HomeMy WebLinkAboutOrdinance 24876-06-2021 ORDINANCE NO. 24876-06-2021
ORDINANCE OF THE CITY OF FORT WORTH FINDING
THAT THE SETTLEMENT AGREEMENT BETWEEN THE
CITY AND COSERV GAS, LTD. IS REASONABLE;
ORDERING COSERV GAS, LTD. TO IMPLEMENT THE
RATES AGREED TO IN THE SETTLEMENT
AGREEMENT; REQUIRING REIMBURSEMENT OF
CITIES' RATE CASE EXPENSES; REPEALING ANY
PREVIOUSLY ADOPTED ORDINANCES IN CONFLICT
HEREWITH; PROVIDING SERVERABILITY; FINDING
THAT THE MEETING AT WHICH THIS ORDINANCE IS
PASSED IS OPEN TO THE PUBLIC AS REQUIRED BY
LAW; PROVIDING AN EFFECTIVE DATE; AND
REQUIRING NOTICE OF THIS ORDINANCE TO THE
COMPANY AND LEGAL COUNSEL
WHEREAS, on or about November 13, 2020, CoSery Gas, Ltd. ("CoServ" or
"Company"), pursuant to Gas Utility Regulatory Act ("GURA") § 104.102 filed a Statement of
Intent to Increase Rates with the Railroad Commission of Texas (the "Commission") within the
unincorporated areas it serves in the State of Texas and filed with the City of Fort Worth ("City")
a Statement of Intent to change gas rates in all municipalities exercising original jurisdiction
within the Company's service area, effective January 23, 2021; and
WHEREAS, the Company agreed to extend the proposed effective date to March 14,
2021; and
WHEREAS, the City has exclusive original jurisdiction over the rates, operations, and
services of a gas utility within the municipality, pursuant to GURA § 103.001; and
WHEREAS, GURA § 103.021 grants a municipality authority to require a utility to
submit information as necessary to make a reasonable determination of rate base, expenses,
investment, and rate of return in the municipality; and
WHEREAS, on or about January 12, 202I, the City passed Resolution No. 5330-01-
2021 to suspend the effective date of the Company's proposed rate change for ninety (90) days
pursuant to GURA § 104.107; and
WHEREAS, the City joined with other similarly situated cities, the Steering Committee
of Cities Served by the Company Gas, Ltd. ("CoSery Gas Cities"), to conduct a review of the
Company's application by hiring and directing legal counsel and consultants to prepare a
common response and to negotiate with the Company's and direct any necessary litigation; and
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CoSery Gas—Gas Rate Ordinance
WHEREAS, on or about May 14, 2021, the CoSery Gas Cities reached a Settlement
Agreement resolving all issues relating to the Company's Statement of Intent to Increase Rates;
and
WHEREAS, the CoSery Gas Cities members and attorneys recommend that the City of
Fort Worth approve this Settlement Agreement setting rates; and
WHEREAS, GURA § 103.022 provides that reasonable costs incurred by cities in
ratemaking activities are to be reimbursed by the regulated utility.
THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
Section 1. That based on the information previously provided to the City Council and
all information currently before the City Council, the City Council approves the Settlement
Agreement, attached hereto as Attachment "A", reached between CoSery Gas Cities and the
Company, and hereby finds that the rates and terms agreed to in the Settlement Agreement are
just and reasonable.
Section 2. That the City orders and authorizes the Company to implement the rates
agreed to in the Settlement Agreement.
Section 3. That the rates, terms and conditions established by the Settlement
Agreement shall be effective for meters read on or after the effective date of the Commission's
Final Order.
Section 4. That the City's reasonable rate case expenses stated in the Settlement
Agreement are just and reasonable and shall be reimbursed by the Company.
Section 5. If any provisions or conditions of this Ordinance directly conflict with any
provisions or conditions of other Ordinances previously adopted by the City Council, the
conflicting provisions of such previously adopted Ordinances are hereby repealed.
Section 6. If any portion, section or part of a section of this Ordinance is
subsequently declared invalid, inoperative or void for any reason by a court of competent
jurisdiction, the remaining portions, sections or parts of sections of this Ordinance shall be and
remain full force and effect and shall not in any way be impaired or affected by such decision,
opinion or judgement.
Section 7. That it is hereby officially found and determined that the meeting at which
this Ordinance is passed is open to the public as required by law and the public notice of the
time, place, and purpose of said meeting was given as required.
Section 8. This Ordinance shall take effect and be in full force and effect from and
after the date of its adoption. The City Secretary is hereby directed to deliver a copy of this
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CoSery Gas—Gas Rate Ordinance
Ordinance shall be sent to CoServ, care of Charles Harrell, CoSery Gas, Ltd. 7701 South
Stemmons Freeway, Corinth, Texas 76210 (CHarrell@coserv.com), and to Thomas Brocato at
Lloyd Gosselink Rochelle & Townsend, P.C., 816 Congress Avenue, Suite 1900, Austin, Texas
78701 (tbrocato@lglawfirm.com).
AND IT IS SO ORDAINED.
ADOPTED AND EFFECTIVE this 81h day of June 2021.
ATTEST: APPROVED AS TO FORM AND LEGALITY:
Christopher Austr' (Jun 10,202115:48 CDT)
Mary J. Kayser Christopher Austria
City Secretary Assistant City Attorney
F ART�L
* 2
�XAS
Page 3 of 3
CoSery Gas—Gas Rate Ordinance
Attachment "A" Docket No. OS-20-00005136
CoSery Exhibit 12
RAILROAD COMMISSION OF TEXAS
STATEMENT OF INTENT OF §
COSERV GAS,LTD. TO INCREASE §
RATES IN UNINCORPORATED § OS-20-00005136
AREAS OF COLLIN,DENTON,AND §
KAUFMAN COUNTIES, TEXAS §
UNANIMOUS SETTLEMENT AGREEMENT
This Settlement Agreement is entered into by and between CoSery Gas,Ltd. ("CoServ"or
the"Company"), Staff of the Railroad Commission of Texas("Staff"),and the Steering Committee
of Cities Served by CoSery Gas, Ltd. ("CoSery Gas Cities")' (collectively,the"Signatories").
WHEREAS, on November 13, 2020, CoSery filed a Statement of Intent to Increase Rates
with the Railroad Commission of Texas (the "Commission") within the unincorporated areas it
serves in the State of Texas and filed a Statement of Intent with the Cities of Allen, Aubrey,
Carrollton, Celina, Corinth, Denton, Forney, Fort Worth, Frisco, Highland Village, Lewisville,
Lucas,McKinney,Murphy,Parker,Plano,Providence Village,The Colony,and Wylie and Towns
of Argyle,Bartonville, Copper Canyon, Crossroads,Double Oak,Fairview,Flower Mound, Little
Elm,Northlake,Ponder,Prosper, Shady Shores,and St. Paul (collectively, "Statement of Intent");
and
WHEREAS,the Commission docketed the rate request as OS-20-00005136; and
WHEREAS,Staff and CoSery Gas Cities sought intervention and were granted party status
in OS-20-00005136; and
WHEREAS, on December 9,2020,the Commission suspended the implementation of the
Company's rate request until June 22, 2021, and CoSery later agreed to extend the jurisdictional
deadline further to August 10, 2021; and
WHEREAS, CoSery filed direct testimony and erratum to its Statement of Intent; and
WHEREAS, CoSery provided public notice by publishing notice of the proposed
increase in a newspaper having general circulation on January 9-10, 2021, January 16-17,
2021, January 23-24, 2021, and January 30-31, 2021, to all affected customers in the form
approved by the ALJ; and
' The CoSery Gas Cities includes the Cities of Allen,Aubrey,Carrollton,Celina,Corinth,Denton,Forney,
Fort Worth, Frisco, Highland Village, Lewisville, Lucas, McKinney, Murphy, Parker, Plano, Providence
Village, The Colony, Wylie and Towns of Argyle, Bartonville, Copper Canyon, Crossroads, Double Oak,
Fairview,Flower Mound,Little Elm,Northlake,Ponder,Prosper, Shady Shores, St.Paul.
z CoSery serves unincorporated areas within Collin,Denton and Kaufman Counties.
Page 1 of 16
WHEREAS, the CoSery Gas Cities, suspended the implementation of the Company's rate
request until April 23, 2021; and
WHEREAS, direct testimony of CoSery Gas Cities was due on April 8, 2021, and Staff
direct testimony was due on April 15, 2021, but CoSery Gas Cities and Staff did not file direct
testimony in reliance on this Settlement Agreement; and
WHEREAS, the parties engaged in significant discovery regarding the issues in dispute;
and
WHEREAS, the Signatories agree that resolution of this docket by unanimous settlement
agreement will significantly reduce the amount of rate case expenses associated with this docket;
and
NOW,THEREFORE,in consideration of the mutual agreements and covenants established
herein, the Signatories, through their undersigned representatives, agree to and recommend
approval by the Commission and the CoSery Gas Cities the following Settlement Terms:
Settlement Terms
1. The Signatories agree to the rates, terms and conditions reflected in the rate schedules
attached to this Settlement Agreement as Exhibit A. The rate schedules attached as Exhibit
A replace and supersede the CoSery rate schedules currently in effect for customers within
unincorporated areas and incorporated municipal boundaries. These rate schedules
represent an increase of $6,250,000 in annual revenues from the Company's proposed
revenue requirement (as updated 6/30/2020). The total revenues are subject to an agreed
credit of $10,325,015 for Excess Accumulated Deferred Income Taxes ("EDIT"), to be
refunded over thirty-eight(38)years (the"EDIT credit"). The rate schedules are premised
on a base rate revenue requirement of $39,162,395, a total revenue requirement of
$40,291,395 before application of the EDIT credit, and a total revenue requirement of
$40,026,602 after applying the EDIT credit, as illustrated in the proof of revenues attached
as Exhibit B to this Settlement Agreement. Except as specifically provided herein, the
Signatories agree that the revenue increase amount is not tied to any specific expense or
methodology in CoServ's underlying cost of service.The Signatories further agree that the
rates, terms and conditions reflected in Exhibit A to this Settlement Agreement comply
with the rate-setting requirements of Chapter 104 of the Texas Utilities Code.The gas rates,
terms and conditions established by this Settlement Agreement shall, subject to approval
of the Commission and the CoSery Gas Cities, be effective for meters read on or after the
effective date of the Final Order.
2. The Signatories agree to the following customer and consumption charges, which are
reflected in the rate schedules attached as Exhibit A. The consumption charges have been
decreased by the amount of the EDIT credit reflected in Item l Ob.
Page 2 of 16
Customer Charge Consumption Charge
(per Cc
Residential $15.00 $0.12097
Commercial&Public Authority $35.00 $0.06479
3. The Signatories agree that the depreciation rates as shown on Exhibit C are reasonable and
necessary.
4. The Signatories agree that the Company's capital investment booked to plant through June
30, 2020, in the net amount of $180,368,138 as shown on Exhibit C is reasonable and
prudent.
a. Any capital investment items not in service by June 30, 2020, are not included in
the above-referenced net plant amount and are preserved for future prudence review
and potential rate recovery once CoSery files a rate-setting mechanism after those
items have been placed into service and have become used and useful.
5. The Signatories agree to the following capital structure and weighted cost of capital,
including the pre-tax return, as shown below:
Capital Debt/Equity Weighted Cost Pre-Tax
Structure Cost of Capital Return
Long-Term Debt 45.91% 4.18% 1.92% 1.92%
Common Equity 54.09% 9.50% 5.14% 6.51%
Rate of Return 100% 7.06% 8.43%
6. The Signatories agree that any Interim Rate Adjustment ("IRA") filing CoSery makes
pursuant to Texas Utilities Code § 104.301 shall use the following factors until changed by
a subsequent general rate proceeding:
a. The capital structure and related components shall be as shown above in Item 5.
b. For the initial IRA filing and for all subsequent IRA filings, the depreciation rate
for each account shall be as shown in Exhibit C.
c. For the initial IRA filing,the beginning balance of net plant in service amount shall
be $180,368,138.
d. For the initial IRA filing, the customer and consumption charges as noted in Item
2 above will be the starting rates to which any IRA adjustment is applied. IRA
increases will be recovered through the customer charge.
e. Federal income taxes will be calculated using a 21%rate, unless the federal income
tax rate is changed, in which case the new rate will be applied.
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f. Ad valorem taxes at a 0.71%rate.
g. Texas Franchise Tax at a 0.50%rate
h. The base rate revenue allocation factors to spread any change in IRA
increase/decrease to the appropriate customer classes are as follows:
Allocation
Residential 94.2%
Commercial and Public Authority 5.8%
Total Allocation 100.0%
7. The Signatories agree that the following customer class allocation, customer counts and
volumes for base rates are reasonable and should be approved.
Allocation Customer Volumes
Count Cc
Residential 94.2% 1,617,096 101,003,816
Commercial and Public Authority 5.8% 35,820 15,313,408
Total Allocation 100.0% 1,652,916 116,317,224
8. On February 27, 2018, the Commission issued an Accounting Order in GUD No. 10695
that reflects the Commission's directives regarding changes to utility rates to account for
the change in the federal corporate income tax rate due to the Federal Tax Cut and Jobs
Act of 2017("Act").The Signatories agree that CoSery has complied with the requirements
in the Accounting Order and that its related filings were reasonable and accurate, subject
to Items 9 and 10.
9. The Signatories agree that the cost of service reflected in Item 1 includes amortization of
CoServ's Excess Accumulated Deferred Income Tax ("EDIT") and that CoSery will
continue to amortize its EDIT, including any associated gross-up in taxes, in compliance
with the Accounting Order in GUD No. 10695 and guidance from the Internal Revenue
Service.
10. The Signatories agree that Rate Schedules EDIT is reasonable and should reflect an EDIT
refund of $10,325,015 to customers within unincorporated areas and incorporated
municipal boundaries for past amortization amounts,which includes the income tax gross-
up component, with the refund to be made as a credit to base rates amortized over 38 years.
The Signatories further agree to and propose the inclusion of the following Findings of
Fact and Ordering Paragraphs in the Final Order in this case:
a. Finding of Fact: It is reasonable that CoSery has an Excess Accumulated Deferred
Income Tax ("EDIT") liability, including associated gross-up for income taxes,
attributable to the Tax Cut and Jobs Act of 2017, which it will continue to amortize
over 38 years in compliance with the Accounting Order in GUD No. 10695 and
guidance from the Internal Revenue Service.
