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HomeMy WebLinkAboutOrdinance 18818-09-2009ORDINANCE NO 18818-09-2009 AN ORDINANCE ESTABLISHING MAXIMUM PERMITTED RATES AND CHARGES THAT COSERV GAS, LTD MAY ASSESS CUSTOMERS IN THE CITY OF FORT WORTH, ADOPTING DECLARATIONS AND FINDINGS RELATED TO RATES AND CHARGES ASSESSED TO CUSTOMERS IN THE CITY OF FORT WORTH, REPEALING ANY PREVIOUSLY ADOPTED ORDINANCES IN CONFLICT HEREWITH, PROVIDING FOR SEVERABILITY AND PROVIDING AN EFFECTIVE DATE. WHEREAS on December 18 2008 CoServ Gas, Ltd. ("CoServ Gas") filed with the City a `Statement of Intent to Increase Gas Utility Rates" ("Rate Filing") under which proposed increased rates charged by CoServ Gas would go into effect m the City on January 23 2009• and WHEREAS, pursuant to Section 104 107 of the Texas Utilities Code, on January 13 2009 the City Council adopted Ordinance No 18440-01 2009 suspending implementation of CoServ Gas s proposed rate schedule from January 23 2009 until the later of April 23 2009 or the latest date permitted by law• and WHEREAS, pursuant to M&C G-16423 on January 13 2009 the City Council authorized participation by the City m the Steering Committee of Cities Served by CoServ Gas (the `Steering Committee") for assistance m CoServ Gas rate cases, including the retention of consultants and outside legal counsel associated with such assistance; and WHEREAS, pursuant to a letter agreement with the Steering Committee, CoServ Gas extended the implementation date of its proposed rate schedule, as extended by operation of Ordinance No 18440-01 2009 to September 20 2009• and Page 1 of 6 CoServ Gas Gas Rate Ordinance WHEREAS, the Steering Committee and its lawyers and consultants reviewed the Rate Filing and have concluded that the rates proposed by CoServ Gas m its Rate Filing, as well as rates currently charged by CoServ Gas, are unreasonable; and WHEREAS the Steering Committee, including the City wishes to avoid the litigation expenses that would result from a contested rate case proceeding before the Railroad Commission, and WHEREAS, m accordance with the regulatory framework established by the Texas Uhhties Code and rules of the Railroad Commission of Texas (the `Railroad Commission'), the Steering Committee and CoServ Gas have agreed to rates that should be charged by CoServ Gas m lieu of existing rates and the rates proposed m the Rate Filing, which are set forth m the tariffs m Attachment A of this Ordinance, which is hereby made a part of this Ordinance for all purposes, and ~ WHEREAS the CoServ Cities have incurred rate case expenses of $59 439 00 and CoServ Gas has incurred rate case expenses of $325 655 00• and WHEREAS pursuant to Chapters 103 and 104 of the Texas Utilities Code, before the City Council can adopt an order implementing the rates agreed to the City is required to conduct a public hearing at which all interested parties were gzven a full opportunity to comment on the Rate Filing and the rates proposed in this Ordinance (the `Public Hearing") and WHEREAS, the Public Hearing was conducted on September 15 2009' and NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS Page 2 of 6 CoServ Gas Gas Rate Ordinance Section 1 FINDINGS. That the City Council, pursuant to its exclusive original ~urisdicrional authority over the rates, operations and services of CoServ Gas within the City and m the exercise of rts sound legislative discretion, makes the following findings of fact: 1 1 The statements set forth in the Recitals above are true and correct and are hereby incorporated as part of the findings herein. 1.2. Based on all information previously provided to the City Council and all information currently before the City Council, the City Council hereby finds that the rates proposed by CoServ Gas in its Rate Filing are unreasonable. 1.3 Based on all information previously provided to the Crty Council and all information currently before the Crty Council, the City Council hereby finds that the tariffs attached hereto as Attachment A are dust and reasonable. 14 Based on all information previously provided to the City Council and all information currently before the City Council, the City Council hereby finds that the CoServ Cities rate case expenses of $59 439 00 which includes rate case expenses of the Crty are dust and reasonable. 