HomeMy WebLinkAboutOrdinance 7301 ORDINANCE NO. 2C)
AN ORDINANCE AMENDING ORDINANCE NO. 7238
BY EXTENDING THE INTERVAL BETWEEN NOTICE TO
THE CITY OF INCREASED GAS COSTS AND EFFECT-
ING INCREASED RATES BASED UPON SUCH COSTS;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, increased gas costs have become a monthly
source of concern to the consumers of natural gas, the
customers of Lone Star Gas Company and the citizens of the
City of Fort Worth; and
WHEREAS, a substantial increase in the cost of gas
to the residential and commercial customers of Lone Star Gas
Company for gas they consumed during November, 1975, and for
which they were billed in December, 1975, was attributable to
substantial "out-of-period" payments made during October, 1975,
by Lone Star Gas Company, the propriety of which was protested
to the Texas Railroad Commission in a timely fashion but which
protest is still unresolved although the protested costs have
already been paid by the customers and consumers in Fort Worth„
and
WHEREAS, the City of Fort Worth received a notice from
Lone Star Gas Company on about February 10, 1976, that the
January, 1976, weighted average cost of gas escalated to the
point that in utilizing the Purchased Gas Adjustment Rule
authorized by the Railroad Commission of Texas in GUD No. 588,
the gate rate to become effective 30 days from the February loth,
notification would exceed the thirty-three and one-third percent
(33 1/3/) figure specified in Ordinance No. 7238, as the limit
on cost of gas increase without express City Council approval;
and
WHEREAS, the City Council finds that lacking a
viable and effective regulatory check, the delay speci-
fied in paragraph C. (5) (d) under Section 2 of Ordinance
No. 7238 does not provide sufficient time to the Council
or to the City Staff to make the necessary thorough in-
quiry into the basis and justification of and for monthly
increases in the cost of gas utilizing the Purchased Gas
Adjustment Rule aforementioned; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH TEXAS:
SECTION 1.
That Subparagraph (5) (d) of Paragraph C. of
Section 2, Fort Worth City Ordinance No. 7238, is hereby
amended and upon amendment shall hereafter read as follows:
" (d) No adjustment shall become effective
until the first of the month following
expiration of thirty (30) days after the
Company shall have advised the Director,
Consumer Affairs Division in writing of
its intention to make such adjustment;
whereupon, the Director shall immediately
notify the City Council of any such proposed
adjustment, giving his recommendation thereon."
SECTION 2.
That pending April 1, 1976, implementation of the
February gate rate under the foregoing amendment, Lone Star
Gas Company is authorized to continue billing for gas used
and consumed by residential and commercial customers in the
City during February utilizing the previously effective
gate rate, i.e. $1.1863 per Mcf.
SECTION 3.
That this Ordinance shall take effect on and after the
-2-
the date of its passage and publication as required by
law.
APPROVED AS TO FORM AND LEGALITY:
�, rOA J
City Attorney
ADOPTED:
EFFECTIVE:
-3-
RILE City of Fort Worth, Texas
LINE Mayor and Council Communication
BAILIFF
GRAHAM DATE REFERENCE SUBJECT: Proposed Amendment to Lone PAGE
NUMBER
Star Gas Ordinance 1
AUGHINBAU 2/23/76 G-2981 1 of
The attached amendment to the Lone Star Gas Ordinance has been prepared
at the Council's request. The staff believes that it provides adequate
time to analyze and make recommendations on gas cost adjustments. It is
anticipated that the change will mean that Lone Star will begin billing
for changes in GCA on the first billing cycle of the month rather than
in the middle of a -cycle as now occurs. This means that all customers
will be charged the same rates during the same billing cycle.
Recommendation
It is recommended that the Council adopt the proposed ordinance extend-
ing the effective date of GCA pass through from not earlier than thirty
days after notification to not earlier than the first day of the month
following thirty days after notification to the City of proposed changes.
RNL:ms
Attachment
SUBMITTED BY: DISPOSITIO Y COUNCIL: PROC ED B
APPROVED ❑ OTHER (DESCRIBE)
&tc C—e. /6<9 �j�D/ CITY SECRETARY
` DATE
CITY MANAGER