HomeMy WebLinkAboutResolution 421 RESOLUTION I€I.1; NO.
R E S O L U T I O N
WHEREAS, recent months have been characterized by unusually cold
weather, and
WHEREAS, this has resulted in unusually high natural gas bills for
Fort Worth residential and commercial customers of Lone Star
Gas, and
WHEREAS, Lone Star has reported unusually high volumes of gas sold
to residential and commercial customers during this period which
resulted in temporary curtailment of industrial customers, and
WHEREAS, high volume sales to residential and commercial customers
should result in Higher than usual profits for the company, and
WHEREAS, such profits may permit Lone Star to make profits in excess
`r of those authorized in the rates approved under Ordinance No. 7401,
and
WHEREAS, the protection of the consumer and the maintenance of a healthy
utility company are responsibilities of this council, and
WHEREAS, the legal authority for this council to suspend, modify, or
defer any increase or decrease in the Gas Cost Adjustment is
clearly contained in Ordinance No. 7401, and
WHEREAS, such a suspension of Gas Cost Adjustments was made by unanimous
vote of this council on March 17, 1976
THEREFORE be it resolved, (1) that this council temporarily modify the
proposed March GCA to hold it at the February level of $.2570
per MCF; and
(2) That such modification be in effect until such time as the
staff can review Lone Star's financial reports for the period
since the passage of Ordinance No. 7401 in order to determine
whether or not Lone Star's profits on an annualized basis are
likely to exceed the rate of return authorized in that ordinance;
and
(3) That the staff be instructed to conduct such an inquiry within
the next sixty days; and
(4) That if such inquiry indicates excessive profits are not being
made by Lone Star Gas the 6.5p addition GCA be authorized to be billed
immediately upon the results of such findings by this Council; and
(5) That it be studied for a twelve-month period ending December 31,
1976; and
f61 That the projections be made with current rates in effect; and
(7) That this study take no longer than sixty days and be expedited
as soon as possible; and
(8) That, if in fact a pass-through is justified, it be billed to
the customer over the three-month period of June, July, and August
1977; and
r..
(9) That the effective date of the pass-through, if there is one
valid, be March 1, 1977, and that, if the study indicates pass-
throughs are justified, then, including any subsequent pass-through
that are recommended, the pass-throughs are to go into effect on
the date requested.
Adopted: February 22, 1977