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HomeMy WebLinkAboutOrdinance 4283 OFFICIAL RECORD ORDINANCE NO. Z Z 8 CITY SECRETARY FT. WORTH, TEX. AN ORDINANCE REGULATING THE RATES AND CHARGES MADE BY ALL PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS OF PERSONS ENGAGED IN THE BUSINESS OF FURNISHING, DIS- TRIBUTING OR DELIVERING NATURAL GAS TO DOMESTIC AND COMMERCIAL CONSUMERS IN THE CITY OF FORT WORTH, TEXAS; PROVIDING FOR THE REPEAL OF ALL ORDINANCES REGULATING RATES TO BE CHARGED FOR DOMESTIC AND COMMERCIAL USE; PROVIDING A PENALTY; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That hereafter all persons, firms, corporations or associations of persons engaged in the business of furnishing, distributing or deliver- ing natural gas to domestic and commercial consumers in the City of Fort Worth shall charge for said service in accordance with the schedule here- inafter set forth. SECTION 2. That after a full and adequate hearing at which all interested par- ties were given a full opportunity to be heard, the City Council finds that the following schedule of rates will furnish sufficient net revenues, after the payment of all expenses, taxes, depreciation and other charges, to provide a fair and reasonable return to the owners and operators on their property devoted to consumers in the City of Fort Worth: Rate Per 100 Cu. Ft. Gross Net For the first 700 cu. ft. of monthly consumption registered on one meter .1760 .1584 R For the next 19,300 cu. ft. of monthly consumption registered on one meter .08433 .07590 For the next 10,000 cu. ft. of monthly consumption registered on one meter .o8156 .0734o For the next 20,000 cu. ft. of monthly consumption registered on one meter .07600 .06840 For all in excess of 50,000 cu. ft. of monthly consumption registered on one meter .o6489 .05840 A deduction of ten per cent (10%) will be allowed for payment of bill within ten (10) days from the date of monthly billing. A minimum charge of sixty cents (64) net per meter per month will be made, even though the customer shall not have used sufficient gas in such month to make the amount of the bill equal to such charge of sixty cents (60j) r 1 SECTION 3. That any person, firm or corporation vho 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 Hun- dred Dollars ($200.00), and each day's violation shall constitute a separate offense. SECTION 4. That this ordinance shall take effect and be in full force and effect from and after the date of its passage and publication as required by law. APPROVED AS /TOOFFORM AND LEGALITY: City Attorney CITY OF FORT WORTH, TEXAS �. tflir OF FORT WORTH J�APR 2 9 196.Q _ TEXAS - - 0-k31 — OFFIC TH -ril`Y "NA_G_ERI Communication to Mayor and Council No. -54 i Cit:i 7arY April 29, 1960 Honorable Mayor and Members of the City Council Re: Application of Lone Star Gas Co. City of Fort Worth for increase in rates Mrs. McKnight and Gentlemen: The Lone Star Gas Company, Fort Worth Division of Distribution, on March 18 1%0, filed a formal application with the City Council for approval of an increase in its residential and commercial rates. The City Council re- ferred the application to the City Manager. The Utilities Supervisor and the City Attorney have made a study of the application and the following is their report: "The Lone Star Gas Company is requesting that they be given authority to increase their residential and commercial rates by five and four- tenths (5.4) cents per Mcf ( 1000 cubic feet). To allow the company to increase each step of the rate schedule by five and four-tenths (5.4) cents p6t Mcf, would, in effect, be passing on to the commercial and residential users the identical increase in charges ordered by the Railroad Commission of Texas on February 15, 1960 as a-Iresult of the recent gate rate hearing conducted by the Commission. The Rail- road Commission order established thrity-five and four-tenths (35.4) cents per Mcf as the maximum city gate charge, which was an increase of five and four-tenths (5.4) cents per Mc$ over the previous rate of thirty (3p) cents. "The rate applied for, based on 1959 consumption, will produce an average annual increase of approximately $4.75, or about six and nine-tenths (6.9) per cent on residential customers. The average increase per day would be approximately one and three-tenths (1 .3) cents. "The increase on commercial rates will average approximately $ 13.27 or about eight and three-tenths (6.3) per cent. The average increase per day will be about three and sixty-four one hundredths (3.64) cents. "It must be emphasized that the increases noted above constitute an overall average for consumers in such classifications and are not fixed. To state that a particular residential charge would be in- creased $4.75 per year or that a particular commercial charge would be Increased $ 13.27 per year would be in error for the increase may be more or it may be less, depending upon the customers usage, how- ever, the average increase overall will be approximately as stated, based upon the 1959 consumption quantities. MSC GO- 54 April 29, 1960 Page 2 "It is a reasonable assumption that the Gas Company's net income will decline if the fixed increase in the city gate charge is not passed on to the consumer. The increase is an operating cost that cannot be absorbed or offset by possible increased income from larger sales and at the same time provide the utility with a reasonable and fair return and an efficient operation of its business. "The City of Fort Worth actively participated in the gate rate case before the Railroad Commission and the Commission has by mandate set the final wholesale cost to the Lone Star Gas Company at thrity-five and four-tenths (5.4) cents per Mcf. As the price was set by Commission mandate there is no further practical recourse from that order available to the City of Fort Worth. The Lone Star Gas Company in its application does not propose any change in its rate schedule except the five and four-tenths (5.4) cents per Mcf increase to its residential and commercial customers. "The Supervisor of Public Utilities of the City of Dallas was chairman of the Cities Committee in the work in connection with the case before the Railroad Commission and it follows that a great deal of knowledge of the basis for the ruling by the Commission was assimilated by the Chairman and the Committee. The Supervisor of Public Utilities of Dallas recommended, Monday April 11 , 1960, that the Lone Star Gas Company's application for a rate increase of five and four-tenths (5.4 cents per Mcf be approved. His recommendation was as follows: "'Your Supervisor and members of his staff have given considerable time to this matter and recognize there is no alternative but to recommend to your Honorable Body that favorable consideration be given to the application from the Lone Star Gas Company-Dallas Division of Distribution for the increase in rates as hereto- fore outlined."' "The Dallas City Council voted approval of the rate increase Monday, April 18th, 1960 and one hundred sixty-five (165) other cities and towns served by Lone Star Gas Company have granted the increase. "Copies of the Lone Star Gas Company's Fort Worth Division's applica- tion and the Railroad Commission's order in Gas Utilities Docket No. 248 issued February 15, 1960 are attached. "The figures in the request for an increase in residential and com- mercial gas rates have been checked and have been found to be sub- stantially correct and do not in our opinion misrepresent any material facts." M&C GO- 54 April 29, 1960 Page 3 By reason of the active participation of members of the Fort Worth City staff in the gate rate case before the Railroad Commission in which the 5.40 increase per Mcf was ordered, together with additional study by the staff, it has been established that the rate increase applied for is Justified. The Utility Supervisor and City Attorney are in agreement with this report. Respectfully submitted, LPC: ih P. Cookingham City Manager Attach.