HomeMy WebLinkAboutOrdinance 6715 ORDINANCE NO.
AN ORDINANCE REGULATING THE RATES AND CHARGES BY
ALL PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS
OF PERSONS ENGAGED IN THE BUSINESS OF FURNISHING,
DISTRIBUTING OR DELIVERING NATURAL GAS TO RESIDEN-
TIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF FORT
WORTH, TEXAS; REPEALING SECTION 3 OF ORDINANCE NO.
6189, THE PRESENT RATE ORDINANCE; MAKING THIS ORDI-
NANCE CUMULATIVE OF ORDINANCE NO. 4290, WHICH ORDI-
NANCE SETS OUT SPECIAL RATES FOR AIR CONDITIONING;
MAKING THIS ORDINANCE CUMULATIVE OF ORDINANCE NO.
5299, THE LONE STAR GAS COMPANY CONSENT ORDINANCE;
PROVIDING A PENALTY FOR THE VIOLATION HEREOF; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
SECTION 1.
That Section 3 of Ordinance No. 6189 of the City of Fort
Worth is hereby repealed, said ordinance having been adopted
on the 3rd day of November, 1969, and said Section 3 thereof
being the section setting rates and charges for gas service
to commercial and residential customers in the City of Fort
Worth. That all other sections of Ordinance No. 6189 shall
remain in full force and effect.
SECTION 2.
That hereafter all persons, firms, corporations or asso-
ciations of persons engaged in the business of furnishing,
distributing or delivering natural gas to residential and com-
mercial consumers in the City of Fort Worth shall charge for
said service in accordance with the schedule hereinafter set
forth.
SECTION 3.
That after a full and adequate hearing at which all
interested parties were given a full opportunity to be heard,
the City Council finds that the following schedule of rates
will furnish sufficient net revenue, after the payment of all
expenses, taxes, other charges, and depreciation, to provide
a fair and reasonable return to the owners and operators on
their property devoted to the consumers in the City of Fort
Worth:
FOR MCF OF GAS GROSS NET
OR FRACTIONS THEREOF PER MCF PER MCF
First 1 MCF (Minimum) $1.778 $1.60
Next 3 MCF 1.156 1.04
Next 6 MCF 1.089 .98
Next 15 MCF 1.044 .94
Next 25 MCF 1.000 .90
Next 50 MCF .944 .85
Over 100 MCF .922 .83
No gas bill will be rendered to any residential
or commercial consumer served under the above
rates not consuming any gas during any monthly
billing period.
ADJUSTMENTS
The amount of each net monthly bill computed at
the above rates shall be subject to the following
adjustments:
Plus or minus the amount of any increase
or decrease, respectively, above or below
the 42.5 cents per MCF level in the intra-
company city gate charge as authorized by
the Railroad Commission of the State of
Texas or other regulatory bodies having
jurisdiction for gas delivered to the dis-
tribution system of Lone Star Gas Company
for sale to residential or commercial con-
sumers where such changes are caused by in-
creases or decreases in the cost of gas pur-
chased by the Company; and
Plus 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 April 1, 1972, upon or allocable
to the Company's distribution operation by
any new or amended law, ordinance or contract.
Each gross monthly bill shall be adjusted pro-
portionately. Company, at its option, may forego
the application of any adjustment if such adjust-
ment would result in an increase in the monthly
bill; however, failure of Company to apply any ad-
justment shall not constitute a waiver of Company's
rights from time to time, or at any time, to make
any adjustment, in whole or in part, in any sub-
sequent monthly bill that may be applicable to
such bill.
No adjustment shall become effective until
thirty (30) days after Company shall have advised
the City's Utilities Supervisor in writing of its
intention to make such adjustment. Whereupon, the
Utilities Supervisor shall immediately notify the
City Council of any such proposed adjustment, giving
his recommendation thereon.
Net rate shall apply to all bills paid within
ten (10) days from monthly billing date; gross rate
shall be applicable thereafter.
The above rate is applicable to each residential
and commercial consumer per meter per month or for
any part of a month for which gas is used at the
same location.
In addition to the aforesaid rates, 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.
SECTION 4.
That Ordinance No. 4290, providing special rates for all
natural gas consumed by residential and/or commercial cus-
tomers for air conditioning, is not repealed and shall remain
in full force and effect; and that Ordinance No. 5299, adopted
by the City Council on the 21st day of December, 1964, and be-
ing the ordinance granting consent to Lone Star Gas Company
to use the streets, alleys and public thoroughfares of the
City of Fort Worth for the operation of its gas utility dis-
tribution business, shall remain in full force and effect,
save and except Section 7 of Ordinance No. 5299 heretofore
repealed by Ordinance No. 6189, but nothing herein contained
shall be construed as renewing or extending the term of the
consent granted to Lone Star Gas Company in said Ordinance
No. 5299.
SECTION 5.
That any person, firm or corporation who refuses to com-
ply 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 6.
That this ordinance shall take effect and be in full
force and effect from and after the date of its passage and
publication as required by law.
APPROVED AS TO FORM AND LEGALITY:
ity Attorney
ADOPTED LCli obi//Ti�/
LINE City of Fort Worth, Texas
11RAN41U Mayor and Council Communication
�RAH
AUGX;NFr,;jG I DATE REFERENCE SUBJECT: Request for Rate Increase - PAGE
NUMBER Lone Star Gas Company l
IdA 8/28/72 G-2054 I of �
Un April 12, 1972, the Lone Star Gas Company filed an application for an
increase in gas rates in Fort Worth, and the request was referred by the
City Council to the administrative staff for analysis and recommendation.
Transmitted herewith is a report prepared by the Utilities Supervisor
reflecting the results of his study of the application.
In summary, the attached report recommends an increase in rates which will
produce an estimated additional $625,000 in gross revenues in Fort Worth,
based on an average rate increase of 5.4 per cent. The rates proposed in
the Lone Star Gas Company's request would have produced an estimated addi-
tional $1,043,000 in gross revenues, with an average rate increase of
almost 9 per cent. The proposed new rate structure also differs from the
Lone Star Gas Company's request in that it reduces the extent to which
the burden of the increase would fall on smaller gas users, compared to the
Company's request.
A proposed ordinance has been prepared for the City Council's consideration
which would authorize the new rate schedule as recommended by the Utilities
Supervisor, to become effective as soon after publication of the ordinance
as it can be implemented by Lone Star Gas Company (approximately one week) .
A 1Ppurchased gas adjustment" clause is contained in the proposed ordinance.
The Texas Railroad Commission has exclusive authority over gate rate regu-
lations and has already approved such clause and fixed the gate rate. The
Railroad Commission's action will enable the Company to pass on to its
customers any adjustments authorized by the Commission in the Company's
cost of purchased gas.
Recommendation
Approval of the proposed new gas rate schedule ordinance as outlined in the
attached report is recommended.
Ri9L:ms
Attachments
do
SUBMITTED BY: DISPOSITION COUNCIL: PROCESSED BY
PPRO D ❑ OTHER/ (DESCRIBE)
CITY SECRETARY
DATE
CITY MANAGER