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HomeMy WebLinkAboutOrdinance 7238 ORDINANCE NO. 1) 3 AN ORDINANCE REGULATING THE RATES AND CHARGES OF ALL PERSONS, FIRMS, CORPORATIONS OR ASSOCIATIONS OF PERSONS ENGAGED IN THE BUSINESS OF FURNISHING, DISTRIBUTING OR DELIVERING NATURAL GAS TO RESIDEN- TIAL AND COMMERCIAL CUSTOMERS IN THE CITY OF FORT WORTH, TEXAS; REPEALING THE RATE SETTING PROVIS- IONS OF ORDINANCES NOS. 6715 AND 5308; PROVIDING A PENALTY FOR THE VIOLATION HEREOF; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, by City of Fort Worth Ordinance No. 5299, adopted December 21, 1964, Lone Star Gas Company was granted a franchise to use the streets, alleys and public thorough- fares of the City in the operation of its business as a gas utility for a term of 25 years; and WHEREAS, by City of Fort Worth Ordinance No. 6715, adopted August 28, 1972, the rates to be charged Fort Worth commercial and residential consumers of natural gas for all uses except air conditioning were last set; and WHEREAS, by City of Fort Worth Ordinance No. 5308, adopted November 1, 1965, special rates for Fort Worth resi- dential and commercial consumers of natural gas for air con- ditioning were last set; and WHEREAS, heretofore, on about July 9, 1975, Lone Star Gas Company made application for authorization to increase its charges of and to all its residential and commercial customers in the City of Fort Worth; and WHEREAS, hearings have been held on the said application by Lone Star Gas Company at which all interested parties were given a full opportunity to be heard on the requested rate increase; and WHEREAS, after a thorough consideration of all the facts made available to it, the City Council finds: 1. That Lone Star Gas Company was granted an increase in its gate rate by the Railroad Commission of Texas in the opinion and order of said Commission filed on June 30, 1975, in GUD No. 588; and 2. That said order of the Railroad Commission of Texas found, inter alia, that Lone Star Gas Company experienced a weighted average cost of purchased gas during February, 1975, of 72.29 cents per Mcf; that the fair value of Lone Star's Transmission Division's plant and property used and useful in rendering domestic and commercial natural gas service to the cities, towns and villages in Texas, (Rate Base) was $162,045,665; that Lone Star Gas Company was entitled to an 8% return as a fair rate of return on the fair value rate base found; that a city gate rate of $1.0399 per Mcf would produce the approximate rate of return to which it found Lone Star entitled so long as the weighted average cost of purchased gas remained at 72.29 cents per Mcf; and that a gas cost adjustment rule was necessary in the public interest and, therefore, an increase or decrease in the authorized gate rate of $1.0399 per Mcf is authorized by 85% of the amount by which Lone Star's weighted average cost of purchased gas during the base period (of any given month) is more or less than 72.29 cents per Mcf as computed in accordance with the gas cost adjustment formula details set out in Exhibit "A" to said Order in GUD No. 588; and -2- 3. That Lone Star Gas Company's current application for authorization to increase its charges of and to all of its residential and commercial customers in the City of Fort Worth seeks merely to pass on to such customers the gate rate increase previously authorized by the Railroad Commission of Texas in the opinion and order of said Commission filed on June 30, 1975, in GUD No. 588; and 4. That the rates requested by Lone Star Gas Company in its application of July 9, 1975, will produce a fair and reasonable rate of return on its property used and useful in providing natural gas service to the residential and commercial consumers thereof in the City of Fort Worth, to which said Company is entitled; provided, the gate rate is permitted to fluctuate in accordance with the Gas Cost Adjustment Rule set forth in Exhibit "A" to the Railroad Commission's order of June 30, 1975, in GUD No. 588; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1 All previously adopted rates and charges for gas service to residential and commercial customers in the City of Fort Worth and specifically those rate setting provisions of City of Fort Worth Ordinances Nos. 6715 and 5308 are repealed effective