1.5. Based on all information previously provided to the City Council and all information currently before the City Council, the City Council hereby finds that CoServ Gas s rate case expenses of $325 655 00 are dust and reasonable. Page 3 of 6 CoServ Gas Gas Rate Ordinance Section 2. RATES AND CHARGES ORDERED That based on the findings of fact set forth m Section 1 of this Ordinance, CoServ Gas is hereby authorized and ordered to implement the tanffs attached hereto as Attachment A. The effective date of the new tanffs is October 1 2009 Section 3. RATE CASE EXPENSES. CoServ Gas is hereby ordered to reimburse the City its share of reasonable rate case expenses, as outlined m Section 1 4 Such reimbursement may be made through a reimbursement to the CoServ Cities of all rate case expenses incurred by the CoServ Cities. CoServ Gas is hereby authorized to recover its reasonable rate case expenses, as outlined in Section 1 5 m accordance with Rate Schedule 9 which is set forth m Attachment A hereto Section 4 REPEAL OF ORDINANCES IN DIRECT CONFLICT 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. Page 4 of 5 CoServ Gas Gas Rate Ordinance Section 5. SEVERABILITI' 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 m full force and effect and shall not m any way be impaired or affected by such decision, opinion or Judgment. Section 6. EFFECTIVE DATE. This Ordinance shall take effect and be m full force and effect from and after the date of rts adoption. The City Secretary is hereby directed to deliver a certified copy of this Ordinance to CoServ Gas, Ltd. Attn. Charles D Harrell, Chief Financial Officer 7701 South Stemmons, Corinth, Texas 76210-1842, and to the Steering Committee s outside legal counsel, Geoffrey Gay Lloyd Gosselink Blevins Rochelle & Townsend, P C P O Box 1725 Austin, TX 78767 1725 AND IT IS SO ORDAINED Page S of 6 CoServ Gas Gas Rate Ordinance ADOPTED AND EFFECTIVE September 15, 2009 APPROVED AS TO FORM AND LEGALITY By Peter Vaky Assistant City Attorney Date• ~-/6 -D 9 Page 6 of 6 CoServ Gas Gas Rate Ordinance TARIFF FOR GAS SERVICE CoServ Gas, Ltd. ORDINANCE NO 18818-09-2009 Attachment A TARIFF FOR GAS SERVICE CoServ Gas, Ltd. ORDINANCE NO 18818-09-2009 Rate Schedule 1 TABLE OF CONTENTS Applicable to Entire System Page 1 of 1 Effective Date• Rate Schedule 1 2 3 4 5 6 8 9 10 11 12 13 14 Description TABLE OF CONTENTS UTILITY OPERATIONS CITY AND COUNTY SERVICE AREAS DEFINITIONS RATE R -RESIDENTIAL SALES RATE C -COMMERCIAL SALES RATE PGF -PURCHASED GAS FACTOR RIDER PSF -PIPELINE SAFETY FEE RIDER RCE -RATE CASE EXPENSES RIDER WNA -WEATHER NORMALIZATION ADJUSTMENT RATE M -MISCELLANEOUS SERVICE CHARGES RATE Q -QUALITY OF SERVICE RATE CP -CURTAILMENT POLICY RATE DEP -CUSTOMER DEPOSITS TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 2 UTILITY OPERATIONS Applicable to Entire System Page 1 of 1 Effecrive Date: CoServ Gas, Ltd. owns and operates a natural gas distribution system that provides natural gas service m Texas. The following will respond to mqumes regarding provisions of this Tanff for Gas Service• Tanff Coordinator CoServ Gas, Ltd. 7701 South Stemmons Corinth, Texas 76210 Telephone• (940) 321 7800 Email Address tariff@coserv coin TARIFF FOR GAS SERVICE C®Serv Gas, Ltd. Rate Schedule 3 CITY AND COUNTY SERVICE AREAS Applicable to Entire System Page 1 of 1 Effective Date CITIES & TOWNS Allen Argyle Bartonville Celina Connth Cross Roads Denton Double Oak Fairview Flower Mound Fort Worth Fusco Highland Village Little Elm Lewisville Lucas McKinney Murphy Parker Plano Ponder Prosper St. Paul Shady Shores The Colony Wylie COUNTIES Denton Collin Kaufinan TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 4 DEFINITIONS Applicable to Entire System Page 1 of 1 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 Urilrties Code. COMMISSION The Railroad Commission of Texas COMPANY CoServ Gas, Ltd. its successors, and its assigns CUSTOMER An individual, family partnership association, point venture, corporation, etc. or governmental agency who is receiving or who is receiving the benefit of gas service at a specified point of delivery 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 m the rate schedule, a customer whose service is separately and individually metered m an individual pnvate Dwelling Unrt or in an individually metered apartment, condominium, or similar dwelling and who uses natural gas pnmanly for Residential End Uses and occupies the building. RESIDENTIAL END USES Heating, space heating, cooking, water heating, and other similar type uses m a dwelling. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 5 RATER RESIDENTIAL SALES Applicable to Entire System Page 1 of 2 Effective Date• Application of Schedule Schedule applies to all Residential Customers. Monthly Base Rate Customer's base monthly bill will be calculated using the following Customer and Ccf charges. Charge Customer Charge Amount $ 7 00 per month, plus Volumetric Charge Purchased Gas Factor $ 19771 per Ccf In addition to the base monthly bill above, each customer's bill will include a Purchased Gas Factor to account for purchased gas costs and computed in accordance with Rate PGF Purchased Gas Factor Taxes In addition to the monthly charges above, 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 apphcabilrty 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 CoServ Gas, Ltd. Rate Schedule 5 RATER RESIDENTIAL SALES Applicable to Entire System Page 2 of 2 Effective Date Surcharges In addition to the monthly charges above, each customer's bill will include an amount for surcharges calculated m accordance with the applicable nder(s) Rider PSF and Rider RCE. Line Extension Policy The company has the nght to contract with mdrvidual 