HomeMy WebLinkAboutOrdinance 7316 ORDINANCE NO,
AN ORDINANCE SUSPENDING THE FURTHER OPERATION
OF THE PURCHASED GAS ADJUSTMENT PROVISIONS OF
ORDINANCE NO, 7238 AS AMENDED BY ORDINANCE
NO, '7301; PROVIDING FOR CONTINUATION OF THE
LAST EFFECTIVE GATE RATE, I. E. $1.1863 PER
MCF; AND PROVIDING FOR AN EFFECTIVE DATE,
WHEREAS, the escalating cost of natural gas has become
a monthly source of concern to the citizens, consumers and customers
of Lone Star Gas Company in the City of Fort Worth, and
WHEREAS, when the City Council of the City of Fort Worth
adopted Ordinance No, 7238 and the amendment thereto, pertaining to
furnishing, distributing or delivering natural gas to residential
and commercial consumers in the City of Fort Worth, it specified.
that automatic monthly adjustments for purchased gas costs made
pursuant to the Purchased Gas Adjustment Rule promulgated as
Exhibit A to the Texas Railroad Commission's Order in GUD No. 588
would be permitted so long as no increase exceeded by 33 1/3l the
72.29¢ purchased gas cost figure utilized by the Commission in
establishing the June 30, 1975 Gate Rate, and further specified
that any increase or proposed increase in excess thereof required
specific City Council approval; and
WHEREAS, the 33 1/3% limitation was a deliberate and
considered ceiling imposed in light of Lone Star Gas Company's
projections of increased gas costs through July of 1976 which
anticipated a maximum increase in cost to 98.61,g4 per Mcf or a net
increase impact of 22,37¢ per mcf on the burner-tip rate; and
WHEREAS, since passage of Ordinance No. 7238, gas costs
have been reported:
For October, 1975 - $.9725 per Mcf with net increase
of $.2122 to be charged commencing
12/10/75
For November, 1975 -$.8601 per Mcf with net increase of
$.1166 to be charged commencing
1/10/76
For December, 1975 -$.8951 per Mcf with net increase of
$.1464 to be charged commencing
2/10/76
For January, 1976 - $1.1010 per Mcf with net increase of
$.3214 originally to be charged
commencing 3/10/76 - postponed by
Amendment to Ordinance for charge
commencing 4/1/76
For February, 1976 -$1.0863 per Mcf with net increase of
$.3089 to be charged commencing
5/l/76, and
WHEREAS, the very first Gas Cost Statement submitted
following the implementation of the new rates under Ordinance
No. 7238, i.e. the October, 1975 Gas Cost Statement, was protested
to the Texas Railroad Commission because of Lone Star Gas Company's
including therein so-called "out-of-period" adjustments for gas
purchased, sold and consumed during various periods between June of
1972 and the end of September, 1975, which protest is still pending
and unresolved although the proportionate costs (.11770 per Mcf)
attributable to the out-of-period adjustments and allocable to Fort
Worth consumers have already been billed and paid for based on con-
sumption during the period 12/10/75 to 1/10/76, which period em-
braces one of the highest if not the highest periods of consumption
by residential and commercial consumers for the Winter '75-276 heating
season; and
WHEREAS, the City of Fort Worth has filed a similar protest
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with the Texas Railroad Commission concerning the February, 1976
Gas Cost Statement (Received by the Commission on March 15, 1976) ,
and based upon experience, a resolution thereof by the Commission
cannot be expected prior to August, 1976; and
WHEREAS, although the City Council of the City of Fort
Worth acknowledged the Texas Railroad Commission's finding that
permitting Lane Star Gas Company to recover 85% of their experienced
increased gas costs on a monthly basis was in the public interest
and the Council did therefore authorize the monthly recalculation
of the gate rate based upon such increased costs in accordance with
the Purchased Gas Adjustment Rule promulgated as Exhibit A to the
Commission order in GUD No. 588, the Council did not and did not
intend thereby to abandon its regulatory responsibilities nor to
authorize increases in the price of this commodity essential to
the health and welfare of the citizens of the City of Fort Worth
without demonstrated and justified need; and
WHEREAS, the City Council of the City of Fort Worth by
Resolution adopted March 17, 1976, directed the City Manager to,
among other things and after due inquiry, make recommendations to
the City Council concerning all aspects of the operation and rate
structure of Lone Star Gas Company in the City of Fort Worth; and
WHEREAS, due notice of the Council's concern over
escalating natural gas costs has been given to Lone Star Gas Company
and despite opportunity for hearing given, satisfactory explanations
have not been forthcoming to date; and
WHEREAS, the present authorized gate rate, utilizing the
Purchased Gas Adjustment Rule and applying it to January, 1976,
acquisitions, is $1.1863 per Mcf which, by ordinance No. 7301, was
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continued effective until April 1, 1976;
NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL
OF THE CITY OF FORT WORTH, TEXAS:
SECTION 1.
That pending City Council action on the City Manager's
recommendations directed by Resolution of March 17, 1976, the further
operation of subparagraphs (5) (a) and (5) (d) of Paragraph C. ,
Section 2, Fort Worth Ordinance No. 7238 as amended by Fort Worth
Ordinance No. 7301, is hereby suspended.
SECTION 2.
That pending City Council action on the City Manager's
recommendation directed by Resolution of March 17, 1976, Lone Star
Gas Company is authorized to continue billing for gas used and
consumed by residential and commercial customers in the City utiliz-
ing the last effective gate rate, i.e. $1.1863 per Mcf.
SECTION 3.
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:
Ay■..
City Attorney T
Adopted:_
Effective:
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