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b. Finding of Fact: It is reasonable that the EDIT refund be applied to bills to
customers within unincorporated and incorporated areas in the following amounts
as a credit to the consumption charge on a volumetric basis per customer:
Residential, $0.00247/Ccf for a total consumption charge of $0.12097/Ccf,
Commercial, $0.001/Ccf for a total consumption charge of $0.06479/Ccf, and
Public Authority, $0.001/Ccf for total consumption charge of$0.06479/Ccf. It is
reasonable that this refund shall be made on a volumetric basis beginning with bills
rendered on or after the effective date of the Final Order.
c. Finding of Fact:It is reasonable that CoSery file an annual EDIT Compliance Filing
with Staff in compliance with Rate Schedules EDIT.
d. Ordering Paragraph: IT IS FURTHER ORDERED that the refund for an EDIT
credit in Finding of Fact No._shall be made to customers beginning in TBD 2021.
e. Ordering Paragraph: IT IS FURTHER ORDERED that CoSery file an EDIT
Compliance Filing with Staff detailing refund of amounts in compliance with Rate
Schedules EDITand as described in Finding of Fact No.
f. Ordering Paragraph: IT IS FURTHER ORDERED that CoSery will continue to
amortize the EDIT liability, including associated gross-up for income taxes,
described in Finding of Fact No. _ in compliance with the Accounting Order in
GUD No. 10695 and guidance from the Internal Revenue Service.
l 1. The Signatories agree it is reasonable for CoSery to maintain its books and records for
ratemaking purposes to thoroughly provide documentation of meal and hotel expenditures,
both capitalized and expenses, in excess of$25 per person per meal and $175 per person
per night, as well as any alcoholic beverage expenditures, both capitalized and expensed.
The Signatories further agree to and propose the inclusion of the following Finding of Fact
and Ordering Paragraph in the Final Order in this case:
a. Finding of Fact: It is reasonable that CoSery maintain its books and records for
ratemaking purposes to thoroughly provide documentation of meal and hotel
expenditures, both capitalized and expenses, in excess of$25 per person per meal
and $175 per person per night,as well as any alcoholic beverage expenditures, both
capitalized and expensed.
b. Ordering Paragraph: IT IS FURTHER ORDERED that CoServ, shall maintain its
books and records for ratemaking purposes to thoroughly provide documentation
of meal and hotel expenditures,both capitalized and expenses in excess, of$25 per
person per meal and $I75 per person per night, as well as any alcoholic beverage
expenditures, both capitalized and expensed.
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12. CoSery and CoSery Gas Cities represent that their reasonable rate case expenses incurred
through April 30, 2021, and estimated rate case expenses incurred through completion of
this case, are as follows:
Regulatory Litigation Invoices Due Total
Expenses Expenses and Est. to Recoverable
Completion Expenses
Total $373,271.13 $214,116.77 $617,387.90 $617,387.90
Recoverable
Expenses
CoSery Gas $27,649.28 $109,646.75 $157,296.03 $157,296.03
Cities
Total $774,683.93
13. CoSery and CoSery Gas Cities attach, as Exhibit D, affidavits and invoices in support of
the rate case expense amounts and will supplement with additional invoices as they are
processed. Signatories agree that the amounts represented above are reasonable and
recoverable pursuant to Texas Utilities Code § 103.022. Signatories agree that the recovery
period for the applicable surcharge to recover rate case expenses shall be a period of
approximately 24 months and that the surcharge shall be volume based in an amount of
$0.00333/Ccf. CoSery agrees to reimburse CoSery Gas Cities the amount of rate case
expenses set forth above within 30 days of the issuance of an order authorizing recovery
of those expenses. CoSery and CoSery Gas Cities shall recover estimated rate case
expenses only to the extent they are actually incurred. The Signatories intend and advocate
that the Commission and cities authorize recovery of the rate case expenses recited above
in the same proceeding and at the same time as they approve this Settlement Agreement.
14. The Signatories agree that equal recovery of rate case expenses on a system-wide basis
from customers within unincorporated areas and incorporated municipalities boundaries is
appropriate and reasonable and that good cause exists to support equal recovery of rate
case expenses from all customers on a system-wide basis for the following reasons:
a. CoSery Litigation and Estimated expenses: Good cause exists to recover CoSery
Litigation and Estimated expenses equally from all customers within
unincorporated areas and incorporated municipal boundaries. The intent of
Commission Rule 7.5530(e) is to allocate rate case expenses to the participating
parties according to which party caused the expenses to be incurred, therefore it is
reasonable to seek recovery of rate case expenses from all customers who benefit
from the settlement agreement in this case, which includes all CoSery customers
within the unincorporated areas and incorporated municipal boundaries CoSery
serves in Texas. Recovery of these expenses is also necessary in the interest of
justice.
b. CoSery Gas Cities Litigation and Estimated expenses: Good cause exists to recover
CoSery Gas Cities Litigation and Estimated expenses equally from all customers,
Page 6 of 16
including customers within the unincorporated areas and incorporated municipal
boundaries CoSery serves in Texas because CoSery Gas Cities' participation in OS-
20-0005136 resulted in this Settlement Agreement, which benefits all such
customers, and doing so is necessary in the interest of justice.
15. CoSery shall file annually, due on or before April 1, a Rate Case Expense Compliance
Filing with the Railroad Commission of Texas, Oversight and Safety Division, Market
Oversight Section, referencing OS-20-0005136. The compliance filing shall include the
volumes used by month by customer class during the applicable period,the amount of rate
case expense recovered by month, and the outstanding balance by month as set out in the
approved Rate Schedule RCE. The Signatories agree to and propose the inclusion of the
following Findings of Fact and Ordering Paragraph in the Final Order in this case:
a. Finding of Fact: It is reasonable that CoSery and CoSery Gas Cities submit to Staff
invoices reflecting actual rate case expenses with sufficient detail so that Staff can
accurately audit such invoices for the purposes of reconciling estimated rate case
expenses to actual rate case expenses. In no case shall the total expenses recovered
exceed the actual expenses submitted to the Commission, plus the approved
estimated expenses.
b. Finding of Fact: It is reasonable that CoSery file an annual Rate Case Expense
Compliance Filing with Staff detailing the balance of actual plus estimated rate case
expenses at the beginning of the annual period, the amount collected by customer
class,and the ending or remaining balance as of December 31 of each year by April
1 of the following year until and including the calendar year end in which the rate
case expenses are fully recovered.
c. Ordering Paragraph: IT IS THEREFORE ORDERED that CoSery file an annual
Rate Case Expense Compliance Filing with Staff detailing recovery of rate case
expenses as described in Finding of Fact No. as of December 31 of each year
by April 1 of the following year until and including the calendar year end in which
the rate case expenses are fully recovered.
16. The Signatories agree to and propose the inclusion of the following Ordering Paragraphs
in the Final Order in this case:
a. Ordering Paragraph: 1T IS FURTHER ORDERED that within thirty (30) days of
this Final Order, in accordance with 16 Tex.Admin.Code § 7.315,CoSery SHALL
electronically file its rate schedules in proper form that accurately reflect the rates
in Exhibit A approved in this Final Order.
b. Ordering Paragraph: IT 1S FURTHER ORDERED that any incremental change in
rates approved by this Final Order and implemented by CoSery shall be subject to
refund unless and until CoServ's tariffs are electronically filed and accepted by the
Gas Services Department in accordance with 16 Tex. Admin. Code § 7.315.
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17. The Signatories agree that CoSery collect the Pipeline Safety and Regulatory Program Fee
surcharge pursuant to 16 Tex. Admin. Code § 8.201 as an annual fee. The Signatories
further agree to and propose the inclusion of the following Findings of Fact and Ordering
Paragraph in the Final Order in this case:
a. Finding of Fact: It is reasonable that CoSery collect the Pipeline Safety and
Regulatory Program Fee surcharge pursuant to 16 Tex. Admin. Code § 8.201 as an
annual fee.
b. Finding of Fact: It is reasonable that CoSery file an annual Pipeline Safety and
Regulatory Program Compliance Filing with Staff no later than ninety (90) days
after the last billing cycle in which the Pipeline Safety and Regulatory Program Fee
is billed to customers.
c. Ordering Paragraph: IT IS FURTHER ORDERED that CoSery file an annual
Pipeline Safety and Regulatory Program Compliance Filing with Staff no later than
ninety (90) days after the last billing cycle in which the Pipeline Safety and
Regulatory Program Fee is billed to customers.
18. The Signatories agree that the Companies provided proper public notice of the Statement
of Intent filing by publishing notice of the proposed increase in a newspaper having general
circulation to all affected customers consistent with the applicable provisions of the Texas
Utilities Code,the Commission's rules, and the orders issued in this case.
19. The Signatories agree that CoSery must file a lead-lag study in its next Statement of Intent
filed with the Commission under its original jurisdiction, and the Commission should
include an Ordering Paragraph to that effect.
20. Relative to CoServ's Operation Roundup, the Signatories agree that CoSery must provide
all new natural gas only customers the option to sign-up to be a part of the Operation
Roundup Program instead of being automatically enrolled into the program. This is to be
implemented within 60 days of the effective date of rates under the Final Order issued in
this case.
21. The Signatories agree to support and seek approval by the Commission and CoSery Gas
Cities of this Settlement Agreement. CoSery agrees to make every effort to present its cities
with this Settlement Agreement at city council meetings that will allow for implementation
of new rates for meters read on or after the effective date of the Final Order.
22. The Signatories agree that all negotiations, discussions, and conferences related to the
Settlement Agreement are privileged, inadmissible, and not relevant to prove any issues
associated with the Statement of Intent filed on November 13, 2020.
23. The Signatories agree that neither this Settlement Agreement nor any oral or written
statements made or documents exchanged or provided during the course of settlement
Page 8 of 16
negotiations may be used for any purpose other than as necessary to support the entry by
the Commission of an order approving this Settlement Agreement.
24. The Signatories agree that the terms of the Settlement Agreement are interdependent and
indivisible, and that if the Commission intends to enter an order that is inconsistent with
this Settlement Agreement, then any Signatory may withdraw without being deemed to
have waived any procedural right or to have taken any substantive position on any fact or
issue by virtue of that Signatory's entry into the Settlement Agreement or its subsequent
withdrawal.
25. The Signatories agree that this Settlement Agreement is binding on each Signatory only
for the purposes of settling the issues set forth herein and for no other purposes,and except
to the extent the Settlement Agreement governs a Signatory's rights and obligations for
future periods, this Settlement Agreement shall not be binding or precedential upon a
Signatory outside this proceeding.
26. No Signatory is under any obligation to take the same positions as set out in this Settlement
Agreement in other cases, dockets or jurisdictions, regardless of whether other cases or
dockets present the same or a different set of circumstances, except as otherwise may be
explicitly provided by this Settlement Agreement. Agreement by the Signatories to any
provision in this Settlement Agreement will not be used against any Signatory in any future
proceeding with respect to different positions that may be taken by that Signatory.
27. The Signatories agree that this Settlement Agreement may be executed in multiple
counterparts and may be filed with facsimile signatures.
[Remainder of page intentionally left blank; signature pages follow]
Page 9 of 16
Agreed to this 14" day of May, 2021.
CoSery Gas, Ltd.
By: /s/John R. Hays, Jr.
John R. Hays, Jr.
Attorney for CoSery Gas, Ltd.
Page 10 of 16
Agreed to this 141h day of May, 2021.
Staff of the Railroad Commission of Texas
By: /s/Natalie Dubiel (with permission)
Natalie Dubiel
Attorney for Staff of the Railroad Commission of Texas
Page 11 of 16
Agreed to this 141 day of May, 2021.
Steering Committee of Cities Served by CoSery Gas, Ltd.
By: /s/Thomas Brocato (with permission)
Attorney for Steering Committee of Cities Served by CoSery Gas, Ltd.
Agreed in principle, subject to approval of the CoSery Gas Cities' City Councils
Page 12 of 16
OS-20-00005136
Exhibit A to Settlement Agreement
Rate Schedules
Exhibit A to Settlement Agreement
Rate Schedules
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule TOC
TABLE OF CONTENTS
Applicable to: Entire System Page I of 2
Effective Date:
Rate
Schedule Description
TOC TABLE OF CONTENTS
UO UTILITY OPERATIONS
SA INCORPORATED AND UNINCORPORATED SERVICE
AREAS AND COUNTIES
DEF DEFINITIONS
Schedules specific to Incorporated Areas
RI RESIDENTIAL INCORPORATED AREAS SALES
Cl COMMERCIAL INCORPORATED AREAS SALES
PI PUBLIC AUTHORITY INCORPORATED AREAS SALES
ITF INCORPORATED AREAS TAX FACTORS
LEI LINE EXTENSION POLICY— INCORPORATED AREAS
Schedules specific to Unincorporated Areas
RU RESIDENTIAL UNINCORPORATED AREAS SALES
CU COMMERCIAL UNINCORPORATED AREAS SALES
PU PUBLIC AUTHORITY UNINCORPORATED AREAS SALES
UTF UNINCORPORATED AREAS TAX FACTORS
LEU LINE EXTENSION POLICY— UNINCORPORATED AREAS
Schedules applicable to all areas
PGF PURCHASED GAS FACTOR
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule TOC
TABLE OF CONTENTS
Applicable to: Entire System Page 2 of 2
Effective Date:
PSF PIPELINE SAFETY FEE
RCE RATE CASE EXPENSES
WNA WEATHER NORMALIZATION ADJUSTMENT
EDIT EXCESS DEFERRED INCOME TAX CREDIT
M MISCELLANEOUS SERVICE CHARGES
Q QUALITY OF SERVICE
CP CURTAILMENT POLICY
DEP CUSTOMER DEPOSITS
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule UO
UTILITY OPERATIONS
Applicable to: Entire System Page 1 of 1
Effective Date:
CoSery Gas, Ltd. owns and operates a natural gas distribution system that provides natural gas
service in Texas.
The following will respond to inquiries regarding provisions of this Tariff for Gas Service:
Tariff Coordinator
CoSery Gas,Ltd.
7701 South Stemmons
Corinth,Texas 76210
Telephone: (940) 321-7800
Email Address: tarifNbcoserv.com
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule SA
INCORPORATED AND UNINCORPORATED SERVICE AREAS AND COUNTIES
Applicable to: Entire System Page 1 of 1
Effective Date:
INCORPORATED SERVICE AREAS UNINCORPORATED SERVICE AREAS
Allen Allen environs
Argyle Argyle environs
Aubrey Aubrey environs
Bartonville Bartonville environs
Carrollton
Celina Celina environs
Copper Canyon
Corinth
Crossroads Crossroads environs
Denton Denton environs
Double Oak
Fairview
Flower Mound
Forney Forney environs
Fort Worth Fort Worth environs
Frisco Frisco environs
Highland Village
Little Elm Little Elm environs
Lewisville Lewisville environs
Lucas Lucas environs
McKinney McKinney environs
Murphy
Northlake
Parker Parker environs
Plano
Ponder
Prosper Prosper environs
Providence Village
St.Paul St.Paul environs
Shady Shores
The Colony
Wylie Wylie environs
COUNTIES UNINCORPORATED MASTER PLAN COMMUNITIES
Denton Denton County Fresh Water District IA(Castle Hills)
Denton Denton County Fresh Water District 7(Lantana)
Kaufman Kaufman County Development District(Windmill Farms)
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule DEF
DEFINITIONS
Applicable to: Entire System Page l of l
Effective Date:
COMMERCIAL CUSTOMER—A customer, other than a residential customer, and not
otherwise covered by a contract under the contract rate provisions of Section 104.003 of the
Texas Utilities Code.