upon adoption and publication of the rates and charges hereinafter specified according to law. SECTION 2 All persons, firms, corporations or associations of persons engaged in the business of furnishing, distributing or delivering -3- natural gas to residential and commercial consumers in the City of Fort Worth are hereby authorized to charge for said service in accordance with the following schedules: A. For Service Exclusive of Consumption for Air Conditioning Purposes First 1,000 Cu. Ft. or Fraction Thereof $2.4610 Gross; $2.2149 Net. Next 3,000 Cu. Ft. at $1.8388 per Mcf Gross; $1.6549 Per Mcf Net. Next 6,000 Cu. Ft. at $1.7721 per Mcf Gross; $1.5949 Per Mcf Net. Next 15,000 Cu. Ft. at $1.7277 Per Mcf Gross; $1.5549 Per Mcf Net. Next 25,000 Cu. Ft. at $1.6832 Per Mcf Gross; $1.5149 Per Mcf Net. Next 50,000 Cu. Ft. at $1.6277 Per Mcf Gross; $1.4649 Per Mcf Net. Over 100,000 Cu. Ft. at $1.6054 Per Mcf Gross; $1.4449 Per Mcf Net. B. For Consumption for Air Conditioning Purposes (1) For quantities of natural gas less 8,000 cubic feet consumed by residential customers using gas for air conditioning purposes during billing periods between the meter reading dates in May and October of each year, the rates prescribed in Section2A of this Ordinance shall be charged. (2) For quantities of natural gas in excess of 8,000 cubic feet consumed by residential customers using gas for air conditioning purposes during billing periods between the meter reading dates in May and October of each year: $0.05933 gross per 100 cubic feet. $0.05340 net per 100 cubic feet. (3) For quantities of natural gas separately metered and consumed by commercial customers for air conditioning purposes during billing periods be- tween the meter reading dates in May and October of each year, the rate shall be that shown in B(2) above. (4) For quantities of natural gas not separately metered and consumed by commercial customers for air condi- tioning purposes during billing periods between the meter reading dates in May and October of each year, the rate shall be that shown in B(2) above applied to volumes computed as follows: June 8 Mcf per nominal ton installed capacity July 9 Mcf " August 9 Mcf " September 8 Mcf " October 5 Mcf " -4- Installed capacity shall mean name-plate capacity of the plant normally and regularly used for maximum conditions and does not include standby or unused facilities. The Mcf so computed shall not exceed 95% of the total monthly consumption. All gas consumed in excess of the quantities determined above shall be billed in accordance with Section 2A of this ordinance. C. Special Provisions and Adjustments (1) No gas bill will be rendered to any residential or commercial consumer served under the above rates not consuming any gas during any monthly billing period, except that where customer 's only use of gas service is for an outdoor grill and/or a fireplace starter, the rate specified for the initial increment of consumption (the 1000 cu. ft, rate step) in paragraph 2A of this ordinance, shall constitute a minimum monthly bill. (2) Net rate shall apply to all bills paid within ten (10) days from monthly billing date; gross rate shall be applicable thereafter. (3) The above rates are applicable to each residential and commercial consumer per meter per month or for any part of a month for which gas is used at the same location. (4) In addition to the aforesaid rates, Company shall have the right to collect such reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regu- lations in effect. (5) The amount of each net monthly bill computed at the above rates shall be subject to the follow- ing adjustments: (a) Plus or minus the amount of any increase or decrease, respectively, above or below the $1.0399 per Mcf level specified by the Railroad Commission of the State of Texas, as the intra-company city gate charge, such amount of increase or decrease being either specifically authorized as a prospective in- crease in the intra-company city gate charge by the said Railroad Commission of Texas or such prospective increase or decrease being computed and arrived at utilizing actual purchased gas costs and the Purchased Gas Cost Adjustment Rule as contained in Exhibit "A" to the Railroad Commission of -5- Texas Order in.GUD No. 588 dated June 30, 1975; Provided, however, no increase may