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 serviceman area served by CoServ Gas, CoServ Gas will extend its main fines up to 100 feet from an existing CoServ Gas main m 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 m 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 m item 12, Line Extension and Installation, of Rate M, Miscellaneous Service Charges. CoServ 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 CoServ Gas, Ltd. Rate Schedule 6 RATE C COMMERCIAL SALES Applicable to Entire System Page 1 of 2 Effective Date Apuiication of Schedule Schedule applies to all commercial customers. Monthly Base Rate Customer's base monthly bill will be calculated using the following Customer and Ccf charges Charge Customer Charge Amount $13.50 per month, plus Volumetric Charge Purchased Gas Factor $.23043 per Ccf In addition to the base monthly bill above, each customer's bill will include a Purchased Gas Factor to account for purchased gas costs and computed in accordance with Rate PGF Purchased Gas Factor Taxes In addition to the monthly charges above, 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 distracts, 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 CoServ Gas, Ltd. Rate Schedule 6 RATE C COMMERCIAL SALES Applicable to Entire System Page 2 of 2 Effective Date• Surcharges In addition to the monthly charges above, each customer's bill will include an amount for surcharges calculated m accordance with the applicable nder(s) Rider PSF and Rider RCE. Line Extension Policy The company has the nght to contract with. individual customers for the installation of gas facihhes as provided for by the city franchise. Upon the request of a prospective new residentral or commercial customer for serviceman area served by CoServ Gas, CoServ Gas will extend its main lines up to 100 feet from an existing CoServ Gas main m 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 m excess of 100 feet shall bear the cost of any additional main, and shall bear the cost of all yard lines, service fines, customer meters and regulators, and appurtenant equipment, in accordance with the charges listed m item 12, Lme Extension and Installation, of Rate M, Miscellaneous Service Charges. CoServ 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 CoServ Gas, Ltd. Rate Schedule 7 RATE PGF -PURCHASED GAS FACTOR Applicable to Entire System Page 1 of 5 Effective Date• Purpose and Intent This provision is intended to allow collection of the gas purchase costs of CoServ Gas, Ltd. (hereinafter `CoServ Gas" or the `Company") m 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. Applicability This clause shall apply to all CoServ 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 infected 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. 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 TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 7 RATE PGF -PURCHASED GAS FACTOR Applicable to Entire System Page 2 of 5 Effective Date• Billed Gas Revenues -The total amount of revenues attributable to billings by CoServ for Purchased Gas Costs during a given penod, exclusive of any billings for any Reconciliation Factor dunng the same penod. 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 m dollars per Ccf, to reflect the Purchase Gas Costs and the Reconciliation Factor all as more specifically described herein. Annual Review Period -The 12 month penod ending June 30 of each year Annual Review - An annual review of the Company's records covering the 12 month penod 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, m 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 m billings for any over or under collections on an annual basis, inclusive of interest. Record Keeping The Company shall keep accurate records of all gas metered in and out of its system, gas purchases, and Company-owned gas mJected 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 hrnrted 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 charges (both volumetric and demand), and gas storage charges (both volumetric and demand) TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 7 RATE PGF -PURCHASED GAS FACTOR Applicable to Entire System Page 3 of 5 Effective Date• The Company shall account for gas infected into 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 esrimated Weighted Average Cost of Gas for the penod covered by the bill, which estimate shall include, as applicable, apro-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. 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 Perod. As hmrted 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 1 following the Annual Review Penod. 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 hne gam), 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 Penod shall be determined, TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 7 RATE PGF -PURCHASED GAS FACTOR Applicable to Entire System Page 4 of 5 Effective Date: Minus, the Purchased Gas Costs attributable to LUG volumes m excess of 5% of the Purchase Gas Volumes, using the Company's Weighted Average Cost of Purchased Gas for the Review Penod. 