HomeMy WebLinkAboutOrdinance 8160t
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ORDINANCE
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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 7734; PROVIDING A PENALTY CLAUSE; AND PRO-
VIDING AN EFFECTIVE DATE.
WHEREAS, on April 23, 1980, Lone Star Gas Company made application for a
rate increase in gross annual Residential and Commercial gas sales revenues of
$4,945,,934 from its Fort Worth Distribution System consumers; and,
WHEREAS, public hearings have been held on the application 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 con-
cluded and closed and the City 'Council has duly considered all matters presented to it;
NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
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That the City Council of the City of Fort Worth, Texas, in the exercies 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 Distribution System comprise an
Invested Capital Rate Base of $30,354,765 and an Adjusted Value Base Rate of
$41,111,424.
b. That Lone Star Gas Company is entitled to an 11 78% rate of return
on its Invested Capital Rate Base and an 8.69% 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;
F.
Standard working hours defined as 8 a.m to 5 p.m. Monday through Friday except
holidays.
All new company sold grills serviced free of charge for 90 days, during standard
working hours.
Gas Light Service
Service
Clean and replace mantles
Painting (black and white and/or replacing
glass panes
All new company sold gas lights serviced free
of charge for 90 days, during standard working
hours.
Air Conditioning Service
Schedule
Charge
$5.00
$4 00
Hourly Charge
Any hour Sunday through Saturday and Holidays $20.00
Time in excess of one hour prorated in 15 minute increments, as follows:
Increments All Hours
15 minutes $ 5.00
30 minutes $10 00
45 minutes $15 00
60 minutes $20.00
All new company-sold air conditioning units serviced free of charge for one year
from date of installation.
No additional charge for second employee (helper).
Labor charges in excess of factory allowances for warranty replacement and
repair will be passed on to the customer
3. Charges for replacing Yard Lines
Item or Service
Basic service charge for all replacement
work
Prebent Riser with Support Post
Noncorrodible Prebent Riser
Stopcock
Ditch, replace ly4 inch (or smaller) pipe,
and obtain city inspection
Charge
$40.00
$20.00
$15 00
$ 4.95
$ 2.00 per foot
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c. That Lone Star Gas Company requires a net operating income of
$3,575,791 on revenues from Residential and Commercial gas sales of
$52,990,468 to achieve the foregoing fair rates of return.
d. That the rates hereinafter fixed are determined to be fair, just and
reasonable; and that all previously adopted rates and charges for gas service to
residential and commercial customers in the City of Fort Worth should be and
are hereby repealed effective September 1, 1980
SECTION 2.
That for all gas consumed on and after September 1, 1980, and billed on and after
September 1, 1980, 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 Fort Worth are hereby authorized to charge for
their product and service in accordance with the following schedules:
A.
Residential and Commercial
All Consumption @ $2.64636 per Mcf
Customer Charge:
Residential $3.75
Commercial $7 00
B.
Special Provisions and Adjustments
1 The above rates are applicable to each residential and commercial con-
sumer 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
Restoration of service is subject to the Company's reasonable regulations and
charges as authorized in paragraph B(5) below to include a $20.00 Reconnect
Charge.
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3. The amount of each monthly bill computed at the above rates shall be
subject to the following adjustments:
(a) Gas Cost Adjustment
Each monthly bill at the above rate shall be adjusted for gas cost as
follows:
(i) The city gate rate increase or decrease applicable to current
billing month residential and commercial sales shall be es-
timated to the nearest $0.0001 per Mcf based upon:
a. A volume factor of 1 0442 determined for the distri-
bution system as the ratio of Mcf purchased divided by the Mcf
sold for the 12 month period ended June 30, 1979
b. The city gate rate estimated to be applicable to
volumes purchased during the current calendar month, ex-
pressed to the nearest $0 0001 per Mcf (shown below as "Re").
c. The base city gate rate of $2.0279 per Mcf
(ii) Correction of the estimated adjustment determined by (3) (a) (i)
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 (3) (a) (i)
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.
(iii) The adjustment determined by (3) (a) (i) and (3) (a) (ii) 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 (3) (a) (i), (3) (a) (ii) and (3) (a) (iii) as follows:
GCA = (3) (a) (i), + (3) (a) (ii) X (3) (a) (iii)
GCA = (1 0442) (Re - $2.0279) + C X 1 06146
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4. Tax Adjustment
The tax adjustment shall be an amount equivalent to the proportionate part
of any new tax, or increased tax, or 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 January 1,
1980, upon or allocable to the Company's distribution operations, by any new or
amended law, ordinance or contract.
