HomeMy WebLinkAboutOrdinance 11949
ORDINANCE NO.
AN ORDINANCE SUSPENDING THE RATE INCREASE PROPOSED IN THE
STATEMENT OF INTENT FILED BY LONE STAR GAS COMPANY ON
APRIL 19, 1995, FOR 90 DAYS BEYOND THE INTENDED EFFECTIVE
DATE OF MAY 25, 1995; ADOPTING DECLARATIONS AND FINDINGS
IN PREAMBLE; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on April 19, 1995, the Lone Star Gas Company filed
with the City Secretary of the City of Fort Worth a "Statement of
Intent to Change Rates" as a prerequisite to a proposed change in
gas rates to become effective May 25, 1995, which change is
estimated by the Company to increase its adjusted total operating
revenue in the amount of $4,839,230; and
WHEREAS, under Article 1446e, Gas Utilities Regulatory Act,
and Article 6050 et. seq. R.C.S., the City Council of the City of
Fort Worth is charged with the duty of making a "reasonable
determination of rate base, expenses, investment and rate of return
within the municipal boundaries," of the City of Fort Worth; and
WHEREAS, it is necessary that the proposed rate increase
intended to become effective on May 25, 1995, be suspended as
authorized by Article 1446e, R. C. S . , for 90 days beyond the date on
which the schedule of proposed rates would go into effect;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
SECTION I.
That the rate increase of Lone Star Gas Company proposed to
become effective on May 25; 1995, be and the same is hereby
suspended as authorized by Article 1446e (the Gas Utility
Regulatory Act), Revised Civil Statutes of Texas, for 90 days
EXHIBIT "A" OfFICIAI RECORD
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beyond such date on which the schedule of proposed rates would
otherwise have gone into effect, that is until August 23, 1995.
SECTION II.
That all of the declarations and findings contained in the
preamble of this ordinance are made a part hereof and shall be
fully effective as part of the ordained subject matter of this
ordinance.
SECTION III.
Should any portion, section or part of a section of this
ordinance be declared invalid, inoperative or void for any reason
by a court of competent jurisdiction, such decision, opinion or
judgment shall in no way impair the remaining portions, sections or
parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION IV.
That this ordinance shall take effect and be in full force and
effect from and after the date of its passage, and it is so
ordained.
APPROVED AS TO FORM AND LEGALITY:
City Attorney
Date'
ADOPTED • J '-~'"~~J
EFFECTIVE'.
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City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE I
05/09/95 C-14808 12GAS 1 of 2
SUBJECT SUSPENSION OF LONE STAR GAS COMPANY'S REQUEST TO INCREASE ITS RATES
IN FORT WORTH AND AUTHORIZATION TO ENGAGE CONSULTANT
RECOMMENDATION
It is recommended
That the City Council adopt an ordinance (Exhibit "A") suspending implementation of Lone
Star Gas Company's proposed change in gas rates for 90 days from May 25, 1995, to
August 23, 1995, and
2 That the City Council authorize the City Manager to engage Bill R McMorries, P E to
analyze the Lone Star Gas Company rate increase request, at a fee not to exceed 526,000
DISCUSSION
On April 19, 1995, Lone Star Gas Company Bled its "Statement of Intent to Change Rates" with
Fort Worth and the eighteen other cities which comprise the "Fort Worth Distribution System"
The proposed effective date for the new rates is May 25, 1995, thirty-five days after filing The
Company's application requests new rates that would produce an additional 54,839,230 per
year, an increase of approximately 7 25%
The City of Fort Worth has "Original Jurisdection" over gas utilities operating within its
boundaries The timetable established by the Gas Utility Regulatory Act (G U R A -Art 1446e,
R C S) must be complied with or the proposed rates will automatically go into effect on the 35th
day after filing The G U R.A provides that the requested rate increase can be suspended for
90 days (from May 25, 1995 to August 23, 1995) If no final determination is reached after 90
days, the proposed rates are deemed to be approved and can be placed into effect under bond
The Act permits the use and employment of consultants to assist the City in its study and
analysis of the propriety and effect of the proposed rate increase The G U R A also provides
for reimbursement from the Company to the City for reasonable consultant and other regulatory
costs Background information was provided to the City Council in Informal Report No 7912 on
May 2, 1995
The Department of Law has been in contact with Bill R McMorries, a gas rate consultant located
in Amarillo, concerning this rate request Mr McMorries has indicated his willingness to perform
the technical analysis of the need for the increase and of the propriety of the request so that the
City may act on the Company's request within the 90-day suspension period Mr McMorries
has proposed a fee for his services in an amount not to exceed 526,000 00 Bill McMorries has
been the City's consultant in several cases in past years, including the last gas case in 1991, and
has performed very satisfactorily He is a long-established utility rate consultant and represents
primarily cities and governmental entities before the Public Utility Commission and Railroad
Commission If City Council concurs in retaining a consultant, as it has in the past, the
consultant's expertise will be utilitized to analyze the request and report to the Council Along
~~ Printed on recycled paper
City of Fort Worth, Texas
Mayor and Council Communication
RATE
05/09/95 REFERENCE NUMBER
C-14808 LOG NAME
12GAS PAGE
2 of 2
SUBJECT SUSPENSION OF LONE STAR GAS COMPANY'S REQUEST TO INCREASE ITS RATES
IN FORT WORTH AND AUTHORIZATION TO ENGAGE CONSULTANT
with such report, hearings will be scheduled at several Council meetings to gather citizen input
and Company comment on the proposed rate increase Thereafter, but prior to August 23, 1995,
the Council may take action on the proposed/requested rate increase If the Company is not
satisfied with actions taken by the Council, the Company may appeal to the Railroad Commission
in Austin
An ordinance suspending the proposed rate increase for a period of 90 days to allow expert
analysis, report, hearings and appropriate actions has been prepared and is attached hereto as
Exhibit "A"
FISCAL INFORMATION/CERTIFICATION
The Director of Fiscal Services certifies that funds for this expenditure are available in the current
operating budget of the General Fund
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Submitted for City Manager's FUND ACCOUNT' CENTER AMOUNT CITY SECRETARY
Office by: (to)
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Charles Boswell 8500 ~~
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Originating Department Head:
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Wade Adkins 7623 (from) //
GGO1 531200 0905503 $26,000 00 / '
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For Additional Information ~
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Contact:
Danny Reed 6798
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