COMMISSION - The Railroad Commission of Texas.
COMPANY - CoSery Gas, Ltd., its successors, and its assigns.
CUSTOMER- An individual,family, partnership, association,joint venture, corporation, etc., or
governmental agency who is receiving or who is receiving the benefit of gas service at a specified
point of delivery.
ENVIRONS—The unincorporated areas outside the city limits in the Company's service area.
RATE SCHEDULE -A statement of the method of determining charges for gas service,including
the conditions under which such method applies.
RESIDENTIAL CUSTOMER - Unless otherwise specified in the rate schedule, a customer
whose service is separately and individually metered in an individual private dwelling unit or in
an individually metered apartment, condominium, or similar dwelling and who uses natural gas
primarily for Residential End Uses and occupies the building.
RESIDENTIAL END USES - Heating, space heating, cooking, water heating, and other similar
type uses in a dwelling.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule RI
RESIDENTIAL INCORPORATED AREAS SALES
Applicable to: Residential customers in unincorporated areas Page 1 of 1
Effective Date:
Application of Schedule
Schedule applies to all Residential Customers in incorporated areas.
Monthly Base Rate
Customer's base monthly bill will be calculated using the following Customer and Ccf charges:
Charge Amount
Customer Charge $15.00 per month, plus
Volumetric Charge $0.12097 per Ccf
Other Fees and Credits
Purchased Gas Factor: The basic rates for cost of service set forth above shall be increased by the
amount of the Purchased Gas Factor for the billing month computed in accordance with the
provisions of Rate Schedule PGF—Purchased Gas Factor.
Rate Case Expenses: Plus applicable charge in accordance with provisions of Rate Schedule RCE
—Rate Case Expenses.
Taxes: Plus applicable taxes and fees related to above in accordance with the provisions of Rate
Schedule ITF—Incorporated Areas Tax Factors.
Pipeline Safety Fee: Plus applicable charge in accordance with the provisions of Rate Schedule
PSF—Pipeline Safety Fee.
Excess Deferred Income Tax Credit: Credit to Volumetric Charge has been applied in accordance
with provisions of Rate Schedule EDIT—Excess Deferred Income Tax Credit.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule CI
COMMERCIAL INCORPORATED AREAS SALES
Applicable to: Commercial customers in incorporated areas Page 1 of 1
Effective Date:
Application of Schedule
Schedule applies to commercial customers in incorporated areas.
Monthly Base Rate
Customer's base monthly bill will be calculated using the following customer and Ccf charges:
Charge Amount
Customer Charge $35.00 per month, plus
Volumetric Charge $0.06479 per Ccf
Other Fees and Credits
Purchased Gas Factor: The basic rates for cost of service set forth above shall be increased by the
amount of the Purchased Gas Factor for the billing month computed in accordance with the
provisions of Rate Schedule PGF—Purchased Gas Factor.
Rate Case Expenses: Plus applicable charge in accordance with provisions of Rate Schedule RCE
— Rate Case Expenses.
Taxes: Plus applicable taxes and fees related to above in accordance with the provisions of Rate
Schedule ITF— Incorporated Areas Tax Factors.
Pipeline Safety Fee: Plus applicable charge in accordance with the provisions of Rate Schedule
PSF— Pipeline Safety Fee.
Excess Deferred Income Tax Credit: Credit to Volumetric Charge has been applied in accordance
with provisions of Rate Schedule EDIT—Excess Deferred Income Tax Credit.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule PI
PUBLIC AUTHORITY INCORPORATED AREAS SALES
Applicable to: Public authority customers in unincorporated areas Page 1 of 1
Effective Date:
Application of Schedule
Schedule applies to public authority customers in unincorporated areas.
Monthly Base Rate
Customer's base monthly bill will be calculated using the following customer and Ccf charges:
Charge Amount
Customer Charge $35.00 per month, plus
Volumetric Charge $0.06479 per Ccf
Other Fees and Credits
Purchased Gas Factor: The basic rates for cost of service set forth above shall be increased by the
amount of the Purchased Gas Factor for the billing month computed in accordance with the
provisions of Rate Schedule PGF—Purchased Gas Factor.
Rate Case Expenses: Plus applicable charge in accordance with provisions of Rate Schedule RCE
—Rate Case Expenses.
Taxes: Plus applicable taxes and fees related to above in accordance with the provisions of Rate
Schedule ITF—Incorporated Areas Tax Factors.
Pipeline Safety Fee: Plus applicable charge in accordance with the provisions of Rate Schedule
PSF— Pipeline Safety Fee.
Excess Deferred Income Tax Credit: Credit to Volumetric Charge has been applied in accordance
with provisions of Rate Schedule EDIT—Excess Deferred Income Tax Credit.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule ITF
INCORPORATED AREAS TAX FACTORS
Applicable to: Entire System Page l of l
Effective Date:
Taxes
In addition to the monthly charges, each customer's bill will include a charge for an amount
equivalent to the customer's proportional part of the city franchise fees, state gross receipts taxes,
or other governmental levies payable by the Company, exclusive of federal income taxes.
Municipal franchise fees are determined by each municipality's franchise ordinance. Each
municipality's franchise ordinance will specify the percentage and applicability of franchise fees.
From time to time, the tax factor may be adjusted, if required, to account for any over- or under-
recovery of municipal franchise fees by the Company and to include an amount equivalent to the
proportionate part of any new tax or increased franchise fee or tax, or any other governmental
imposition, rental fee, or charge levied, assessed or imposed subsequent to the effective date of
this tariff by any governmental authority,including districts,created under the laws of the State of
Texas. The Company will also collect sales taxes where applicable. Gross receipts taxes and
municipal franchise fees will only be charged to customers within the incorporated areas.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule LEI
LINE EXTENSION POLICY—INCORPORATED AREAS
Applicable to: Entire System Page 1 of 1
Effective Date:
Line Extension Policy
The Company has the right to contract with individual customers for the installation of gas
facilities as provided for by the city franchise. Upon the request of a prospective new residential
or commercial customer for service in an area served by CoSery Gas, CoSery Gas will extend its
main lines up to 100 feet from an existing CoSery Gas main in the Public Rights of Way, without
charge. The 100-foot allowance applies to a single customer or to a group of customers requesting
service from the same extension. Customers requesting mainline extensions in excess of 100 feet
shall bear the cost of any additional main, and shall bear the cost of all yard lines, service lines,
customer meters and regulators,and appurtenant equipment, in accordance with the charges listed
in item 11, Line Extension and Installation, of Rate Schedule M, Miscellaneous Service Charges.
CoSery Gas is not required to extend its mains or facilities if the customer will not use gas for
space heating and water heating, or the equivalent load, at a minimum.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule RU
RESIDENTIAL UNINCORPORATED AREAS SALES
Applicable to: Residential customers in unincorporated areas Page 1 of 1
Effective Date:
Application of Schedule
Schedule applies to all Residential Customers in unincorporated areas.
Monthly Base Rate
Customer's base monthly bill will be calculated using the following Customer and Ccf charges:
Charge Amount
Customer Charge $15.00 per month, plus
Volumetric Charge $0.12097 per Ccf
Other Fees and Credits
Purchased Gas Factor: The basic rates for cost of service set forth above shall be increased by the
amount of the Purchased Gas Factor for the billing month computed in accordance with the
provisions of Rate Schedule PGF—Purchased Gas Factor.
Rate Case Expenses: Plus applicable charge in accordance with provisions of Rate Schedule RCE
—Rate Case Expenses.
Taxes: Plus applicable taxes and fees related to above in accordance with the provisions of Rate
Schedule UTF— Unincorporated Areas Tax Factors.
Pipeline Safety Fee: Plus applicable charge in accordance with the provisions of Rate Schedule
PSF— Pipeline Safety Fee.
Excess Deferred Income Tax Credit: Credit to Volumetric Charge has been applied in accordance
with provisions of Rate Schedule EDIT—Excess Deferred Income Tax Credit.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule CU
COMMERCIAL UNINCORPORATED AREAS SALES
Applicable to: Commercial customers in unincorporated areas Page 1 of 1
Effective Date:
Application of Schedule
Schedule applies to commercial customers in unincorporated areas.
Monthly Base Rate
Customer's base monthly bill will be calculated using the following customer and Ccf charges:
Charge Amount
Customer Charge $35.00 per month, plus
Volumetric Charge $0.06479 per Ccf
Other Fees and Credits
Purchased Gas Factor: The basic rates for cost of service set forth above shall be increased by the
amount of the Purchased Gas Factor for the billing month computed in accordance with the
provisions of Rate Schedule PGF—Purchased Gas Factor.
Rate Case Expenses: Plus applicable charge in accordance with provisions of Rate Schedule RCE
—Rate Case Expenses.
Taxes: Plus applicable taxes and fees related to above in accordance with the provisions of Rate
Schedule UTF— Unincorporated Areas Tax Factors.
Pipeline Safety Fee: Plus applicable charge in accordance with the provisions of Rate Schedule
PSF—Pipeline Safety Fee.
Excess Deferred Income Tax Credit: Credit to Volumetric Charge has been applied in accordance
with provisions of Rate Schedule EDIT—Excess Deferred Income Tax Credit.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule PU
PUBLIC AUTHORITY UNINCORPORATED AREAS SALES
Applicable to: Public authority customers in unincorporated areas Page l of l
Effective Date:
Application of Schedule
Schedule applies to public authority customers in unincorporated areas.
Monthly Base Rate
Customer's base monthly bill will be calculated using the following customer and Ccf charges:
Charge Amount
Customer Charge $35.00 per month, plus
Volumetric Charge $0.06479 per Ccf
Other Fees and Credits
Purchased Gas Factor: The basic rates for cost of service set forth above shall be increased by the
amount of the Purchased Gas Factor for the billing month computed in accordance with the
provisions of Rate Schedule PGF—Purchased Gas Factor.
Rate Case Expenses: Plus applicable charge in accordance with provisions of the Rate Schedule
RCE— Rate Case Expenses.
Taxes: Plus applicable taxes and fees related to above in accordance with the provisions of Rate
Schedule. UTF—Unincorporated Areas Tax Factors.
Pipeline Safety Fee: Plus applicable charge in accordance with the provisions of Rate Schedule
PSF— Pipeline Safety Fee.
Excess Deferred Income Tax Credit: Credit to Volumetric Charge has been applied in accordance
with provisions of Rate Schedule EDIT—Excess Deferred Income Tax Credit.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule UTF
UNINCORPORATED AREAS TAX FACTORS
Applicable to: Unincorporated areas Page 1 of 1
Effective Date:
Taxes
Environs Area Fee Entity Collecting Fee
Frisco, Denton Co. 4%of gross receipts Denton Co. Fresh Water Supply
Dist.No. 8A, 8B, 9, 10, 11 A, and
1IB
Lantana Subdiv., 3%of gross receipts Denton Co. Fresh Water Supply
Denton Co. Dists.No. 6 and 7
Windmill Farms Subdiv., 4%of gross receipts Kaufman Co. Dev. Dist. No. 1
Kaufman Co.
In addition to the monthly charges above, each customer's bill in the above referenced areas will
include a charge for an amount equivalent to the customer's proportional part of any taxes, fees,
or similar levies payable by the Company to governmental or quasi-governmental entities with
authority over the area in which the customer resides. Any such charge will be computed by
multiplying the Monthly Base Rate charges and Purchased Gas Factor charges by a factor
calculated to recover the actual amount of such taxes, fees, or similar levies.
Currently applicable taxes, fees, or similar levies for each unincorporated area are detailed on the
CoSery Rate Schedule UTF—Unincorporated Areas Tax Factors.
CoSery does not charge municipal franchise fees to unincorporated area customers.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule LEU
LINE EXTENSION POLICY—UNINCORPORATED AREAS
Applicable to: Entire System Page 1 of 1
Effective Date:
Line Extension Policy
The Company has the right to contract with individual customers for the installation of gas
facilities as provided for by the city franchise. Upon the request of a prospective new residential
or commercial customer for service in an area served by CoSery Gas, CoSery Gas will extend its
main lines up to 100 feet from an existing CoSery Gas main in the Public Rights of Way, without
charge. The 100-foot allowance applies to a single customer or to a group of customers requesting
service from the same extension. Customers requesting mainline extensions in excess of 100 feet
shall bear the cost of any additional main, and shall bear the cost of all yard lines, service lines,
customer meters and regulators,and appurtenant equipment, in accordance with the charges listed
in item 11, Line Extension and Installation, of Rate Schedule M, Miscellaneous Service Charges.
CoSery Gas is not required to extend its mains or facilities if the customer will not use gas for
space heating and water heating, or the equivalent load, at a minimum.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule PGF
PURCHASED GAS FACTOR
Applicable to: Entire System Page 1 of 6
Effective Date:
Purpose and Intent
This provision is intended to allow collection of the gas purchase costs of CoSery Gas, Ltd.
(hereinafter"CoSery Gas"or the"Company") in a manner that will lessen monthly fluctuations in
the Purchased Gas Factor and ensure that actual costs billed to customers are fully reconciled with
actual costs incurred, subject to limitations for excessive lost and unaccounted for gas. The billing
methods set forth herein are intended to be followed to the extent the goals are realized. To the
extent the billing methods fail to achieve these goals, the methodology shall be revised, and a
revised tariff filed to reflect such revisions. The Company will make appropriate regulatory filings
and obtain regulatory approvals, as required, before making changes to its rates. The Company
will notify the Railroad Commission within 10 days of the date its policies and procedures for
recovering the uncollectable portion of its gas cost charges.
Applicability
This clause shall apply to all CoSery Gas tariffs that incorporate this Purchased Gas Factor
provision and which have been properly filed and implemented with the appropriate jurisdictional
authority.
Definitions
Standard Cubic Foot of Gas — the amount of gas contained in one (1) cubic foot of space at a
standard pressure of fourteen and sixty-five hundredths (14.65) pounds per square inch, absolute
and a standard temperature of sixty (60) degrees Fahrenheit.