5. The Company shall have the right to collect such reasonable charges as are
necessary to conduct its business and to carry out its reasonable rules and
regulations in effect, as set forth in Attachment "A" hereto which is incorpora-
ted herein.
6. The Company shall be allowed to continue to collect the 5~ and 10~ sur-
charges authorized by the Railroad Commission of Texas Final Order in GUD-
1604 until such time as the respective amounts authorized to be collected have
been collected. The Company shall immediately notify the City when the a-
mounts authorized to be collected have been collected.
`i~- _` 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:~,~-~.~ ~ b , 19 ~~
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EFFECTIVE
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ATTACHMENT "A"
SCHEDULE OF SERVICE CHARGE5
1 Reconnect Charge
In addition to the charges and rates set out above, the company shall
charge and collect the sum of
Schedule Charge
8 a.m to 5 p.m Monday through Friday $20.00
5 p.m to 8 a.m Monday through Friday 30.00
Saturdays, Sundays, and Holidays 30.00
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. 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.
2. Appliance, Gas Light, and Air Conditioning Service Charges
Appliance Service Charges
Schedule Hourly Charge
8 a.m to 5 p.m. Monday through Friday $18.00
5 p.m, to 8 a.m. Monday through Friday $27.00
Saturdays, Sundays and Holidays $27.00
An additional charge of $12 added to the above charges when a second employee
(helper) is required.
Time in excess of one hour prorated in 15 minute increments, as follows:
Standard
Increments Working Hours
15 minutes $ 4.50
30 minutes $ 9.00
45 minutes $13.50
60 minutes $18 00
Non-Standard
Workine Hours
$ 6.75
$13.50
$20.25
$27.00
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Standard working hours defined as 8 a.m. to 5 p.m. Monday through Friday except
holidays.
All new company sold grills serviced free of charge for 90 days, during standard
Gas Light Service
Service
Clean and replace mantles
Painting (black and white and/or replacing
glass panes
All new company sold gas lights serviced free
of charge for 90 days, during standard working
hours.
Air Conditioning Service
Charge
$5 00
$4.00
Schedule Hourly Charge
Any hour Sunday through Saturday and Holidays $20.00
Time in excess of one hour prorated in 15 minute increments, as follows:
Increments All Hours
15 minutes $ 5.00
30 minutes $10 00
45 minutes $15 00
60 minutes $20.00
All new company-sold air conditioning units serviced free of charge for one year
from date of installation.
No additional charge for second employee (helper).
Labor charges in excess of factory allowances for warranty replacement and
repair will be passed on to the customer
3. Charges for replacing Yard Lines
Item or Service Charge
Basic service charge for all replacement
work $40.00
Prebent Riser with- Support Post $20 00
Noncorrodible Prebent Riser $15.00
Stopcock $ 4.95
Ditch, replace lyv inch (or smaller) pipe,
and obtain city inspection $ 2.00 per foot
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Remove grass, ditch, replace lY~ inch
•(or smaller) pipe, obtain city inspec-
tion and replace grass $ 2.30 per foot
Insert lY4 (or smaller) Polyethylene
pipe in existing service line $ 1 90 per foot
Special trip to perform yard line work
at customer's request and work cannot
be scheduled for Company convenience $40.00 additional
Work performed on overtime basis at
customer's request $60.00 per hour~•
Disconnecting and reconnecting customer
yard line at main when yard line is
replaced by other contractors $40.00
A firm price quotation will be made on the basis of labor, material, and other
costs for replacing yard lines larger than lY4 inch in size.
-Computed at one-fourth the hourly rate for each 15 minute period
or fraction thereof The same work performed on a call-out basis
will be charged at the overtime rate with a two hour minimum charge.
4. Main Line Extension Rate (Residential)
The charge for extending mains beyond the free limit established by Lone
Star Gas, or any free limit established by City franchise is $4.50 per foot except
for large commercial and industrial consumers which are handled on an actual
cost per foot basis.
5 Returned Check Charges
A returned check handling charge of $5 00 is made for each check returned
to the Company for reasons of non-sufficient funds, account closed, payment
withheld, invalid signature or improper preparation.
