HomeMy WebLinkAboutOrdinance 7734 ORDINANCE NO. 77-�T
AN ORDINANCE REGULATING THE RATES AND CHARGES OF ALL
PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS OF PER-
SONS ENGAGED IN THE BUSINESS OF FURNISHING, DISTRIB-
UTING OR DELIVERING NATURAL GAS TO RESIDENTIAL AND
COMMERCIAL CUSTOMERS IN THE CITY OF FORT WORTH, TEXAS;
REPEALING ORDINANCES NOS. 7401 AND 7678; PROVIDING A
PENALTY FOR THE VIOLATION HEREOF; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, by City of Fort Worth Ordinance No. 5299, adopted
December 21, 1964, Lone Star Gas Company was granted a franchise
to use the streets, alleys and public thoroughfares of the City
in the operation of its business as a gas utility for a term of
25 years; and
WHEREAS, by City of Fort Worth Ordinance No. 7401, adopted
August 9, 1976, as amended by City of Fort Worth Ordinance No.
7678 adopted December 20, 1977, the rates to be charged Fort
Worth commercial and residential consumers of natural gas for
all uses were last set; and
WHEREAS, the Opinion and Order of the Railroad Commission
of Texas in Gas Utilities Docket No. 588 dated June 30, 1975,
was the last order establishing Lone Star Gas Company's Gate
Rate which is supported by substantial evidence; and
WHEREAS, said Order of the Railroad Commission of Texas
found, inter alia, that Lone Star Gas Company experienced a
weighted average cost of purchased gas during February, 1975,
of 72.29 cents per Mcf; that Lone Star Gas Company was entitled
to an 8% return as a fair rate of return on the fair value rate
base found; that a city gate rate of $1.0399 per Mcf would pro-
duce the approximate rate of a return to which it found Lone
Star entitled so long as the weighted average cost of purchased
gas remained at 72.29 cents per Mcf; and that a gas cost adjust-
ment rule was necessary in the public interest and, therefore,
an increase or decrease in the authorized gate rate of $1.0399
per Mcf is authorized by 85% of the amount by which Lone Star's
weighted average cost of purchased gas during the base period
is more or less than 72.29 cents per Mcf as computed in accord-
ance with the gas cost adjustment formula detailed and set out
in Exhibit "A" to said Order in GUD No. 588; and
WHEREAS, heretofore on October 31, 1977, Lone Star Gas
Company made application for a rate increase seeking an 8.7/
rate of return on an Adjusted Value Rate Base of $47,244,001.00
necessitating, according to Lone Star's calculations, an increase
in gross annual Residential and Commercial gas sales revenues
of $3,510,416.00 from its Fort Worth Distribution System consumers; and
WHEREAS, hearings have been held on the said application
of Lone Star Gas Company at which all interested parties were
given a full opportunity to be heard on the requested rate in-
crease; and
WHEREAS, the hearings on said rate increase application
have now been concluded and closed and the City Council has
duly considered all matters presented to it in the premises;
NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
SECTION 1.
That the City Council of the City of Fort Worth, Texas,
in the exercise of its sound legislative discretion finds the
following facts to be established:
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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 $26,640,983.00 and an Adjusted Value Rate Base of $32,571,299.00;
b. That Lone Star Gas Company is entitled to a 9.8% rate of
return on its Invested Capital Rate Base and an 8.0156% rate of
return on its Adjusted Value Rate Base; and that said rates of
return are fair, reasonable and just under the facts and circum-
stances presented;
C. That Lone Star Gas Company requires a net operating
income of $2,610,816.00 on revenues from Residential and Com-
mercial gas sales of $43,484,118.00 to achieve the foregoing
fair rates of return (based upon adjusted figures for test year
ending June 30, 1977; calculations utilizing a stipulated gas
cost, for purposes of this rate proceeding only, of $1.6867
per Mcf; a Reconnection Charge of $15.00; and termination of
the currently effective Gas Air Conditioning discount of 5%
following the 1978 Air Conditioning Season) ;
d. That pending a resolution of all protests filed and
a final disposition upon remand of Docket GUD No. 683 being
reached before the Railroad Commission of Texas or, if appealed,
the court or courts to which appealed, the gate rate set by
the said Commission pursuant to its order in GUD No. 588 and
the Purchased Gas Adjustment Rule promulgated thereby, shall,
as, and after being specifically authorized by the City Council,
become a part of the burner tip rates to be charged Residential
and Commercial customers in the City of Fort Worth for the
specified, succeeding 3 month period; that notwithstanding
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monthly reports of gas costs submitted by Lone Star to the
Commission under GUD No. 588 the "basing period" for
averaging gas costs to determine a quarterly increase or
decrease therein shall be the 3 month period immediately
preceding the lst day of April, July, October and January;
and that all out-of-period gas costs, i.e. charges for gas
delivered by the Transmission Division during periods prior
to the immediately preceding (3 month) basing period, shall
be disallowed in determining the weighted average cost of
gas for the basing (preceding 3 month) period; and
e. 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 June 1, 1978.