Ccf—one hundred standard cubic feet of gas.
Mcf—one thousand standard cubic feet of gas.
Purchased Gas Volumes — The volumes of gas, expressed in Mcf s, purchased by the Company
and received into the Company's distribution systems from all sources, including withdrawals
from storage, and excluding gas injected into storage.
Purchased Gas Cost(s)—The total cost of Purchased Gas Volumes,as received into the Company's
distribution systems, all as more specifically described herein.
Weighted Average Cost of Gas—The Purchased Gas Costs divided by the Purchased Gas Volumes,
calculated on a monthly basis, and expressed as dollars per Mcf. Weighting us by the volume of
each gas component.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule PGF
PURCHASED GAS FACTOR
Applicable to: Entire System Page 2 of 6
Effective Date:
Billed Gas Volumes—The volumes of gas billed to customers, plus volumes of gas billed to third
parties following losses or damages, expressed in Mcf's
Billed Gas Revenues — The total amount of revenues attributable to billings by CoSery for
Purchased Gas Costs during a given period,exclusive of any billings for any Reconciliation Factor
during the same period.
Lost and Unaccounted for Gas (LUG) — Purchased Gas Volumes minus the sum of Billed Gas
Volumes and metered Company used gas.
Purchased Gas Factor(PGF)—A factor on each customer's monthly bill, expressed in dollars per
Ccf, to reflect the Purchase Gas Costs and the Reconciliation Factor, all as more specifically
described herein.
Fixed Transportation Costs (FTC)—The fixed monthly or demand amount of transportation costs
determined by a Maximum Daily Quantity (MDQ) or such other similarly named fixed costs for
transportation.
Estimated Fixed Transportation Costs (EFTC) — The anticipated FTC to be incurred during the
Annual Review period.
Annual Fixed Transportation Costs (AFTC)—The actual FTC incurred during the Annual Review
Period.
Annual Review Period—The 12-month period ending June 30 of each year.
Annual Review — An annual review of the Company's records covering the 12-month period
ending June 30 to determine LUG volumes and any imbalances between the Purchased Gas Costs
and Billed Gas Revenues existing at the end of the Annual Review Period.
Annual Imbalance Total—The total amount determined through the Annual Review to be credited
or surcharged to customers' bills,plus interest,in order to balance Purchased Gas Costs with Billed
Gas Revenues.
Reconciliation Factor—A credit or surcharge included in the Purchased Gas Factor to reflect the
pro-rated adjustment in billings for any over or under collections on an annual basis, inclusive of
interest.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule PGF
PURCHASED GAS FACTOR
Applicable to: Entire System Page 3 of 6
Effective Date:
Record Keeping
The Company shall keep accurate records of all gas metered in and out of its system,gas purchases,
and Company-owned gas injected into and withdrawn from storage, and any adjustments,
including interest, relative to any imbalances. The records shall include date, quantity, and cost
details for all gas handled.
Purchased Gas Cost Calculation
The Purchased Gas Cost shall be determined for each month to fairly and accurately reflect the
cost to the Company at the points of delivery into the Company's distribution systems. The
determination shall include, but not be limited to, volumetric and demand charges for Purchased
Gas Volumes, fees paid to others where such fees are integrally tied to the purchase or
transportation of gas purchased by CoServ,pipeline transportation volumetric charges,gas storage
charges (both volumetric and demand), and an adjustment for any gas imbalances due to or from
the shipper.
Fixed Transportation Costs will be estimated for the year (EFTC). The EFTC will be divided by
the estimated annual volume of gas to be delivered to determine the FTC rate per Mcf. This rate
will be applied monthly to the anticipated gas volume for a particular month and will be included
in the PGF. The EFTC will be updated for the remainder of the Annual Review Period and a new
rate will be determined and used for calculating the PGF during the remaining months of the
Annual Review Period. A running over or under collected balance will be maintained and an
interest will be added to or subtracted from the over/under balance as appropriate. Any remaining
balance in the over/under account will be added to or subtracted from the EFTC for the subsequent
Annual Review Period.
The Company shall account separately for gas injected into storage on a specific identification
basis and withdrawn from storage on a weighted average cost basis.
Purchased Gas Factor Calculation
Each customer bill shall include a Purchased Gas Factor reflecting the estimated Weighted
Average Cost of Gas for the period covered by the bill,which estimate shall include,as applicable,
a pro-rata amount to adjust for previous over- or under-estimates of the Weighted Average Cost
of Gas; plus the total amount of gas cost determined to have been uncollectible, written off, and
remaining unpaid; plus a Reconciliation Factor to account for any Annual Imbalance Total.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule PGF
PURCHASED GAS FACTOR
Applicable to: Entire System Page 4 of 6
Effective Date:
Annual Review
For each Annual Review Period, the Company shall determine (i) the amount of any imbalance
between the Purchased Gas Costs and Billed Gas Revenues, and (ii) the LUG volume for the
Annual Review Period. As limited by the LUG volume limitation set forth below, the Annual
Imbalance Total shall then be credited or surcharged,together with interest,to the customers' bills
over a twelve-month period commencing each September I following the Annual Review Period.
Annual Imbalance Total -- LUG Volume less than five percent of Purchased Gas Volumes
or LUG Volume is negative
If the Annual Review shows the LUG volume for the Annual Review Period to be less than five
percent of the Purchased Gas Volumes, or if the LUG volume is negative (indicating a line gain),
the Annual Imbalance Total shall be the difference between the total Purchased Gas Cost and the
total Billed Gas Revenues for the Annual Review Period.
Annual Imbalance Total — LUG Volume is positive and is greater than five percent of
Purchased Gas Volumes
If the Annual Review shows the LUG volume for the Annual Review Period to be positive and to
be greater than five percent of the Purchased Gas Volumes, the Annual Imbalance Total shall be
determined as follows:
• The difference between the total Purchased Gas Costs and the total Billed Gas Revenues
for the Annual Review Period shall be determined;
• Minus, the Purchased Gas Costs attributable to LUG volumes in excess of 5% of the
Purchase Gas Volumes, using the Company's Weighted Average Cost of Purchased Gas
for the Review Period.
Reconciliation Factor Calculation
The Annual Imbalance Total (whether positive or negative) shall be credited or surcharged over
twelve months in equal total amounts per month, together with interest on the declining
unrecovered or uncredited balance. The recovery shall be through a Reconciliation Factor
included in the Purchased Gas Factor. The Reconciliation Factor for each month shall be
determined as follows:
• The total interest to be collected or paid shall be computed by using a monthly interest
factor equal to the annual interest rate divided by I2. The annual interest rate shall be the
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule PGF
PURCHASED GAS FACTOR
Applicable to: Entire System Page 5 of 6
Effective Date:
interest rate established pursuant to Section 183.003 of the Texas Utilities Code, as
applicable to customer deposits, if any, of customers covered by this tariff, as such rate is
in effect during the last month of the Annual Review Period.
• The total interest to be collected or paid over the 12-month period shall be added to the
Annual Imbalance Total.
• The resulting total shall then be divided by 12 to determine the total amount to be credited
or surcharged each month.
• Each month of the twelve-month reconciliation period, the Reconciliation Factor,
expressed in Ccfs, shall be calculated by dividing the sum of amount to be credited or
surcharged during that month (which amount shall include, as necessary, an amount to
correct for any previous over- or under-estimates of Billed Gas Volumes during the
previous month or months in the same reconciliation period), by the estimated Billed Gas
Volumes for the month.
• At the end of each 12-month period, any remaining balance in the Annual Imbalance Total
shall be included in any Annual Imbalance Total to be credited or surcharged during the
successor 12-month period.
Annual Reconciliation Report
The Company shall file an Annual Reconciliation Report with the Regulatory Authority that shall
include but not necessarily be limited to:
1. A tabulation of volumes of gas purchased and costs incurred listed by account or
type of gas, supplier and source by month for the twelve months ending June 30;
2. A tabulation of the uncollectible gas cost by month for the twelve months ending
June 30;
3. A description of all other costs and refunds made during the year and their effect
on Rate Schedule PGF—Purchased Gas Factor to date;
4. A tabulation of gas units sold to general service customers and related Rate
Schedule PGF - Purchased Gas Factor revenues; and,
5. A description of the imbalance payments made to and received from the Company's
transportation customers within the service area, including monthly imbalances
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule PGF
PURCHASED GAS FACTOR
Applicable to: Entire System Page 6 of 6
Effective Date:
incurred, the monthly imbalances resolved, and the amount of cumulative
imbalances. The description should reflect the system imbalance and imbalance
amount for each supplier using the Company's distribution system during the
reconciliation period.
6. The Annual Reconciliation Report prepared for the Railroad Commission shall be
sent to the Audit Section of the Gas Services Division and shall also include
uncollected expenses,uncollected margin,uncollected gas costs,uncollected taxes,
subsequent collected gas costs and subsequent collected margin.
The Company shall maintain detailed information that will allow the Regulatory Authority to audit
the operation of the uncollectible gas cost recovery process.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd
Rate Schedule PSF
PIPELINE SAFETY FEE
Applicable to: Entire System Page 1 of 1
Effective Date:
Application of Schedule
Applicable to all customer classes.
Monthly Calculation
Company will charge a surcharge to recover pipeline safety fees assessed by the Commission
pursuant to Section 121.211 of the Texas Utilities Code and Commission Rule 16 TAC § 8.201.
The surcharge will be charged not more often than once a year and will be billed following
payment by the Company to the Commission, in accordance with the Commission's rules.
Compliance Report
The Company shall file an annual pipeline safety fee (PSF) report no later than 90 days after the
last billing cycle in which the pipeline safety fee surcharge is billed to customers. The Company
shall file the report with the Railroad Commission of Texas addressed to the Director of Oversight
and Safety Division,Gas Services Department,referencing OS-20-00005136,and titling the report
"Pipeline Safety Fee Recovery Report". The report shall include the following:
a) the pipeline safety fee-amount paid to the Commission;
b)the unit rate for each customer;
c)the date or dates the surcharge was billed to customers; and
d)the total amount billed to customers for the surcharge.
Reports for the Commission should be filed electronically at GUD_Compliance@rrc.texas.gov or
at the following address:
Compliance Filing
Director of Oversight and Safety Division
Gas Services Dept.
Railroad Commission of Texas
P.O. Box 12967
Austin, TX 78711-2967
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule RCE
RATE CASE EXPENSES
Applicable to: Entire System Page 1 of 1
Effective Date:
Application of Schedule
Applicable to residential, commercial, and public authority customer classes.
Monthly Surcharge
Pursuant to the Final Order in OS-20-00005136, CoSery is authorized to recover a total of
$774,683.93 in rate case expenses from OS-20-00005 1 3 6 customers identified above by a
surcharge of$0.00333 per Ccf for a period of approximately 24 months commencing TBD 2021.
Compliance Report
The Company shall file an annual rate case expense reconciliation report within 90 days after each
calendar year end until and including the calendar year end in which the rate case expenses are
fully recovered. The Company shall file the report with the Railroad Commission of Texas
addressed to the Director of Oversight and Safety Division, Gas Services Department and
referencing OS-20-00005136 Rate Case Expense Recovery Report.
The report shall detail the monthly collections for RCE surcharge by customer class and show the
outstanding balance. Reports to the Commission should be filed electronically at
GUD_Compliance@rrc.texas.gov or at the following address:
Compliance Filing
Director of Oversight and Safety Division
Gas Services Dept.
Railroad Commission of Texas
P.O. Box 12967
Austin, TX 78711-2967
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule WNA
WEATHER NORMALIZATION ADJUSTMENT
Applicable to: Entire System Page 1 of 3
Effective Date:
Application of Schedule
Applicable to residential, commercial and public authority customers.
Purpose and Intent
This provision is intended to account for the effects of abnormal temperatures on both customers
and the Company. Under this provision customers will receive a credit when the temperature is
colder than normal or will be surcharged when the temperature is warmer than normal. The billing
methods set forth herein are intended to be followed to the extent the goals are realized. To the
extent the billing methods fail to achieve these goals, the methodology shall be revised so that the
goals are achieved, subject to review by the Gas Services Division of the Railroad Commission of
Texas.
Applicability
This tariff shall be applicable for the months of November through April of each year. The WNA
charge shall be reflected on the monthly bills rendered to customers in the months of December
through May to account for the variation in gas consumption due to the variation in temperatures
from normal during the November through April period. The WNA charge billed for a month will
be based on Heating Degree Day parameters for the previous month, actual number of customers
for the previous month, and estimated rate class Ccf consumption for the current month.
Definitions
Ccf—One hundred standard cubic feet of gas
HDD—Heating Degree Days
HDDn — Normal heating degree days for the previous month based on normal determined by
NOAA for the Dallas Fort Worth International Airport(KDFW weather station)
HDDa—Actual heating degree days for the previous month
HL— Is a factor for heat load per HDD for the test year. The factor is 0.100 12 for residential
customers, 0.457193 for commercial customers and 1.385462 for public authority customers
C —Number of customers in the customer class at the end of the previous month.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule WNA
WEATHER NORMALIZATION ADJUSTMENT
Applicable to: Entire System Page 2 of 3
Effective Date:
WNV—Weather Normalization Volume calculated by customer class using the following formula:
WNV=C * (HL*(HDDn—HDDa))
BMVe—The estimate of the volume of natural gas for the current month to be consumed by each
customer class.
WNAf—Weather Normalization Adjustment factor
VC—The Volumetric Charge in effect for the appropriate customer class.
RF — The Reconciliation Factor is an adjustment to be applied to the current monthly billing to
account for differences in WNA revenues calculated using actual, final billing and HDD
parameters for previous periods and the WNA revenues actually recovered in previous periods.
Any remaining RF balance after the May billing will be included in the next December billing.
WNA Calculation
The amount to be billed or credited to each customer in a customer class will be determined as
follows:
WNAf=((WNV * VC)f RF)/BMVe
The customer will be charged or credited as follows:
WNA= Customer's Actual Ccf Consumption X WNAf
Monthly Report
By the 251h day of the month following the month in which a given WNA is billed or credited,the
Company will file with the Regulatory Authority a report showing the volume adjustments and
WNA revenues for each applicable customer class. Supporting documentation will be made
available for review upon request.
Annual Report
An annual report shall be filed with the regulatory authority for each five-month period beginning
with November and ending the subsequent April by customer class. The report shall provide: (a)
the total amount of volumetric revenues collected from customers including WNA revenues, (b)
the Base Load revenues collected from customers using the Base Load per customer during the
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule WNA
WEATHER NORMALIZATION ADJUSTMENT
Applicable to: Entire System Page 3 of 3
Effective Date:
period, (c)the difference between the volumetric revenues collected from customers and the Base
Load, which represents the weather sensitive revenues billed, and (d) the calculated WNA
revenues determined by the operation of the provisions of this weather normalization adjustment
clause.
