HomeMy WebLinkAboutIR 7912 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7912
��RTEa�o May 2, 1995
To the Mayor and Members of the City Council
P
TEXp Subject: LONE STAR GAS COMPANY'S REQUEST TO INCREASE
1873 LOCAL GAS RATES - FILED APRIL 19, 1995
On April 19, 1995, Lone Star Gas Company (The "Company") filed a request to increase the rates
which it charges for natural gas service in Fort Worth and eighteen other cities in its Fort Worth
Distribution System. The Company proposes to increase rates by approximately 7.25%, effective
on May 25, 1995, thirty-five days after the date of filing.
Under the Gas Utility Regulatory Act(the"Act"),the City Council has original jurisdiction over the
rates of gas utilities. Secondary or appellate jurisdiction rests with the Railroad Commission of
Texas.
Before the City Council makes a decision concerning a rate request, the Act provides that the
Council shall investigate the need for an increase and hold a public hearing. The Act authorizes the
City Council to engage consultants to assist in its study of the rate request and requires that the
utility pay the cost of the study.
The Act also authorizes the City Council to suspend operation of the increased rates for 90 days
beyond the initial 35 days when the rates would ordinarily go into effect. Such additional time is
to allow Council to study the request. After the 90 day suspension, the Company is authorized to
place the proposed rates into effect under bond. A portion of the rates placed into effect under bond
is refundable to gas customers if final rates, as a result of any appeal, are lower than the rates under
bond.
Staff is examining the Company's current rate request. At the City Council meeting on May 9, 1995,
Staff will make a recommendation to City Council concerning suspension of the proposed rates, the
engagement of a consultant and related matters.
Basic gas rates in Fort Worth have not changed since 1991 when the present rates took effect. In the
1991 rate case, City Council suspended the rate increase and authorized the engagement of William
McMorries and Associates as consultants to analyze the request. On May 28, 1991, Council
approved an increase recommended by the consultants that was less than the Company's original
request. The Company did not appeal the Council's decision.
OFFICIa RLCORD. w
Bob Terrell Cny SECRETARY
City Manager ' WOR11,19 TEX.
ISSUED BY THE CITY MANAGER - - — FORT WORTH, TEXAS--- -