SECTION 2.
That for all gas consumed on and after June 1, 1978,
and billed on and after July 1, 1978, 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:
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A.
For Service Exclusive of Consumption for Air
Conditioning Purposes
{1) For Distribution Services Between the City Gate and
Burner-tip:
(a) From 6/1/78 to 6/l/79:
*i. First 1000 cu. ft. (1 Mcf) or fraction $ 1.2080
ii. All over 1 Mcf - per Mcf .7080
(b) On and after 6/l/79:
*i. First 1000 cu. ft. (1 Mcf) or fraction $ 1.2046
ii. All over 1 Mcf - per Mcf .7046
*Note: This constitutes a minimum bill to be
rendered any commercial or residential customer.
(2) For Gas Cost:
(a) From 6/1/78 to 8/1/78:
All gas to be billed as such at the rate of $ .1751
per ccf. This amount is calculated on the basis of
GUD No. 588 using weighted average costs of gas pur-
chased during March, 1978, less out-of-period adjust-
ments, as reported by Lone Star's Statement of Costs
dated April 12, 1978, to arrive at a GCA of $ .7107
per Mcf added to a Base Authorized Gate Rate of $ 1.0399.
(b) On and after 8/l/78, Gas Cost will be adjusted based
upon quarterly weighted average cost of gas for Quarter
April thru June 1978 to be reported 10-20 July, 1978,
and subject to approval by the City Council.
See paragraphs C(4) and (6), below.
(3) Resulting in Burner-tip rates of:
(a) From 6/1/78 to 8/l/78:
i. First 1000 cu. ft.(1Mcf) or fraction thereof:
$ 1.2080 (minimum) to $ 2.9586
ii. All over 1 Mcf at per Mcf rate of: $2.4586
(b) After 8/l/78, rate will be adjusted based upon
quarterly gas cost. See A(2) (b) , above.
Additionally, on and after 6/l/79 there will
be an adjustment due to discontinuance of the
air conditioning discount. See A(1) (b) , above.
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B.
For Consumption for Air Conditioning Purposes
(1) For quantities of natural gas less than 8,000 cubic feet con-
sumed by residential customers using gas for air conditioning pur-
poses during billing periods between the meter reading dates in
June and October of 1978, the rates prescribed in Section 2A of
this Ordinance shall be charged.
(2) For quantities of natural gas in excess of 8,000 cubic feet
consumed by residential customers using gas for air conditioning
purposes during billing periods between the meter reading dates in
June and October of 1978, the rates shall be the cost of gas plus
$ .5883 per Mcf for cost of distribution service between the City
Gate and Burner-tip [Cost of Distribution Service ( .7080) less 5%
plus the cost of gas used in the Rate Case ($1.6867)] .
(3) In 1979 and subsequent years, the rates shall be the rate shown
in Section 2A of this Ordinance.
(4) For quantities of natural gas separately metered and consumed
by commercial customers for air conditioning purposes during billing
periods between the meter reading dates in June and October of 1978,
the rate shall be that shown in B(2) above.
(5) For quantities of natural gas not separately metered and con-
sumed by commercial customers for air conditioning purposes during
billing periods between the meter reading dates in June and October
of 1978, the rate shall be that shown in B(2) above applied to
volumes computed as follows:
June 8 Mcf per nominal ton installed capacity*
July 9 Mcf "
August 9 Mcf "
September 8 Mcf "
October 5 Mcf "
*Installed capacity shall mean name-plate capacity of the plant
normally and regularly used for maximum conditions and does not
include standby or unused facilities. The Mcf so computed shall
not exceed 95/ of the total monthly consumption. All gas consumed
in excess of the quantities determined above shall be billed in
accordance with Section 2A of this ordinance.