Compliance Report
The Company shall file with the Commission an annual report verifying the past year's WNA
collections or refunds. The report shall show the amount collected or refunded by WNA month,
total monthly volume,average WNA rate,average bill impact,percent bill impact and itemized by
service area.
The Company shall file the report with the Commission electronically at
GUD_Compliance@rrc.texas.gov or at the following address:
WNA Tariff Filing
Director of Oversight and Safety Division
Gas Services Department
Railroad Commission of Texas
P.O. Box 12967
Austin,TX 78711-2967
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule EDIT
EXCESS DEFERRED INCOME TAX CREDIT
Applicable to: Entire System Page ] of 2
Effective Date:
Application of Schedule
This Excess Deferred Income Tax Credit applies to all general service rate schedules of
CoSery Gas, Ltd. ("Company")currently in force within the incorporated and unincorporated
areas of Collin, Denton, and Kaufman Counties.
Calculation of Credit
The annual amortization of the regulatory liability for excess deferred income taxes resulting
from the Tax Cuts and Jobs Act of 2017 and in compliance with GUD No. 10695, will be
credited to customers monthly on avolumetric basis until fully amortized. The initial credit
will occur in 12021.
EDIT CREDIT—The total amount, if any, of the credit in a given year will be determined by:
• The average rate assumption method("ARAM")as required by the Tax Cuts and Jobs
Act of 2017 Section 13001(d) for the protected portion of the regulatory liability for
excess deferred income taxes,which results in an amortization over approximately 38
years.
TRUE-UP ADJUSTMENT — The Excess Deferred Income Tax credit shall be trued-up in
CoServ's next rate case. The True-Up Adjustment will be the difference between the amount
of the EDIT Credit and the amount actually credited to customers.
EDIT Credit per Ccf
Residential: $0.00247
Commercial: $0.00100
Public Authority: $0.00100
Other Adjustments
Taxes: Plus applicable taxes and fees (including franchise fees) related to above.
Compliance Filing
The Company shall make a filing with the Commission no later than March 31 of each year,
including the following information for the previous calendar year:
a. the total dollar amount of that year's EDIT Credit;
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule EDIT
EXCESS DEFERRED INCOME TAX CREDIT
Applicable to: Entire System Page 2 of 2
Effective Date:
b. the total dollar amount actually credited to customers;
c. the amount of the upcoming year's EDIT Credit; and
d. the amounts of the upcoming year's EDIT Credit per Customer.
Conditions
Subject to all applicable laws and orders,and the Company's rules and regulations on file with
the regulatory authority.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule M
MISCELLANEOUS SERVICE CHARGES
Applicable to: Entire System Page 1 of 4
Effective Date:
Application of Schedule
The service charges listed below are in addition to any other charges under the Company's Tariff
for Gas Service and will be applied for the condition described. Other services not covered by
these standard conditions will be charged on the basis of an estimate for the job or the Company's
actual cost plus appropriate surcharges.
Applicable Charges
Service
Charge Name and Description Amount of
Charge
No.
Connection Charge During Business Hours
During standard business hours, for each reconnection of gas service
where service has been discontinued at the same premises for any
reason, for the initial inauguration of service, and for each
inauguration of service when the billable party has changed,with the
following exceptions:
(a) For a builder who uses gas temporarily during construction
or for display purposes.
(b) Whenever gas service has been temporarily interrupted
1 because of System outage or service work done by Company; $ 65.00
or
(c) For any reason deemed necessary for Company operations.
The charge will also apply in the event that the connection or
reconnection cannot be made because there is an issue on the
builder's or customer's premises, including the inability for
CoSery to gain access to the premises, failure of the
appliances to meet required specifications, a leak in the
piping, or the like.
This will be identified as a Failed Connect Attempt.
Connection Charge After Business Hours
After standard business hours, for each reconnection of gas service
where service has been discontinued at the same premises for any
reason, for the initial inauguration of service, and for each
2 inauguration of service when the billable party has changed,with the $ 97.00
following exceptions:
(a) For a builder who uses gas temporarily during construction or
for display purposes.
b Whenever gas service has been temporarily interrupted
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule M
MISCELLANEOUS SERVICE CHARGES
Applicable to: Entire System Page 2 of 4
Effective Date:
Service
Charge Name and Description Amount of
Charge
No.
because of System outage or service work done by Company;
or
(c) For any reason deemed necessary for Company operations.
The charge will also apply in the event that the connection or
2 reconnection cannot be made because there is an issue on the
builder's or customer's premises, including the inability for
CoSery to gain access to the premises,failure of the appliances
to meet required specifications,a leak in the piping,or the like.
This will be identified as a Failed Connect Attempt.
Field Read of Meter
3 A read for change charge when it is necessary for the Company to $ 19.00
read the meter at a currently served location because of a change in
the billable party.
Returned Check Charges
4 Returned check handling charge for each check returned to Company $ 20.00
for any reason.
Charge for Temporary Discontinuance of Service-Residential
Whenever service has been temporarily disconnected at the request
5 of the customer, this charge plus the appropriate Connection Charge $ 65.00
will be made to reestablish such service for that customer at the same
address.
Charge for Temporary Discontinuance of Service—Non-Residential
Whenever service has been temporarily disconnected at the request of
6 the customer,this charge plus the appropriate Connection Charge will $ 107.00
be made to reestablish such service for that customer at the same
address.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule M
MISCELLANEOUS SERVICE CHARGES
Applicable to: Entire System Page 3 of 4
Effective Date:
Service
Charge Name and Description Amount of
Charge
No.
Charge for Meter Testing
The Company shall, upon request of a customer, make a test of the
accuracy of the meter serving that customer. The Company shall
inform the customer of the time and place of the test and permit the
customer or his authorized representative to be present if the customer
7 so desires. If no such test has been performed within the previous $ 15.00
four(4)years for the same customer at the same location,the test shall
be performed without charge. If such test has been performed for the
same customer at the same location within the previous four(4)years,
the Company will charge the Meter Test Fee. The customer must be
properly infonned of the result of any test on a meter that services the
customer.
Charge for Service Calls During Business Hours
8 A Service Call Charge is made for responding to a service call during $ 26.00
standard business hours that is determined to be a customer related
problem rather than a Company or Company facilities problem.
Charge for Service Calls After Business Hours
9 A Service Call Charge is made for responding to a service call after $ 40.00
standard business hours that is determined to be a customer related
problem rather than a Company or Company facilities problem.
Tampering Charge
No Company meters, equipment, or other property, whether on
Customer's premises or elsewhere, are to be tampered with or
interfered with for any reason. A Tampering Charge is made for
unauthorized reconnection or other tampering with Company
10 metering facilities or a theft of gas service by a person on the $ 125.00
customer's premises or evidence by whomsoever at customer's
premises. An additional cost for the cost of repairs and/or
replacement of damaged facilities and the installation of protective
facilities or relocation of meter are made at cost plus appropriate
charges as may be detailed in the Company's Service Rules and
Regulations
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule M
MISCELLANEOUS SERVICE CHARGES
Applicable to: Entire System Page 4 of 4
Effective Date:
Service
Charge Name and Description Amount of
Charge
No.
Line Extension and Installation Charges
Customers in incorporated areas: Extension and installation of new
mains, service lines, risers, fittings and other appurtenant equipment
pursuant to main extension policy in municipal franchise and in Rate
Schedule LEI—Line Extension Policy—Incorporated Areas. Credit
for main pursuant to municipal franchise. The customer is
responsible for the installation of yard line and yard line risers.
11 Customers in unincorporated areas: Extension and installation of new Actual Cost
mains, service lines, risers, fittings and other appurtenant equipment
pursuant to line extension policy contained in Rate Schedule LEU —
Line Extension Policy — Unincorporated Areas. The customer is
responsible for the installation of yard line and yard line risers.
*Actual cost of the portion of any extensions exceeding the free
extension allowance provided within the line extension.
12 Construction Crew Charges Actual Cost
All labor charges if a construction crew is required.
13 Construction Costs Charges Actual Cost
All other construction charges.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire Systern Page I of 12
Effective Date:
CoSery Gas follows the quality of service requirements as set forth in the Commission rules at 16
TAC Sections 7.45 (Quality of Service) and Section 7.460 (Suspension of Gas Utility Service
Disconnection During an Extreme Weather Emergency). These rules follow.
Sections 7.45 (Quality of Service)
For gas utility service to residential and small commercial customers, the following minimum
service standards shall be applicable in unincorporated areas. In addition, each gas distribution
utility is ordered to amend its service rules to include said minimum service standards within the
utility service rules applicable to residential and small commercial customers within incorporated
areas, but only to the extent that said minimum service standards do not conflict with standards
lawfully established within a particular municipality for a gas distribution utility. Said gas
distribution utility shall file service rules incorporating said minimum service standards with the
Railroad Commission and with the municipalities in the manner prescribed by law.
(1) Continuity of service.
(A) Service interruptions.
(i) Every gas utility shall make all reasonable efforts to prevent interruptions of service. When
interruptions occur,the utility shall reestablish service within the shortest possible time consistent
with prudent operating principles so that the smallest number of customers are affected.
(ii) Each utility shall make reasonable provisions to meet emergencies resulting from failure
of service, and each utility shall issue instructions to its employees covering procedures to be
followed in the event of an emergency in order to prevent or mitigate interruption or impairment
of service.
(iii) In the event of national emergency or local disaster resulting in disruption of normal
service, the utility may, in the public interest, interrupt service to other customers to provide
necessary service to civil defense or other emergency service agencies on a temporary basis until
normal service to these agencies can be restored.
(B) Record of interruption. Except for momentary interruptions which do not cause a major
disruption of service,each utility shall keep a complete record of all interruptions, both emergency
and scheduled. This record shall show the cause of interruptions, date, time duration, location,
approximate number of customers affected, and, in cases of emergency interruptions, the remedy
and steps taken to prevent recurrence.
(C) Report to commission. The commission shall be notified in writing within 48 hours of
interruptions in service affecting the entire system or any major division thereof lasting more than
four hours. The notice shall also state the cause of such interruptions. If any service interruption is
reported to the commission otherwise (for example, as a curtailment report or safety report), such
other report is sufficient to comply with the terms of this paragraph.
(2) Customer relations.
(A) Information to customers. Each utility shall:
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 2 of 12
Effective Date:
(i)maintain a current set of maps showing the physical locations of its facilities.All distribution
facilities shall be labeled to indicate the size or any pertinent information which will accurately
describe the utility's facilities.These maps,or such other maps as may be required by the regulatory
authority, shall be kept by the utility in a central location and will be available for inspection by
the regulatory authority during normal working hours. Each business office or service center shall
have available up-to-date maps, plans, or records of its immediate area, with such other
information as may be necessary to enable the utility to advise applicants and others entitled to the
information as to the facilities available for serving that locality;
(ii) assist the customer or applicant in selecting the most economical rate schedule;
(iii) in compliance with applicable law or regulations, notify customers affected by a change
in rates or schedule or classification;
(iv)post a notice in a conspicuous place in each business office of the utility where applications
for service are received informing the public that copies of the rate schedules and rules relating to
the service of the utility as filed with the commission are available for inspection;
(v) upon request inform its customers as to the method of reading meters;
(vi) provide to new customers, at the time service is initiated or as an insert in the first billing,
a pamphlet or information packet containing the following information. This information shall be
provided in English and Spanish as necessary to adequately inform the customers; provided,
however, the regulatory authority upon application and a showing of good cause may exempt the
utility from the requirement that the information be provided in Spanish:
(I) the customer's right to information concerning rates and services and the customer's right
to inspect or obtain at reproduction cost a copy of the applicable tariffs and service rules;
(II)the customer's right to have his or her meter checked without charge under paragraph (7)
of this section, if applicable;
(III)the time allowed to pay outstanding bills;
(IV) grounds for termination of service;
(V)the steps the utility must take before terminating service;
(VI) how the customer can resolve billing disputes with the utility and how disputes and
health emergencies may affect termination of service;
(VII) information on alternative payment plans offered by the utility;
(VIII)the steps necessary to have service reconnected after involuntary termination;
(IX) the appropriate regulatory authority with whom to register a complaint and how to
contact such authority;
(X) the hours, addresses, and telephone numbers of utility offices where bills may be paid
and information may be obtained; and
(XI)the customer's right to be instructed by the utility how to read his or her meter;
(vii) at least once each calendar year, notify customers that information is available upon
request, at no charge to the customer, concerning the items listed in clause (vi)(1) - (XI) of this
subparagraph. This notice may be accomplished by use of a billing insert or a printed statement
upon the bill itself.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 3 of 12
Effective Date:
(B) Customer complaints. Upon complaint to the utility by residential or small commercial
customers either at its office, by letter, or by telephone,the utility shall promptly make a suitable
investigation and advise the complainant of the results thereof. If shall keep a record of all
complaints which shall show the name and address of the complainant,the date and nature of the
complaint, and the adjustment or disposition thereof for a period of one year subsequent to the
final disposition of the complaint.
(C) Utility response. Upon receipt of a complaint, either by letter or by telephone, from the
regulatory authority on behalf of a customer, the utility shall make a suitable investigation and
advise the regulatory authority and complainant of the results thereof. An initial response must be
made by the next working day.The utility must make a final and complete response within 15 days
from the date of the complaint, unless additional time is granted within the 15-day period. The
commission encourages all customer complaints to be made in writing to assist the regulatory
authority in maintaining records of the quality of service of each utility; however, telephone
communications will be acceptable.
(D) Deferred payment plan. The utility is encouraged to offer a deferred payment plan for
delinquent residential accounts. If such a plan is offered, it shall conform to the following
guidelines:
(i) Every deferred payment plan entered into due to the customer's inability to pay the
outstanding bill in full must provide that service will not be discontinued if the customer pays
current bills and a reasonable amount of the outstanding bill and agrees to pay the balance in
reasonable installments until the bill is paid.
(ii) For purposes of determining reasonableness under these rules, the following shall be
considered: size of delinquent account;customer's ability to pay;customer's payment history;time
that the debt has been outstanding; reasons why debt has been outstanding; and other relevant
factors concerning the circumstances of the customer.
(iii)A deferred payment plan, if reduced to writing,offered by a utility shall state, immediately
preceding the space provided for the customer's signature and in bold-face print at least two sizes
larger than any other used, that: "If you are not satisfied with this agreement, do not sign. If you
are satisfied with this agreement, you give up your right to dispute the amount due under the
agreement except for the utility's failure or refusal to comply with the terms of this agreement."