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 12. The annual interest rate shall be the 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 tanff, as such rate is m effect dunng the last month of the Annual Review Penod. The total interest to be collected or paid over the 12-month penod shall be added to the Annual Imbalance Total. The resulting total shall then be divided by 12 to detennme the total amount to be credited or surcharged each month. Each month of the twelve-month reconciliation penod, the Reconciliation Factor expressed m Ccfs, shall be calculated by dividing the sum of amount to be credited or surcharged dunng that month (which amount shall include, as necessary an amount to correct for any previous over or under-estimates of Billed Gas Volumes dunng the previous month or months in the same reconciliation penod), by the estimated Billed Gas Volumes for the month. At the end of each 12 month penod, any remaining balance in the Annual Imbalance Total shall be included m any Annual Imbalance Total to be credited or surcharged dunng the successor 12 month period. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 7 RATE PGF -PURCHASED GAS FACTOR Applicable to Entire System Page 5 of 5 Effective Date• 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 PGF -Purchased Gas Factor to date; 4 A tabulation of gas units sold to general service customers and related Rate 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 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. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 8 RIDER PSF -PIPELINE SAFETY FEE Applicable to Entire System Page 1 of 1 Effective Date: Application 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, m accordance with the Commission s rules. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 9 RIDER RCE -RATE CASE EXPENSES Applicable to Entire System Page 1 of 1 Effective Date' Application Applicable to Residential and Commercial customer classes. Monthly calculation The bill of each residential and commercial customer shall include a surcharge designed to recover Company's reasonable rate case expenses, including reimbursement of municipal rate case expenses m accordance with Section 103 022 of the Texas Utilities Code. The surcharge will be calculated on a Ccf basis using total company volumes for Residential and Commercial customers, over a period of thirty six (36) months commencing with the date rates set forth m this revised tariff become effective m the city town or environs area. All collections of the surcharge will be applied monthly to the outstanding uncollected balance of such rate case expenses, and interest at the rate of six (6) percent per year shall be calculated on, and added to, the declining balance each month. To the extent that some expenses may be estimates, Company is authorized to add such expenses as incurred to the amount to be surcharged up to the total estimated expenses of Company and municipalities being reimbursed. Company shall file an annual report with each regulatory authority with ~urisdicrion setting forth recoveries and the remaining balance m the rate expense account. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 10 RIDER WNA -WEATHER NORMALIZATION ADJUSTMENT Applicable to Entire System Page 1 of 2 Effective Date Application Applicable to Residential customers, as well as Commercial customers with annual consumption less than 400 Mcf. Monthly calculation In order to reflect weather variances m a timely and accurate manner the Weather Normalization Adjustment ("WNA') factor shall be separately calculated and adjusted monthly by rate class for each meter reading cycle ("Cycle") Monthly WNA adjustments will be based upon weather information for the periods begmmng with the first Cycle read m November and ending with the last Cycle read m the following May The WNA factor for each Cycle shall be based on the following formula. WNA factor = WNV !CMV WNV is calculated based on the following formula. WNV = (HDD„ /HDDa * HL) - HL Definitions CMV Current Month Volumes billed for the Cycle. HDD„ Normal heating degree days during the Cycle. HDDa Actual heating degree days during the Cycle. HL Heat Load volumes calculated using the following formula. Total volumes for the Cycle less Base Load volumes where Base Load volumes are calculated by multiplying the Base Load per customer as established in the most recent rate case by the number of customers m the Cycle. Monthly Report By the 25~h day of the following month, the Company will file with the Regulatory Authority a monthly report showing the volume adjustments and WNA revenues for each applicable customer class. Supporting documentation will be made available for review upon request. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 10 RIDER WNA -WEATHER NORMALIZATION ADJUSTMENT Applicable to Entire System Page 2 of 2 Effective Date' Annual Report An annual report shall be filed with the regulatory authority for each six month period beginning with November and ending with the subsequent May 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 as established in the most recent rate case multiplied by the number of customers during the penod, (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. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 11 RATE M -MISCELLANEOUS SERVICE CHARGES Applicable to Entire System 'Page 1 of 3 Effective Date. AA 1 The service charges fisted below are m 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 fob or the Company's actual cost plus appropriate surcharges. Applicable Charges Service Amount of Charge Name and Description 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 ariy reason, for the initial inauguration of service, and for each inauguration of service when the billable party has changed, with 1 the following exceptions. $ 65 00 (a) For a builder who uses gas temporarily during construction or for display purposes. (b) Whenever gas service has been temporarily interrupted because of System outage or service work done by Company or c) For any reason deemed necessa for Com an o erations 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 inauguration of service when the billable party has changed, with 2 the following exceptions. $ 97 00 (a) For a builder who uses gas temporarily during construction or for display purposes. (b) Whenever gas service has been temporarily interrupted because of System outage or service work done by Company or (c) For any reason deemed necessary for Company o erations Field Read of Meter A read for change charge when it is necessary for the Company to $ 19 00 3 read the meter at a currently served location because of a change m the billable party TARIFF FOR GAS SERVICE CoServ Gas, Ltd. RATE M -MISCELLANEOUS SERVICE CHARGES Applicable to Entire System Page 2 of 3 Effective Date• Service Amount of Charge Name and Description Charge No. Returned Check Charges 4 Returned check handling charge for each check returned to $ 20 00 Coin any for an 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- NonResidential Whenever service has been temporarily disconnected at the request 6 of the customer this charge plus the appropriate Connection Charge $ 107 00 will be made to reestablish such service for that customer at the same address. 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 so desires. If no such test has been performed within the $ 15 00 previous 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 informed of the result of any test on a meter that services him. Charge for Service Calls During Business Hours A Service Call Charge is made for responding to a service call $ during standard business hours that is determined to be a customer $ 26 00 related problem rather than a Company or Company facilities roblem. 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 Com any or Company facilities problem. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. RATE M -MISCELLANEOUS SERVICE CHARGES Applicable to Entire System Page 3 of 3 Effective Date' Service Amount of Charge Name and Description Charge No. 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 metering facilities or a theft of gas service by a person on the $ 125 00 10 customer's premises or evidence by whomsoever at customer's premises. An additional cost for the cost of repairs. andlor replacement of damaged facilities and the installation of protective facil~hes or relocation of meter are made at cost plus appropriate charges as may be detailed in the Company s Service Rules and Regulations Credit/Debit Card Payments Charge 11 Bill payments using credit cards, debit cards, and electronic checks Actual Cost (includes third- arty transaction fees and administrative costs) Line Extension and Installation Charges Extension and installation of new mains, service lines, risers, fittings 12 and other appurtenant equipment pursuant to main extension policy Actual Cost m municipal franchise Credit for main pursuant to municipal franchise The customer is responsible for the installation of yard line and yard line risers. 13 Construction Crew Charges Actual Cost All labor charges if a construction crew is re uired. 14 Construction Costs Charges Actual Cost All other construction charges. TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 12 RATE Q -QUALITY OF SERVICE Applicable to Entire System Page 1 of 1 Effective Date• CoServ Gas follows the quality of service requirements as set forth m the Commission rules at 16 TAC Sections 7 45 (Quality of Service) and Section 7 460 (Suspension of Gas Utility Service Disconnection Dunng An Extreme Weather Emergency) TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 13 RATE CP -CURTAILMENT POLICY Applicable to Entire System Page 1 of 1 Effective Date CoServ Gas follows the requirements of the order m the Railroad Commission of Texas, Gas Utilities Docket No 489 TARIFF FOR GAS SERVICE CoServ Gas, Ltd. Rate Schedule 14 RATE 