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Mayor a ~~unc~l ~oma~a.u~a.~cat~on
DATE REFERENCE SUBJECT L,~+TyLa, Stat Gas Company Request PAGE
NUMBER
8/18180 f~^~s- ary. lnc. cease in Local. Rates i of 2
G-4664
Lane Star Gas Company's '~reque.st fry author ty to Increase it.s residential
and commercial rates in Fott Werth and t'he L~the i.6 cities i.n its Fort War'th
Distribution Syste:+n was filed :gin .~ipri:Y 2 1.980 The requested rates would
produce additi~;n.al revenues of` $4. 946 xrri.~.1~ :~uY
History
Lone Star Ga.s is ,~.;perats.ng now on rates f:i:x.ed by the Railroad Commissio:. i..f'
Texas Order in Docket GUD-•1.604 effective Sri September 1979 after appeal
from the prex~iaus rats ords.nan~..e adopted by the City
Following the mr,;st recent rate inc.~ea.se equest: on 1~1a.y 20 1.980 (I~t&C G-4549)
the City Co~;nci11 app~ovsd a 120-day uspen.slon of the proposed rs.tss anal
engaged 'I'ouche Ross & Company to e~al.uate the merits of the rate request
The consultant has c~omp7.eted its study and. r:pcrt and has recommended a
smaller increase than that ~'equ~.s ed by t:t~.e: comp~;.ny The consultant's report
and recommendationv, in Attachment "A det.s.il is findings and results
In summary the canL,ultant~ rec.om~mends tha~r an.~y $2 742 million a.dditiona.l
revenue is regr~.ired 5a% of the c~~mpany,ns s~rq~e;,t of $4 946 million The
consultant also has tec.,~mmended in.c:~'eases ~.n mf.scel.3.aneous charges for
appliance air conditioning anal ya,rdl.ight s~:r~Y.ces and. smaller increases ixt
the residential and commercial bass.c rates as summarized iri the following
tabulation
LONE STAR. GA.S COI~fiPANY
CONSULTANT
Basic customer - Re:sidexitial $3 a5 $3 75 (same)
charge - Commer ~.al. e 00 7 00 (same)
Rate pe.r -Winter $2 8 20098 $2 699544
mcf - ~ Summer 2 5770098 2 449544
Alternative
rate, flat- none
rats year round
$2 64636
The consul. .ant made. n~o spec.ifiw ;recomme:ndation on which of the two rate corms
should be ut.ili.zed but estimates that either 'wou.ld produce tr.e required
$52 99 million commercial and. ~°eside.nt.i.a1 .~°eve.nuss shown en page 12 of the
attached report
The present. ~!°at~c is a flat-rate. with. xio cu.sto?ner charge i e , the customer
Pays $4 00 for 0 to 1 mcf cons~.mption 7'h.e "c us tamer charge of $3 75/month
is a new feature and acco~rdi.ng to the cora~:.1 .ant is cost-based and cost-•
justified
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DATE REFERENCE SUBJECT LOne Star Gas Company Request PAGE
8/18/80 NUMBER
G-4664
for an Increase in .Local Rates
2 0> 2
The city staff has developed the charts in Attachment '.B to show the impact
of the two rate forms on typical customers' bills The winter-summer rate is
desired by the company as a method of improving its load factor by increasing
gas use in the off-peak summer months The staff recommends the retention
of the fiat-rate charge rate-form of $2 64636 per mcf as proposed by the
consultant beta-use it would offer more relief to the residential consumer
during months of high gas usage
Re~.ommendations
It is recommended that
1 An ordinance be adopted establishing new rates to be charged
by Lone Star Gas Company as recommended in the Touche, Ross &
Company study and
2 The .Lone Star Gas Company be invoiced to reimburse the City
of Fort Worth for funds expended to engage the consultants
RLH ms
Attachments
,.e
APP-ROVED BY-
CITY COUNCIL
~
~ 1980
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SUBMITTED FOR THE
CITY MANAGER'S
DISPOSITION BY COUNCIL:
PROCESSED BY
OFFICE BY ^ APPROVED
ORIGINATING
DEPART
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MENT HEAD:
ahl C Isham
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~ CITY SECRETARY
FOR ADDITIONAL INFORMATION A
CONTACT Paul C o Ish m DATE