(iv) A deferred payment plan may include a one-time 5.0%penalty for late payment on the
original amount of the outstanding bill with no prompt payment discount allowed except in cases
where the outstanding bill is unusually high as a result of the utility's error(such as an inaccurately
estimated bill or an incorrectly read meter). A deferred payment plan shall not include a finance
charge.
(v) If a customer for utility service has not fulfilled terms of a deferred payment agreement or
refuses to sign the same if it is reduced to writing, the utility shall have the right to disconnect
pursuant to disconnection rules herein and, under such circumstances, it shall not be required to
offer a subsequent negotiation of a deferred payment agreement prior to disconnection.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 4 of 12
Effective Date:
(vi) Any utility which institutes a deferred payment plan shall not refuse a customer
participation in such a program on the basis of race, color, creed, sex, marital status, age, or any
other form of discrimination prohibited by law.
(E) Delayed payment of bills by elderly persons.
(i) Applicability. This subparagraph applies only to:
(1) a utility that assesses late payment charges on residential customers and that suspends
service before the 26th day after the date of the bill for which collection action is taken;
(1I) utility bills issued on or after August 30, 1993; and
(III) an elderly person, as defined in clause (ii) of this subparagraph, who is a residential
customer and who occupies the entire premises for which a delay is requested.
(ii) Definitions.
(I) Elderly person--A person who is 60 years of age or older.
(1I) Utility--A gas utility or municipally owned utility, as defined in Texas Utilities Code,
§§101.003(7), 101.003(8), and 121.001 - 121.006.
(iii) An elderly person may request that the utility implement the delay for either the most
recent utility bill or for the most recent utility bill and each subsequent utility bill.
(iv) On request of an elderly person, a utility shall delay without penalty the payment date of
a bill for providing utility services to that person until the 25th day after the date on which the bill
is issued.
(v)The utility may require the requesting person to present reasonable proof that the person is
60 years of age or older.
(vi) Every utility shall notify its customers of this delayed payment option no less often than
yearly.A utility may include this notice with other information provided pursuant to subparagraph
(A) of this paragraph.
(3) Refusal of service.
(A) Compliance by applicant.Any utility may decline to serve an applicant for whom service is
available from previously installed facilities until such applicant has complied with the state and
municipal regulations and approved rules and regulations of the utility on file with the commission
governing the service applied for or for the following reasons.
(i)Applicant's facilities inadequate. If the applicant's installation or equipment is known to be
hazardous or of such character that satisfactory service cannot be given.
(ii) For indebtedness. If the applicant is indebted to any utility for the same kind of service as
that applied for; provided, however, that in the event the indebtedness of the applicant for service
is in dispute,the applicant shall be served upon complying with the applicable deposit requirement.
(iii) Refusal to make deposit. For refusal to make a deposit if applicant is required to make a
deposit under these rules.
(B) Applicant's recourse. In the event that the utility shall refuse to serve an applicant under the
provisions of these rules, the utility must inform the applicant of the basis of its refusal and that
the applicant may file a complaint with the municipal regulatory authority or commission,
whichever is appropriate.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 5 of 12
Effective Date:
(C) Insufficient grounds for refusal to serve. The following shall not constitute sufficient cause
for refusal of service to a present customer or applicant:
(i) delinquency in payment for service by a previous occupant of the premises to be served;
(ii) failure to pay for merchandise or charges for nonutility service purchased from the utility;
(iii) failure to pay a bill to correct previous underbilling due to misapplication of rates more
than six months prior to the date of application;
(iv) violation of the utility's rules pertaining to operation of nonstandard equipment or
unauthorized attachments which interfere with the service of others unless the customer has first
been notified and been afforded reasonable opportunity to comply with these rules;
(v)failure to pay a bill of another customer as guarantor thereof unless the guarantee was made
in writing to the utility as a condition precedent to service; and
(vi) failure to pay the bill of another customer at the same address except where the change of
customer identity is made to avoid or evade payment of a utility bill.
(4) Discontinuance of service.
(A) The due date of the bill for utility service shall not be less than 15 days after issuance, or
such other period of time as may be provided by order of the regulatory authority. A bill for utility
service is delinquent if unpaid by the due date.
(B)A utility may offer an inducement for prompt payment of bills by allowing a discount in the
amount of 5.0% for payment of bills within 10 days after their issuance. This provision shall not
apply where it conflicts with existing orders or ordinances of the appropriate regulatory authority.
(C) A customer's utility service may be disconnected if the bill has not been paid or a deferred
payment plan pursuant to paragraph (2)(D) of this section has not been entered into within five
working days after the bill has become delinquent and proper notice has been given. Proper notice
consists of a deposit in the United States mail, postage prepaid, or hand delivery to the customer
at least five working days prior to the stated date of disconnection, with the words "Termination
Notice" or similar language prominently displayed on the notice. The notice shall be provided in
English and Spanish as necessary to adequately inform the customer, and shall include the date of
termination, the hours, address, and telephone number where payment may be made, and a
statement that if a health or other emergency exists, the utility may be contacted concerning the
nature of the emergency and the relief available, if any, to meet such emergency.
(D) Utility service may be disconnected for any of the following reasons:
(i)failure to pay a delinquent account or failure to comply with the terms of a deferred payment
plan for installment payment of a delinquent account;
(ii) violation of the utility's rules pertaining to the use of service in a manner which interferes
with the service of others or the operation of nonstandard equipment, if a reasonable attempt has
been made to notify the customer and the customer is provided with a reasonable opportunity to
remedy the situation;
(iii) failure to comply with deposit or guarantee arrangements where required by paragraph (5)
of this section;
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 6 of 12
Effective Date:
(iv) without notice where a known dangerous condition exists for as long as the condition
exists;
(v)tampering with the utility company's meter or equipment or bypassing the same.
(E)Utility service may not be disconnected for any of the following reasons:
(i)delinquency in payment for service by a previous occupant of the premises;
(ii) failure to pay for merchandise or charges for nonutility service by the utility;
(iii) failure to pay for a different type or class of utility service unless fee for such service is
included on the same bill;
(iv) failure to pay the account of another customer as guarantor thereof, unless the utility has
in writing the guarantee as a condition precedent to service;
(v) failure to pay charges arising from an underbilling occurring due to any misapplication of
rates more than six months prior to the current billings;
(vi) failure to pay charges arising from an underbilling due to any faulty metering, unless the
meter has been tampered with or unless such underbilling charges are due;
(vii) failure to pay an estimated bill other than a bill rendered pursuant to an approved meter
reading plan, unless the utility is unable to read the meter due to circumstances beyond its control.
(F)Unless a dangerous condition exists,or unless the customer requests disconnection, service
shall not be disconnected on a day, or on a day immediately preceding a day, when personnel of
the utility are not available to the public for the purpose of making collections and reconnecting
service.
(G)No utility may abandon a customer without written approval from the regulatory authority.
(H)No utility may discontinue service to a delinquent residential customer permanently residing
in an individually metered dwelling unit when that customer establishes that discontinuance of
service will result in some person residing at that residence becoming seriously ill or more
seriously ill if the service is discontinued. Any customer seeking to avoid termination of service
under this section must make a written request supported by a written statement from a licensed
physician. Both the request and the statement must be received by the utility not more than five
working days after the date of delinquency of the bill. The prohibition against service termination
provided by this section shall last 20 days from the date of receipt by the utility of the request and
statement or such lesser period as may be agreed upon by the utility and the customer. The
customer who makes such request shall sign an installment agreement which provides for payment
of such service along with timely payments for subsequent monthly billings.
(5)Applicant deposit.
(A) Establishment of credit for residential applicants. Each utility may require a residential
applicant for service to satisfactorily establish credit but such establishment of credit shall not
relieve the customer from complying with rules for prompt payment of bills. Subject to these rules,
a residential applicant shall not be required to pay a deposit:
(i) if the residential applicant has been a customer of any utility for the same kind of service
within the last two years and is not delinquent in payment of any such utility service account and
during the last 12 consecutive months of service did not have more than one occasion in which a
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 7 of 12
Effective Date:
bill for such utility service was paid after becoming delinquent and never had service disconnected
for nonpayment;
(ii) if the residential applicant furnishes in writing a satisfactory guarantee to secure payment
of bills for the service required; or
(iii) if the residential applicant furnishes in writing a satisfactory credit rating by appropriate
means, including, but not limited to, the production of generally acceptable credit cards, letters of
credit reference,the names of credit references which may be quickly and inexpensively contacted
by the utility, or ownership of substantial equity.
(B)Reestablishment of credit.Every applicant who has previously been a customer of the utility
and whose service has been discontinued for nonpayment of bills shall be required before service
is rendered to pay all his amounts due the utility or execute a written deferred payment agreement,
if offered, and reestablish credit as provided in subparagraph(A) of this paragraph.
(C) Amount of deposit and interest for residential service, and exemption from deposit.
(i) Each gas utility shall waive any deposit requirement for residential service for an applicant
who has been determined to be a victim of family violence as defined in Texas Family Code,
§71.004, by a family violence center, by treating medical personnel, by law enforcement agency
personnel, or by a designee of the Attorney General in the Crime Victim Services Division of the
Office of the Attorney General. This determination shall be evidenced by the applicant's
submission of a certification letter developed by the Texas Council on Family Violence and made
available on its web site.
(ii) The required deposit shall not exceed an amount equivalent to one-sixth of the estimated
annual billings. If actual use is at least twice the amount of the estimated billings, a new deposit
requirement may be calculated and an additional deposit may be required within two days. If such
additional deposit is not made,the utility may disconnect service under the standard disconnection
procedure for failure to comply with deposit requirements.
(iii) All applicants for residential service who are 65 years of age or older will be considered
as having established credit if such applicant does not have an outstanding account balance with
the utility or another utility for the same utility service which accrued within the last two years.
No cash deposit shall be required of such applicant under these conditions.
(iv) Each utility which requires deposits to be made by its customers shall pay a minimum
interest on such deposits according to the rate as established by law. If refund of deposit is made
within 30 days of receipt of deposit,no interest payment is required.If the utility retains the deposit
more than 30 days,payment of interest shall be made retroactive to the date of deposit.
(I) Payment of interest to the customer shall be annually or at the time the deposit is returned
or credited to the customer's account.
(II) The deposit shall cease to draw interest on the date it is returned or credited to the
customer's account.
(D) Deposits for temporary or seasonal service and for weekend or seasonal residences. The
utility may require a deposit sufficient to reasonably protect it against the assumed risk,provided
such a policy is applied in a uniform and nondiscriminatory manner.
TARIFF FOR GAS SERVICE
CoSery Gas, Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 8 of 12
Effective Date:
(E) Records of deposits.
(i) The utility shall keep records to show:
(I) the name and address of each depositor;
(I1)the amount and date of the deposit; and
(III)each transaction concerning the deposit.
(ii)The utility shall issue a receipt of deposit to each applicant from whom a deposit is received
and shall provide means whereby a depositor may establish claim if the receipt is lost.
(iii) A record of each unclaimed deposit must be maintained for at least four years, during
which time the utility shall make a reasonable effort to return the deposit.
(F) Refund of deposit.
(i) If service is not connected or after disconnection of service, the utility shall promptly and
automatically refund the customer's deposit plus accrued interest on the balance, if any, in excess
of the unpaid bills for service furnished.The transfer of service from one premise to another within
the service area of the utility shall not be deemed a disconnection within the meaning of these
rules, and no additional deposit may be demanded unless permitted by these rules.
(ii) When the customer has paid bills for service for 12 consecutive residential bills without
having service disconnected for nonpayment of bill and without having more than two occasions
in which a bill was delinquent and when the customer is not delinquent in the payment of the
current bills, the utility shall promptly and automatically refund the deposit plus accrued interest
to the customer in the form of cash or credit to a customer's account.
(G) Upon sale or transfer of utility or company. Upon the sale or transfer of any public utility
or operating units thereof,the seller shall file with the commission under oath, in addition to other
information, a list showing the names and addresses of all customers served by such utility or unit
who have to their credit a deposit, the date such deposit was made, the amount thereof, and the
unpaid interest thereon.
(H) Complaint by applicant or customer. Each utility shall direct its personnel engaged in initial
contact with an applicant or customer for service seeking to establish or reestablish credit under
the provisions of these rules to inform the customer, if dissatisfaction is expressed with the utility's
decision, of the customer's right to file a complaint with the regulatory authority thereon.
(6) Billing.
(A)Bills for gas service shall be rendered monthly,unless otherwise authorized or unless service
is rendered for a period less than a month. Bills shall be rendered as promptly as possible following
the reading of meters.
(B) The customer's bill must show all the following information. The information must be
arranged and displayed in such a manner as to allow the customer to compute his bill with the
applicable rate schedule. The applicable rate schedule must be mailed to the customer on request
of the customer. A utility may exhaust its present stock of nonconforming bill forms before
compliance is required by this section:
(i) if the meter is read by the utility,the date and reading of the meter at the beginning and end
of the period for which rendered;
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 9 of 12
Effective Date:
(ii) the number and kind of units billed;
(iii)the applicable rate schedule title or code;
(iv)the total base bill;
(v)the total of any adjustments to the base bill and the amount of adjustments per billing unit;
(vi)the date by which the customer must pay the bill to get prompt payment discount;
(vii)the total amount due before and after any discount for prompt payment within a designated
period;
(viii) a distinct marking to identify an estimated bill.
(C) Where there is good reason for doing so, estimated bills may be submitted, provided that an
actual meter reading is taken at least every six months.For the second consecutive month in which
the meter reader is unable to gain access to the premises to read the meter on regular meter reading
trips, or in months where meters are not read otherwise,the utility must provide the customer with
a postcard and request that the customer read the meter and return the card to the utility if the meter
is of a type that can be read by the customer without significant inconvenience or special tools or
equipment. If such a postcard is not received by the utility in time for billing, the utility may
estimate the meter reading and render the bill accordingly.
(D) Disputed bills.
(i) In the event of a dispute between the customer and the utility regarding the bill, the utility
must forthwith make such investigation as is required by the particular case and report the results
thereof to the customer. If the customer wishes to obtain the benefits of clause (ii) of this
subparagraph, notification of the dispute must be given to the utility prior to the date the bill
becomes delinquent. In the event the dispute is not resolved, the utility shall inform the customer
of the complaint procedures of the appropriate regulatory authority.