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C.
Special Provisions and Adjustments
(1) The above rates are 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.
(2) Bills are due and payable when rendered and if not paid within
20 days of the date shown on the bill as the "present meter reading"
date or the "for service through" date, subjects the customer to im-
mediate termination of gas service unless they have made other pay-
ment arrangements with the Company. Restoration of service is
subject to the Company's reasonable regulations and charges as
authorized in paragraph C(4) below to include a $15.00 Reconnect
Charge.
(3) In addition to the rates prescribed herein, 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; subject to compliance with the Quality of
Service Rules and Regulations adopted by the Gas Utilities Division
of the Railroad Commission of Texas effective June 26, 1977, as
Substantive Rule No. 051.04.03.024, promulgated in Volume 2, No. 47
of the Texas Register dated June 14, 1977. A current copy of such
charges shall be filed with the Consumer Protection Division of the
City of Fort Worth.
(4) The amount of each monthly bill computed at the above rates
shall be subject to the following adjustments -
PROVIDED, the City Council authorizes such adjustment after
being advised thereof; and
PROVIDED further that the Company shall credit to current
residential and commercial customers any amount collected pursuant
to the adjustment authorization hereinafter set out which is
subsequently determined to be excessive, invalid or unreasonable by
order of the Texas Railroad Commission or by final judgment of a
court:
(a) Plus or minus the amount of any quarterly increase or
decrease, respectively, in the weighted average cost of gas above
or below the City Gate Charge recognized herein as being $1.7506 per
Mcf (Base Gate Rate of $1.0399 per Mcf as recognized by the Texas
Railroad Commission in GUD No. 588, plus a GCA effective April 20,
1978, calculated under the terms of GUD No. 588, without out-of-
period adjustments, of $ .7107) . Such quarterly increase or decrease
shall be reported to the City Council (Attention: Utilities Supervisor)
between the 10th and 20th of the months of April, July, October and
January, for the preceding quarter for consideration and approval
effective for gas used and consumed for the quarter commencing on
and after the 1st of the succeeding month, i.e. May, August, November
and February. Such quarterly increase or decrease being either:
i. An amount expressed in dollars or cents per Mcf specified
and authorized by the Texas Railroad Commission or court of compe-
tent jurisdiction which is neither pending protest nor being
litigated in the courts; or
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ii. An amount expressed in dollars or cents per Mcf
computed and arrived at utilizing the Purchased Gas Cost
Adjustment Rule as contained in and promulgated by Exhibit "A"
to the Texas Railroad Commission Order in GUD No. 588
dated June 30, 1975, and only costs for gas actually pur-
chased during the preceding quarter ("Basing Period") as
that term is used in said Exhibit "A".
(b) Plus or minus an amount equivalent to the proportion-
ate part of any new tax or changed 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
June 1, 1978, upon or allocable to the Company's distribution
operation by any new or amended law, ordinance or contract.
(5) The Company shall continue furnishing the City a copy of
its monthly report and calculations of its fluctuating weighted
average cost of gas to the Railroad Commission of Texas as
that report is required by the terms of the Commission's order
in GUD No. 588 or amendments thereto.
(6) No adjustment as contemplated by paragraphs C(4) (a) and
(b) above shall become effective until the first of the month
following the Company's written advice to the City's Utility
Supervisor of its intention to make such adjustment and in no
event in less than ten (10) days following receipt of such
advice. Upon receipt of such advice, the City's Utility Super-
visor through the City Manager shall apprise the City Council
thereof and make any recommendation he deems appropriate in
the premises for the council's consideration and appropriate
action. Upon the Council authorizing such a change in rates
the adjustment authorized may become effective as to gas used
and consumed after the effective date as herein specified.
The authorization for adjustments herein contained notwith-
standing, NO ADJUSTMENT RESULTING IN A RATE INCREASE MAY EVER
BE APPLIED RETROACTIVELY, VIZ. TO GAS ALREADY USED AND CONSUMED.
(7) Failure of the Company to apply any adjustment shall not
constitute a waiver of the Company's rights from time to time,
or at any time, to make any adjustment authorized, in whole or
in part in any subsequent monthly bill that may be applicable
to such bill.
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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:
ity Att rney
ADOPTED: M A g ( G ?
EFFECTIVE:-P'l A 4 1 el '7 I
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