior to their effective date, all as specified in said Ordinance; and WHEREAS , the proposed Gas Cost Adjustment for November 1977 as reported by Lone Star Gas Company has been computed in accordance with the provisions of the Railroad Commission ' s Order in GUD No. 683 which is the subject of litigation filed by the City of Fort Worth; and WHEREAS , computation of the Gas Cost Adjustment eliminating all charges and computations which are being disputed in said litigation results in a Gas Cost Adjustment for November in the amount of 35 .88 cents per Mcf; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS : SECTION 1. That under the authority of Ordinance No. 7401, the Gas Cost Adjustment for November 1977 is set at 35 .88 cents per Mcf. SECTION 2 . That this Ordinance shall take effect on and after November 1, 1977. APPROVED AS TO FORM AND LEGALITY: e ( � City Attorney Adopted : �� � FILE) NNE City ®f' Fort Worth, Texas BAILIFF Mayor LLq/ and d C®IL�iV0 c l Communication GRAHAM AUGHINBAL G&TE REFERENCE SUBJECT: Gas Cost Adjustment - PAGE NUMBER 10/25/77 G-3613 November, 1977 1 of 1 In accordance with the provisions of Ordinance No. 7401, Lone Star Gas Company has notified the City of Fort Worth by letter of October 18, 1977, of its September gas costs and the proposed GCA for November 1977. The out-of-period gas costs have been eliminated in calculating the weighted average cost, pend- ing resolution of the various protests of the City of Fort Worth against in- clusion of such costs. The GCA proposed by Lone Star Gas Company amounts to a pass-on of $0.4588 per Mcf to become effective with the billing after November 1, 1977. The present gas cost adjustment, as authorized by Ordinance No. 7633, adopted by the City Council on September 27, 1977, is 32.28 per Mcf. This figure was arrived at by calculations utilizing the old base cost of gas (72.29G per Mcf) and the old Gate Rate ($100399 per Mcf) effective under GUD-588 prior to the Railroad Commission's order in GUD 683 which is being litigated. In the same manner as utilized last month the staff has recalculated the pro- posed pass-through for November with a resulting adjustment of $0.3588 per Mcf instead of the proposed Lone Star Gas $.4588 per Mcf. This amounts to an increase of 3.6o, per Mcf over the October billing. Informal Report No. 3010, "Lone Star Gas Earnings", advised the City Council of the progress being made by the City's consultant to perform the analysis and report on the financial status of Lone Star Gas Fort Worth Distribution System for 12 months ending June 30, 1977. This study is now being completed and a draft report is being prepared for transmittal to the Council in November, before Council's action will be rewired on the October gas-cost statement. A recommendation will be made at that time concerning a more permanent solution to the GCA matter, Recommendation It is recommended that the City Council approve the $.3588 per Mcf pass-through for the month of November for the same reasons as cited in the inter-office communications attached to last month's advice to the Council (Informal Report No. 3001) , An ordinance to effect this recommendation has been prepared for adoption if the City Council concurs. MM:ms Attachments SUBMITTED BY: DISPOSITIO BY COUNCIL: PROCESSED BY APPROVED ❑ OTHER (DESCRIBE) ADOPTED ORDINANCE N0. -7 � 6 v CITY SECRETARY DATE CITY MANAGER ti s i 111 i .a•a� - .sig• �'.i a q^ r-_Al, IN , Texas CORN October 25, 1977 Mayor--Partner, Council Members , Ladies and Gentlemen i My name is B-arbgra Hov,rell .and I live at 2109 Alston. I am speaking today for ACORN :members. in Fort Worth. .ACORN is recommending that you reject the Gas Cost Adjustment polidy. of Lone Star Gas when...the ,report is submitted to you this upcoming month. This was the recommendation of . the City' s hired utility rate. consultant,. BIll McMorries , in June of 1976, a.s some of you may remelmber. And it is the feeling of the people as well. Some of the many reasons are ; . the lack of incentives it gives the gas company. They have no reason to keep their wholesale costs doyen., -if they can just ,''pass them along" . Another important reason is that. these monthly pass alongs are nickeling and dimeing the, consumers to death. And we have no , hearings to partidpate in. A pass -al6lzg charge makes the. rates appear even more suspicious as well. But mainly, it drives up the costs of the bills because the gas company has no incentive to go out and look for cheaper sources when they know they can pass along their co*ts because they are, after all, the only gas company in town. Texas Association of Community Organizations for Reform Now 3814 Ross, Room 201, Dallas 75204(2141823-4580 1322 Hemphill,Fort Worth 76104(817)924.1401 2405 San Jacinto, Room 212, Houston 70113(713)668.0945 ACORN feels it..,is the .continuing obligation of this Council to weigh the Ampapt of every increase --,. "be it nickel ori dollars® on the Fort Worth people.,... The dra,ma,tic increases in costs have hit hardest the:,poor, .the, .elderly, the handicapped, and those on fi)aed incomes. Their incomes have not risen in proportion to the costs of energy. For that matter neither has the average person° s. who is struggling ..to ,pay ;thes,e bills , as well. It may seem easy vote in. these nickel pass along costs , particularly ,when :you haven! t, stoked your furnace for winter yet, but remember, gas bills are too high for too many right now. Maybe not' for";you,._ but:. for the. people you represent, they are too high right now. ? When you vote on-these pass. long costs, vote them down. and when`you vote on this .:Gas Cost Adjustment policy, remember the people, remember.. and. _vote. ,:t� disallow it. Thank you.