(ii)Notwithstanding any other subsection of this section,the customer shall not be required to
pay the disputed portion of the bill which exceeds the amount of that customer's average usage for
the billing period at current rates until the earlier of the following: resolution of the dispute or the
expiration of the 60-day period beginning on the day the disputed bill is issued. For purposes of
this section only, the customer's average usage for the billing period shall be the average of the
customer's usage for the same billing period during the preceding two years. Where no previous
usage history exists, the average usage shall be estimated on the basis of usage levels of similar
customers and under similar conditions.
(7) Meters.
(A) Meter requirements.
(i) Use of meter. All gas sold by a utility must be charged for by meter measurements, except
where otherwise provided for by applicable law, regulation of the regulatory authority, or tariff.
(ii) Installation by utility. Unless otherwise authorized by the regulatory authority, each utility
must provide and install and will continue to own and maintain all meters necessary for
measurement of gas delivered to its customers.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 10 of 12
Effective Date:
(iii) Standard type.No utility may furnish, set up, or put in use any meter which is not reliable
and of a standard type which meets generally accepted industry standards; provided, however,
special meters not necessarily conforming to such standard types may be used for investigation,
testing, or experimental purposes.
(B)Meter records. Each utility must keep the following records:
(i) Meter equipment records. Each utility must keep a record of all its meters, showing the
customer's address and date of the last test.
(ii) Records of meter tests. All meter tests must be properly referenced to the meter record
provided for therein. The record of each test made on request of a customer must show the
identifying number and constants of the meter, the standard meter and other measuring devices
used,the date and kind of test made,by whom made,the error(or percentage of accuracy)at each
load tested, and sufficient data to permit verification of all calculations.
(iii)Meter readings--meter unit location. In general, each meter must indicate clearly the units
of service for which charge is made to the customer.
(iv)Meter tests on request of customer.
(I) Each utility must, upon request of a customer, make a test of the accuracy of the meter
serving that customer. The utility must inform the customer of the time and place of the test and
permit the customer or his authorized representative to be present if the customer so desires.If no
such test has been performed within the previous four years for the same customer at the same
location,the test is to be performed without charge.If such a test has been performed for the same
customer at the same location within the previous four years,the utility is entitled to charge a fee
for the test not to exceed $15 or such other fee for the testing of meters as may be set forth in the
utility's tariff properly on file with the regulatory authority. The customer must be properly
informed of the result of any test on a meter that serves him.
(II) Notwithstanding subclause (I) of this clause, if the meter is found to be more than
nominally defective, to either the customer's or the utility's disadvantage, any fee charged for a
meter test must be refunded to the customer. More than nominally defective means a deviation of
more than 2.0%from accurate registration.
(v)Bill adjustments due to meter error.
(I) If any meter test reveals a meter to be more than nominally defective, the utility must
correct previous readings consistent with the inaccuracy found in the meter for the period of either:
(-a-)the last six months; or
(-b-) the last test of the meter, whichever is shorter. Any resulting underbillings or
overbillings are to be corrected in subsequent bills, unless service is terminated, in which event a
monetary adjustment is to be made. This requirement for a correction may be foregone by the
utility if the error is to the utility's disadvantage.
(II) If a meter is found not to register for any period of time, the utility may make a charge
for units used but not metered for a period not to exceed three months previous to the time the
meter is found not to be registering. The determination of amounts used but not metered is to be
based on consumption during other like periods by the same customer at the same location,when
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 1 1 of 12
Effective Date:
available, and on consumption under similar conditions at the same location or of other similarly
situated customers, when not available.
(8)New construction.
(A)Standards of construction.Each utility is to construct,install,operate,and maintain its plant,
structures, equipment, and lines in accordance with the provisions of such codes and standards as
are generally accepted by the industry, as modified by rule or regulation of the regulatory authority
or otherwise by law, and in such manner to best accommodate the public and to prevent
interference with service furnished by other public utilities insofar as practical.
(B) Line extension and construction charges. Every utility must file its extension policy. The
policy must be consistent, nondiscriminatory, and is subject to the approval of the regulatory
authority. No contribution in aid of construction may be required of any customer except as
provided for in extension policy.
(C) Response to request for service. Every gas utility must serve each qualified applicant for
service within its service area as rapidly as practical. As a general policy, those applications not
involving line extensions or new facilities should be filled within seven working days. Those
applications for individual residential service requiring line extensions should be filled within 90
days unless unavailability of materials or other causes beyond the control of the utility result in
unavoidable delays. In the event that residential service is delayed in excess of 90 days after an
applicant has met credit requirements and made satisfactory arrangements for payment of any
required construction charges, a report must be made to the regulatory authority listing the name
of the applicant, location, and cause for delay. Unless such delays are due to causes which are
reasonably beyond the control of the utility,a delay in excess of 90 days may be found to constitute
a refusal to serve.
Section 7.460 (Suspension of Gas Utility Service Disconnection During an Extreme Weather
Emergency)
(a) Applicability and scope. This rule applies to gas utilities, as defined in Texas Utilities Code,
§101.003(7) and §121.001, and to owners, operators, and managers of mobile home parks or
apartment houses who purchase natural gas through a master meter for delivery to a dwelling unit
in a mobile home park or apartment house,pursuant to Texas Utilities Code, §§124.001-124.002,
within the jurisdiction of the Railroad Commission pursuant to Texas Utilities Code, §102.001.
For purposes of this section, all such gas utilities and owners, operators and managers of master
meter systems shall be referred to as"providers." Providers shall comply with the following service
standards. A gas distribution utility shall file amended service rules incorporating these standards
with the Railroad Commission in the manner prescribed by law.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule Q
QUALITY OF SERVICE
Applicable to: Entire System Page 12 of 12
Effective Date:
(b) Disconnection prohibited. Except where there is a known dangerous condition or a use of
natural gas service in a manner that is dangerous or unreasonably interferes with service to others,
a provider shall not disconnect natural gas service to:
(1)a delinquent residential customer during an extreme weather emergency.An extreme weather
emergency means a day when the previous day's highest temperature did not exceed 32 degrees
Fahrenheit and the temperature is predicted to remain at or below that level for the next 24 hours
according to the nearest National Weather Station for the county where the customer takes service.
(2)a delinquent residential customer for a billing period in which the provider receives a written
pledge, letter of intent, purchase order, or other written notification from an energy assistance
provider that it is forwarding sufficient payment to continue service; or
(3)a delinquent residential customer on a weekend day,unless personnel or agents of the provider
are available for the purpose of receiving payment or making collections and reconnecting service.
(c) Payment plans. Providers shall defer collection of the full payment of bills that are due during
an extreme weather emergency until after the emergency is over, and shall work with customers
to establish a payment schedule for deferred bills as set forth in §7.45 of this title (relating to
Quality of Service).
(d)Notice. Beginning in the September or October billing periods utilities and owners, operators,
or managers of master metered systems shall give notice as follows:
(1) Each utility shall provide a copy of this rule to the social services agencies that distribute
funds from the Low Income Home Energy Assistance Program within the utility's service area.
(2)Each utility shall provide a copy of this rule to any other social service agency of which the
provider is aware that provides financial assistance to low income customers in the utility's service
area.
(3) Each utility shall provide a copy of this rule to all residential customers of the utility and
customers who are owners, operators, or managers of master metered systems.
(4) Owners, operators, or managers of master metered systems shall provide a copy of this rule
to all of their customers.
(e) In addition to the minimum standards specified in this section,providers may adopt additional
or alternative requirements if the provider files a tariff with the Commission pursuant to §7.315 of
this title (relating to Filing of Tariffs). The Commission shall review the tariff to ensure that at
least the minimum standards of this section are met.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule CP
CURTAILMENT POLICY
Applicable to: Entire System Page I of I
Effective Date:
CoSery Gas follows the requirements of the order in the Railroad Commission of Texas, Gas
Utilities Docket No. 489.
TARIFF FOR GAS SERVICE
CoSery Gas,Ltd.
Rate Schedule DEP
CUSTOMER DEPOSITS
Applicable to: Entire System Page 1 of 1
Effective Date:
Customer deposits are not required with acceptable credit bureau or other report of good credit by
a utility. Deposits may be required of CoSery Gas customers who have been disconnected for
nonpayment and later request to be reconnected. Deposits will be determined by estimating one-
sixth of the average annual bill, and may include allowable additional charges, as specified by
Texas Railroad Commission regulation. See applicable Commission regulation at 16 TAC Section
7.45 (Quality of Service Rule) for other provisions governing deposits.
OS-20-00005136
Exhibit B to Settlement Agreement
Proof of Revenues
Exhibit B to Settlement Agreement
Proof of Revenues
CoSery Gas,Ltd Statement of Intent
OS-10-00005136
Exhibit B-Proof of Revenues Exclusive of Purchased Gas Factor Revenues
Settlement Terms:
Dollar Increase $6,250,000
Base Rate Supported Revenue Requirement $39,162,651
Line Commercial&
No. Description Total Residential Public Auth. Contract Other
(a) (b) W (d) (e) M
1 Customer Charge Billing Determinants 1,617,096 35,820
2 Current Customer Charge $ 6.53 $ 12.60
3 Revenues Collected in Customer Charge $ 11,010,969 $ 10,559,637 $ 451,332
4 Volumetric Charge Billing Determinants(Ccf) 101,003,816 15,313,408
5 Current Volumetric Rate per Ccf $ 0.18450 $ 0.21500
6 Revenues Collected in Customer Charge $ 21,927,587 $ 18,635,204 $ 3,292,383
7 Current Base Rate Revenues $ 33,115,431 $ 29,194,941 $ 3,743,715 $ 176,875
8 Settlement Dollar Increase 6,250,000
9 Calculated Base Rate Revenues After Increase $ 39,365,431
10 Base Rate Revenues from Settlement Term Sheet $ 39,162,651
11 Residential,PA and Commercial Class Revenue Requirement $ 38,985,776
12 Revenue Split per Update Filing 100.00% 94.20% 5.80%
Class Base Rate Revenue Requirement $ 38,985,776 $ 36,724,601 $ 2,261,175
10 Customer Charge Billing Determinants 1,617,096 35,820
13 Settlement Customer Charge $ 15.00 $ 35.00
14 Revenues Collected in Customer Charge $ 25,510,140 $ 24,256,440 $ 1,253,700
15 Volumetric Charge Billing Determinants(Ccf) 101,003,816 15,313,408
16 Settlement Volumetric Rate per Ccf $ 0.12344 $ 0.06579
17 Revenues Collected in Customer Charge $ 13,475,380 $ 12,467,911 $ 1,007,469
18 Total Revenues from Tariffed Customers $ 39,162,395 $ 36,724,351 $ 2,261,169 $ 176,875
19 Total Settlement Revenues $ 40,291,395 $ 36,724,351 $ 2,261,169 $ 176,875 $ 1,129,000
20 Adjustment for EDIT Credit
21 Volumetric Charge Billing Determinants(Ccf) 101,003,816 15,313,408
22 Volumetric Rate per Ccf $ (0.00247) $ (0.00100)
23 EDIT Credit(See Note) $ (264,793) $ (249,479) $ (15,313)
24 Volumetric Charges with EDIT Credit
25 Volumetric Charge Billing Determinants(Ccf) 101,003,816 15,313,408
26 Volumetric Rate per Ccf $ 0.12097 $ 0.06479
27 EDIT Credit(See Note) $ 13,210,587 $ 12,218,432 $ 992,156
28 Total Settlement Revenues after EDIT Credit $ 40,026,602 $ 36,474,872 $ 2,245,856 $ 176,875 $ 1,129,000
NOTE:
EDIT Credit base is$271,711 per year($10,325,015/38). Above total of$264,793(249,479+15,313)is less because of factoring in growth to determine Ccf credit.
OS-20-00005136
Exhibit C to Settlement Agreement
Plant in Service and Depreciation Rates
Exhibit C to Settlement Agreement
Plant in Service as of 6/30/20 and Depreciation Rates
CoSery Gas,Ltd.Statement of Intent
OS-20-00005136
Exhibit C-Plant in Service as of 6130120 and Depreciation Rates
Line FERC Plant in Depreciation
No. Account Description Service Rate
(a) (b) (c) (d)
1 302 Franchises and Consents $ 54,996 0.00%
2 374 Land and Land Rights 3,571,351 1.33%
3 376 Mains 123,576,416 2.64%
4 378 Meas.&Reg.Station-General 3,375,158 3.41%
5 379 Meas.&Reg.Station-City Gates 4,632,680 3.07%
6 380 Services 37,243,444 3.33%
7 381 Meters 17,675,012 4.83%
8 382 Meter Installations 21,529,545 5.42%
9 383 House Regulators 4,577,247 4.95%
10 387 Other Equipment 16,302 4.35%
11 390 Structures and Improvements 42,282 3.67%
12 391 Office Furniture and Equipment 4,257,586 10.00%
13 391 Computer Equipment 255,078 33.30%
14 392 Transportation Equipment 4,282,179 13.84%
15 394 Tools,Shop and Garage 675,192 5.88%
16 396 Power Operated Equipment 1,050,208 10.13%
17 397 Communication Equipment 281,574 6.25%
18 Total Plant in Service $ 227,096,251
19 Accumulated Depreciation (46,728,113)
20 Net Plant in Service $ 180,368,138
OS-20-00005136
Exhibit D to Settlement Agreement
Rate Case Expenses
Exhibit D to Settlement Agreement
Rate Case Expenses
OS-20-00005136
Exhibit D to Settlement Agreement
Pagel of 3
RAILROAD COMMISSION OF TEXAS
HEARING DIVISION
STATEMENT OF INTENT OF §
COSERV GAS, LTD. TO §
INCREASE RATES IN § DOCKET NO. OS-20-00005136
UNINCORPORATED AREAS OF §
COLLIN, DENTON, AND §
KAUFMAN COUNTIES, TEXAS
AFFIDAVIT OF JOHN R. HAYS, JR.
Before me, the undersigned authority, on this date personally appeared John R.
Hays, Jr., known to me to be the person whose name is subscribed below, and being by me
first duly sworn, stated upon oath as follows:
1. My name is John R. Hays, Jr. I am over 18 years of age, of sound mind and fully
competent to make this affidavit. Each statement of fact herein is true and of my
own personal knowledge.
2. I am the principal with the Hays Law Firm based in Austin, Texas. I have practiced
law since 1974 and teach Energy Law and Policy as an adjunct professor at the
University of Texas School of Law. I have extensive experience representing and
defending clients before the Railroad Commission of Texas ("Commission"), other
agencies, the courts, and in arbitration.
3. I am counsel of record for CoSery Gas,Ltd.("CoServ"or the "Company")in Docket
No. OS-20-00005136. My firm was engaged to assist in the preparation and
presentation of the Company's rate filing involving the incorporated and
unincorporated areas it serves in Texas, which was filed with the cities it serves and
the Commission on November 13, 2020.