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 maybe required of CoServ Gas customers who have been disconnected for nonpayment and later request to be reconnected. Deposits will be determined by estimaring 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. City of Fort Worth, Texas Mayor and Council Communication ~~ COUNCIL ACTION: Approved on' 9/15/2009 -Ord: No:` 18818-09-2009 .. ~.. ~;f ~~ ~ ~~ DATE Tuesday September 15 2009 LOG NAME. 02CSGASRATES REFERENCE NO G-16699 SUBJECT Adopt Ordinance Setting Maximum Permitted Rates and Charges that CoServ Gas Ltd May Assess Customers in the City of Fort Worth RECOMMENDATION It is recommended that the City Council adopt the attached ordinance which sets the maximum permitted rates and charges that CoServ Gas Ltd may assess customers in the City of Fort Worth DISCUSSION On December 7 2004 the City Council adopted Ordinance No 16217 (M&C G-14598) granting CoServ Gas Ltd ("CoServ Gas') a franchise to provide natural gas service to retail customers located within the City Although CoServ's franchise allows the company to provide service anywhere in the City it currently has fewer than 200 customers in Fort Worth all located in COUNCIL DISTRICT 2. A map showing the general location of CoServ Gas customers in Fort Worth is attached to this M&C as Exhibit A. CoServ Gas' rates in Fort Worth have been the same as its system-wide rates since CoServ began providing service in the City On December 18 2008 CoSenr Gas filed with the City of Fort Worth and other cities served by CoServ ("CoServ Cities") a Statement of Intent to Increase Rates CoServ Gas asked the CoServ Cities to approve rate changes that were expected to increase CoServ Gas revenues by $2 9 million an overall total revenue increase of approximately five percent. The proposed effective date for the new rates was January 23 2009 35 days after the filing On January 13 2009 the City Council having original jurisdiction over rates operations and services of any gas utility operating in the City adopted Ordinance No 18440-01 2009 (M&C G-16423) to suspend the effective date of the proposed rates to April 23 2009 and authorized the City Manager to cooperate with the other CoServ Cities to hire and direct legal counsel and consultants negotiate with CoServ Gas make recommendations to the City regarding reasonable rates and to direct any necessary litigation associated with the rate changes filed with the City or with the Railroad Commission CoServ Cities and CoServ Gas representatives recognized that the cost to litigate this case before the Railroad Commission would be prohibitively expensive for CoServ Gas customers so they sought to reach a settlement on the rates To allow more time for negotiations CoSenr Gas agreed to several extensions of the effective date of the proposed rate increase The effective date for CoServ Gas proposed rates was subsequently extended to September 20 2009 Based upon the analysis of consultants hired by the CoServ Cities and additional information supplied by CoServ Gas CoServ Cities determined a range of revenue increases that would be reasonable under the regulatory requirements imposed by state law Accordingly CoSenr Cities have agreed to recommend that the governing bodies of the individual member cities approve and CoServ Gas has agreed to accept, Logname: 02CSGASRATES Page 1 of 2 ~~-~_ an annual revenue increase of $1 3 million This amount is less than 45 percent of CoServ Gas original request. CoServ Gas requested a rate design that would have imposed a flat fee to recover all elements of the cost of service Cities resisted various proposals that would increase base customer charges This settlement produces rates that reflect the same monthly customer charges currently in place for Atmos Energy $7 00 for residential and $13 50 for commercial The following tables show only the current and recommended rates (Bill comparisons of current, requested and recommended Residential and Commercial rates are attached to this M&C as Exhibits B-1 and B-2) Customer Charge Volumetric Charge (per Ccf) Up to 20 Ccf Next 50 Ccf All Addidtional Ccf Customer Charge Volumetric Charge (per Ccf) Up to 300 Ccf Next 200 Ccf All Additional Ccf RESIDENTIAL PRESENT $9 00 RECOMMENDED $7 00 $0 19437 $0 19771 $0 14437 $0 19771 $0 09437 $019771 COMMERCIAL PRESENT $15 50 $0 24436 $0 19436 $014436 $0.23043 $0 23043 $0.23043 Upon adoption of the proposed ordinance including the specific rate tariffs set forth in the attachment to the ordinance the rates negotiated and agreed to between the CoServ Cities and CoServ Gas will become effective October 1 2009 FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that this action will have no material effect on City funds FUND CENTERS TO Fund/Account/Centers CERTIFICATIONS Submitted for City Manager's Office bv: Originating Department Head. Additional Information Contact: FROM FuridlAccountlCenters Fernando Costa (6122) Randle Harwood (6101) Danny Reed (6145) RECOMMENDED $13 50 Logname• 02CSGASRATES Page 2 of 2