ever be applied retroactively, i.e. to gas already used and con- sumed, and no increase may exceed by thirty-three and one-third percent (33 1/3%) the purchased gas cost figure of 72.29 cents per Mcf utilized in arriving at the current intra-company gate charge of $1.0399 without specific approval of the City Council. Company shall credit to current resi- dential and commercial customers any amount collected pursuant to the Purchased Gas Cost Adjustment Rule which is subsequently determined to be excessive, invalid or unreasonable by order of the Railroad Commission or by final judgment of a court of last resort to which the Company shall have the right of appeal. (b) Plus an amount equivalent to the proportionate part of any new tax or increased tax, or any other governmental imposition, rental, fee or charge (except State, County, City and special district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to July 1, 1975, upon or allocable to the Company's distri- bution operation by any new or amended law, ordi- nance or contract. (c) Each gross monthly bill shall be adjusted propor- tionately. Company, at its option, may forego the application of any adjustment if such adjust- ment would result in an increase in the monthly bill; however, failure of Company to apply any adjustment shall not constitute a waiver of Company's rights from time to time, or at any time, to make any adjustment, in whole or in part, in any subsequent monthly bill that may be appli- cable to such bill. (d) No adjustment shall become effective until thirty (30) days after Company shall have advised the Director, Consumer Affairs Division in writing of its intention to make such adjustment; whereupon, the Director shall immediately notify the City Council of any such proposed adjustment, giving his recommendation thereon. SECTION 3. That any person, firm or corporation who refuses to comply with the terms and provisions of this ordinance shall be deemed guilty of a misdemeanor and, upon conviction, may be fined not to exceed Two Hundred Dollars ($200) , and each day's violation shall constitute a separate offense. SECTION 4. That this ordinance shall take effect on and after the date -6- (Revised) of its passage and publication as required by law. APPROVED AS TO FORM AND LEGALITY: a City Attorney ADOPTED C ",2� V3 l 9 T5 -7- City of "or or l , Texas Mayor and Council Communication DATE REP' ENCE SUBJECT: Application for Kate Increase � PAGE NUhTe 9/29/75 G-2828 tone Stour Gas Company x of On July 9, 1975, lone Star Gas C ` pany requested approval of an increase in, local gars rates to reflect the latest "City Gate Rate" order of the Texas Rail- road Commission, which became effective July 1, 1975. µ,Clue stall" has concluded ea analysis i of the Company's request, and the findings are included in the attached report entitled "Analysis of Lone Star Gas Company date Request, dated September 19, 1975, The stat'l us recd endations for approval of the request are ;provided on Page 21 of this report, An ordinance has been prepared which provides that the new rates shall be effective "on and alter passage and publication as required by law". The Charter requires publication for five days after passage. The new rates would a ulul,„y to gas consu med, of ter required publication of the ordinance, viz. approximately Octoiber atlu which ich would be billed about 30 days thereafter. On July 22, 1,975, Council Policy No. 1, "Establlslruuent of a Citizens public Utilities Advisory ;Board" was unanimously approved by the City Council, he City"s Public Utilities Advisory Board met on Tuesday, September 23, 1975, and recessed and continued the meeting until Thursday, September 25, 1:975, In the meet, nS of September 25th, the Board unanimously approved a resolution with respect to this Lone Star Gas Compaty request, as well as future actions. This resolution is in.cluded in the minutes of the meeting of September 25, 1975, beginning on 'Page 5. Recommendation, It is recd ended that the attached ordinance, be approved establishing llshing a new gas rate schedule, which, ap roves the; increased City Gare Rate authorized by the Texas Railroad Commission, as requested by lone 'Star Gas Company. M zuuus Attac'luuents �° Ca U,NCIL. PRO BED BY B�aBwAMTTE�d BY t918PC�' �'f"d »aBY , SECRETARY DATE CITY MANAGER , .