4. Invoices support the $587,387.90 in rate case expenses incurred by CoSery in this
proceeding through April 30, 2021. This amount includes legal expenses incurred
in preparing the filing, expenses incurred by professional consultants retained to
provide analysis and testimony, public notice costs, and incidental expenses. The
invoices are detailed and itemized. The total amount of Company rate case expenses
of$617,387.90 also includes $30,000.00 in estimated costs to complete the case.
OS-20-00005136
Exhibit D to Settlement Agreement
Page 1 of 3
5. I am familiar with the Commission Rule on Rate Case Expenses, 16 Tex. Admin.
Code §7.5530, as well as past decisions rendered by the Commission regarding the
types of expenses that are eligible for rate case expense recovery.
6. Of CoServ's total actual amount of rate case expenses for this proceeding,
$373,271.13 are required regulatory expenses and $214,116.77 are litigation
expenses as defined by 16 Tex. Admin. Code §7.5530(d).
7. I have reviewed the billings of the Hays Law Firm and Jackson Walker submitted
to CoSery for legal services performed in this proceeding, and I affirm that those
billings accurately reflect the time spent and expenditures incurred by these firms
on CoServ's behalf. The charges and rates of my firm are reasonable and consistent
with those billed by others for similar work, and the rates are comparable to rates
charged by other professionals with the same level of expertise and experience. The
hours spent to perform the tasks assigned to these firms were necessary to complete
those tasks in a professional manner on a timely basis and the nature of the work
performed is typical of a rate proceeding such as this case. The nature of this work
included the preparation of testimony and other aspects of the Company's rate filing
package, answering discovery questions, and addressing settlement issues. There
was no duplication of services, and the Company's request for a rate change was
warranted. Further, the work was relevant and reasonably necessary to the
proceeding, and the complexity and expense of the work was commensurate with
both the complexity of the issues in the proceeding and the amount of the rate
increase sought and granted.
8. In addition to the amounts incurred through April 30, 2021, CoSery has and will
continue to incur additional expenses for additional legal work performed through
the issuance and implementation of a Final Order in this docket. The nature of this
work includes finalizing settlement documents, presentation of the settlement to the
Administrative Law Judge and Examiners, potential discovery and briefing before
the Examiners, and attending Commission conferences. Based on my experience in
administrative proceedings, including proceedings in which the parties seek
approval of a Settlement Agreement as in this case, I estimate those expenses to
complete the case will be approximately $30,000.00.
9. In addition to legal expenses, CoSery incurred other rate case expenses, which
included expenses for professional consultants retained to provide testimony,
preparation of the filing, public notice, responding to discovery, and analyzing
settlement positions. Actual detailed and itemized invoices supporting these other
expenses are attached. The total amount of rate case expenses for consultants is
$335,211.83 and for Company expenses is $23,226.00, which includes costs for
issuing notice.
G5-20-00005136
Exhibit D to Settlement Agreement
Page 1 of 3
10. No portion of the fees or expenses that CoSery seeks to recover is or will be for
luxury items, such as limousine service, sporting events, alcoholic beverages,hotel
movies, or other entertainment. The charges for copies,printing, overnight courier
service,transcripts,and other expenses and costs were necessary for the prosecution
of the case and are reasonable.
11. CoServ's total amount of rate case expenses is $617,387.90, which includes
$30,000.00 in estimated expenses. As reflected in the Settlement Agreement,
CoSery seeks approval to recover the rate case expenses uniformly from all
customers because good cause exists for doing so, in accordance with 16 Tex.
Admin. Code §7.5530. CoSery will supplement this filing with additional invoices
as they are processed.
12. CoSery seeks recovery only of those expenses that are actually incurred, and any
rate case expense surcharge and will collect from ratepayers only the amount
actually incurred and authorized for recovery. I note, however, that the estimated
expenses presume approval of the Settlement Agreement. CoSery reserves the right
to revise this estimate to the extent that additional litigation becomes necessary.
� f
Jo R.Hays, Jr.
SUBSCRIBED AND SWORN TO before me on this��day of May 2021.
AEANN SMITH CAYLOR
Notary Public,State of Texas Notary Public, tate of Texas
as
Expires 01-25.2026"= C
Notary ID 6372141
CoSery Gas,Ltd.
OS-20-00005136
Rate Case Expenses Summary
Total
Regulatory Litigation Recoverable
Vendor Invoice No. Date Amount Expenses Expenses Expenses
Alliance Consulting Group 18-0107 1/31/2018 2,764.13 2,764.13 2,764.13
18-0207 2/28/2018 4,278.35 4,278.35 4,278.35
18-0308 3/31/2018 1,023.75 1,023.75 1,023.75
18-0907 9/30/2018 485.63 485.63 485.63
18-1006 10/31/2018 2,233.88 2,233.88 2,233.88
18-1106 11/30/2018 4,759.13 4,759.13 4,759.13
18-1205 12/31/2018 4,323.38 4,323.38 4,323.38
19-0106 1/31/2019 233.63 233.63 233.63
19-0208 2/28/2019 291.38 291.38 291.38
19-0307 3/31/2019 816.38 816.38 816.38
19-0710 7/31/2019 194.25 194.25 194.25
19-1108 11/30/2019 194.25 194.25 194.25
19-1207 12/31/2019 4,856.25 4,856.25 4,856.25
20-0108 1/31/2020 13,967.63 13,967.63 13,967.63
20-0207 2/29/2020 4,121.25 4,121.25 4,121.25
20-0707 7/31/2020 1,400.44 1,400.44 1,400.44
20-1208 12/31/2020 2,685.38 2,685.38 2,685.38
21-0107 1/31/2021 556.50 556.50 556.50
Total $ 49,185.59 $ 45,943.71 $ 3,241.88 $ 49,185.59
Denton Record-Chronicle 32164 1/5/2021 $ 1,229.00 $ 1,229.00 $ 1,229.00
DMN Media 1782331 12/3/2020 21,997.00 21,997.00 21,997.00
Total $ 23,226.00 $ 23,226.00 $ - $ 23,226.00
Financial Concepts and Applications 1668 3/31/2019 $ 6,075.00 $ 6,075.00 $ 6,075.00
1668 7/31/2019 6,525.00 6,525.00 6,525.00
1668 8/31/2019 4,500.00 4,500.00 4,500.00
1668 10/31/2019 4,950.00 4,950.00 4,950.00
6302020 6/30/2020 8,550.00 8,550.00 8,550.00
01668C 10/31/2020 4,050.00 4,050.00 4,050.00
1668 4/30/2021 900.00 900.00 900.00
Total $ 35,550.00 $ 34,650.00 $ 900.00 $ 35,550.00
GDS Associates,Inc. 171185 4/10/2019 $ 16,245.75 $ 16,245.75 $ 16,245.75
172061 5/8/2019 19,581.75 19,581.75 19,581.75
172820 6/10/2019 5,519.00 5,519.00 5,519.00
172821 6/10/2019 19,556.74 19,556.74 19,556.74
173766 7/9/2019 20,456.81 20,456.81 20,456.81
174658 8/7/2019 14,039.77 14,039.77 14,039.77
175476 9/10/2019 20,764.09 20,764.09 20,764.09
176392 10/8/2019 1,555.56 1,555.56 1,555.56
177285 11/6/2019 1,784.43 1,784.43 1,784.43
178280 12/10/2019 4,205.99 4,205.99 4,205.99
GDS Associates,Inc. 179065 1/9/2020 1,918.50 1,918.50 1,918.50
180095 2/20/2020 940.61 940.61 940.61
Total
Regulatory Litigation Recoverable
Vendor Invoice No. Date Amount Expenses Expenses Expenses
180948 3/13/2020 2,550.49 2,550.49 2,550.49
182170 4/24/2020 5,065.64 5,065.64 5,065.64
182999 5/20/2020 2,302.67 2,302.67 2,302.67
184258 6/15/2020 3,119.05 3,119.05 3,119.05
185129 7/8/2020 4,092.50 4,092.50 4,092.50
186135 8/11/2020 11,810.00 11,810.00 11,810.00
187344 9/11/2020 6,040.00 6,040.00 6,040.00
188251 10/8/2020 7,490.00 7,490.00 7,490.00
189113 11/10/2020 10,282.50 10,282.50 10,282.50
190037 12/9/2020 6,453.14 3,932.50 2,520.64 6,453.14
190943 1/11/2021 12,682.50 12,682.50 12,682.50
191726 2/10/2021 26,206.25 26,206.25 26,206.25
192583 3/8/2021 9,460.00 9,460.00 9,460.00
193457 4/5/2021 8,172.50 8,172.50 8,172.50
194434 5/11/2021 8,180.00 8,180.00 8,180.00
Total $ 250,476.24 $ 183,254.35 $ 67,221.89 $ 250,476.24
Hays Law Firm 1 10/9/2020 $ 11,935.00 $ 11,935.00 $ 11,935.00
2 11/18/2020 26,180.00 26,180.00 26,180.00
3 12/10/2020 37,855.00 35,802.00 2,053.00 37,855.00
4 1/22/2021 55,185.00 55,185.00 55,185.00
5 2/26/2021 21,210.00 21,210.00 21,210.00
6 3/24/2021 16,530.00 16,530.00 16,530.00
7 4/15/2021 17,560.00 17,560.00 17,560.00
8 5/11/2021 30,215.00 30,215.00 30,215.00
Total $ 216,670.00 $ 73,917.00 $ 142,753.00 $ 216,670.00
Jackson Walker LLP 1632232 12/14/2018 1,100.00 1,100.00 1,100.00
1635355 1/16/2019 155.00 155.00 155.00
1645218 3/19/2019 977.50 977.50 977.50
1649774 4/16/2019 5,442.50 5,442.50 5,442.50
1654717 5/16/2019 2,680.07 2,680.07 2,680.07
1675102 9/19/2019 880.00 880.00 880.00
1679340 10/14/2019 55.00 55.00 55.00
1695547 1/17/2020 220.00 220.00 220.00
1710183 4/20/2020 495.00 495.00 495.00
1728239 8/10/2020 275.00 275.00 275.00
Total $ 12,280.07 $ 12,280.07 $ - $ 12,280.07
Total $ 587,387.90 $ 373,271.13 $ 214,116.77 $ 587,387.90
Invoice Estimate to Completion $ 30,000.00
Grand Total $ 617,387.90
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/08/21 M&C FILE NUMBER: M&C 21-0392
LOG NAME: 21COSERV GAS RATE INCREASE
SUBJECT
(ALL)Conduct Public Hearing and Adopt Attached Ordinance Approving Negotiated Settlement Agreement and Establishing Maximum Permitted
Rates and Charges that CoSery Gas, Ltd.May Assess Customers in the City of Fort Worth
(PUBLIC HEARING-a. Report of City Staff: Steve Cooke b.Public Comment c.Council Action:Close Public Hearing and Act on M&C)
RECOMMENDATION:
It is recommended that the City Council adopt the attached Ordinance which:
1. Approves the negotiated Settlement Agreement establishing maximum permitted rates and charges that CoSery Gas, Ltd.may assess
customers in the City of Fort Worth;
2. Finds the rates agreed to in the Settlement Agreement are just and reasonable;
3. Orders CoSery Gas, Ltd.to implement the rates agreed to in the Settlement Agreement;and
4. Requires CoSery Gas, Ltd.to reimburse City's reasonable rate case expenses.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to take action to adopt the attached Ordinance,which approves the negotiated
Settlement Agreement establishing maximum permitted rates and charges that CoSery Gas, Ltd. ("CoServ"or"Company")may assess
customers in the City of Fort Worth("City").
On or about November 13,2020,the Company, pursuant to Subchapter C of Chapter 104 of the Gas Utility Regulatory Act,filed its Statement of
Intent to change gas rates at the Railroad Commission of Texas(RRC)and in all municipalities exercising original jurisdiction within its service
area. The proposed effective date for the new rates was January 23,2021.
On January 12,2021,the City Council,having original jurisdiction over rates,operations and services of any gas utility operating in the City,
passed Resolution 5330-01-2021 (M&C 21-0038)to suspended the effective date for 90 days,giving the City until June 12,2021 to evaluate the
application and take final action.The City joined with the other cities(collectively the"CoSery Gas Cities")to conduct a review of the Company's
application by hiring and directing legal counsel and consultants to prepare a common response and negotiate with the Company and direct any
necessary litigation. The Company agreed to extend the proposed effective date to March 14,2021,with a statutory deadline of August 10,2021.
CoSery Cities and the Company representatives recognized that the cost to litigate this case before the RRC would be prohibitively expensive for
CoSery Gas customers,so parties sought to reach a settlement. On or about May 14,2021,a Settlement Agreement was reached between
CoSery Gas Cities and the Company,which resolved all issues relating to the CoServ's Statement of Intent to Increase Rates. The rates,terms
and conditions established by the Settlement Agreement shall be effective for meters read on or after the effective date of the Commission's Final
Order.
The Settlement Agreement reduces the Company's requested rate increase of$11,500,000.00 down to$6,250,000.00 million representing a
45.6%reduction to the Company's request. Additionally,the settlement agreement provides for a 9.5%return on equity rather than the Company's
requested 11.5%return on equity. Finally,the settlement agreement provides for a customer charge of$15.00,compared to the Company's
original$18.50 request.The commercial and public authority customer charge will be$35.00,versus the Company's original$43.50 request.
The attached Ordinance approves the Settlement Agreement reached between the CoSery Gas Cities and the Company,finds that the rates
agreed to in the Settlement Agreement are just and reasonable,orders the Company to implement the rates agreed to in the Settlement
Agreement,and reimburse the City's reasonable rate case expenses stated in the settlement agreement.
The following tables show current and recommended rates:Comparison of current rates adopted by Ord. No. 18818-09-2009;effective October 1,
2009;requested and recommended Residential and Commercial rates provided in the Settlement Agreement reached between CoSery Gas
Cities and the Company on or about May 14,2021
RESIDENTIAL
PRESENT RECOMMENDED
Customer Charge $7.00 $15.00
Volumetric Charge(per Ccf)
Up to 20 Ccf $0.20 1$0.12097
Next 50 Ccf $0.20 1$0.12097
RES DENT AL
All Additional Ccf II$0.20 I1$0.12097
COMMERC AL
PR SENT RECOMMENDED
Customer Charge $13.50 $35.00
Volumetric Charge(per Ccf)
Up to 300 Ccf 11$0.23 $0.06479
Next 200 Ccf $0.23 11$0.06479
All Additional Ccf $0.23 1$0.06479
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that this action will have no material effect on City Funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Steve Cooke 5134
Additional Information Contact: Juanita Rigsby 8518
Expedited