HomeMy WebLinkAboutORD 1994-086 � ORDINANCE NO. 94-86
'�� � AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE,TEXAS REVISING THE RATES OF LONE STAR
GAS COMPANY IN THE CITY OF GRAPEVINE, TEXAS;
PROVIDING FOR CONDITIONS AND REPEAL OF
CONFLICTING ORDINANCES; DECLARING AN
EMERGENCY AND PROVIDING AN EFFECTIVE DATE
WHEREAS, on May 11, 1994 Lone Star Gas Company ("LSGC") filed
with the City of Grapevine ("CITY") a request for an increase in gas utility rates to be
charged within CITY in the amount of 593,189 per annum within the Mid-Cities
Distribution System; and
WHEREAS, CITY, having suspended the effective date of such proposed
increase for a period of time necessary and authorized by law, including time for the
continuation of a hearing in progress pursuant to Section 5.08(d) of the Gas Utility
Regulatory Act (GURA), or alternatively, pursuant to its authority under Section 5.07
of GURA, and having considered the same after reasonable notice and public hearing,
�} and findings as to the unreasonableness of the current rates, is of the opinion and
finds that the rates of LSGC should be adjusted;
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NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS:
Section 1 . That the rates, tariffs and charges for LSGC for gas service sold
within the CITY be revised to decrease 5 66,920 annually, which is a component of
the Mid-Cities Distribution System annual revenue increase of 5675,635. Such
schedules of rates, as are approved in accordance herewith, are those under which
said LSGC shall be authorized to render gas service and to collect charges from its
customers for the sale of gas service and energy within the corporate limits of CITY
until such time as said Rate Schedules may be changed, modified, amended or
withdrawn, with the approval of the City Council. This ordinance also approves the
elimination of the Rate Schedule for Public Free Schools- N and the placement of
these customers receiving said rate on the commercial rate set forth in the schedules
and tariffs filed with CITY.
33 Section 2. The rates approved hereby fix the overall revenues of LSGC at a
level which will permit LSGC a reasonable opportunity to earn a reasonable return on
both its original and adjusted value invested capital used and useful in rendering
,� N, service to the public over and above LSGCs reasonable and necessary operating
expenses. The rates approved hereby are just and reasonable.
Section 3. The rates approved hereby shall be effective with the gas bills
rendered on and after October 20, 1994, and enforced as of the date hereof, and shall
be charged and observed thereafter until revised according to law.
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Section 4. That LSGC shall file with CITY within ten (10) days hereof a revised
Schedule of Rates and Tariffs setting forth those rates, tariffs, and charges based
upon such increase in total operating revenues as prescribed herein. The rate design
implemented by such schedules and tariffs shall be in accordance with Schedule 3,
attached hereto. Such Sched�le of Rates and Tariffs may be modified or amended by
the City Council within ten (10) days from the date of filing with CITY, otherwise
same shall be considered approved as filed.
Section 5. LSGC shall reimburse CITY its costs for consultants and shall also
reimburse CITY its reasonable costs for participation in any appeal of this rate case.
Section 6. Any LSGC request for modification of existing tariffs, rates or
schedules not specifically addressed herein, is denied. However, all adjustment
clauses, except the gas cost adjustment clause, and the adjustment clause for
changes in municipal franchise fees, are specifically denied.
Section 7. That the action of the City Council enacting this ordinance
constitutes, on the date of its final passage, a final determination of rates for LSGC
� within CITY in accordance with the Gas Utility Regulatory Act.
�. .., Section 8. Nothing contained in this ordinance shall be construed now or
hereafter as limiting or modifying, in any manner, the right and power of CITY under
the law to regulate the rates and charges of LSGC.
Section 9. That all ordinances, resolutions, or parts thereof, in conflict
herewith, are repealed to the extent of such conflict.
Section 10. The fact that the present ordinances and regulations of the City
of Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals,
peace and general welfare of the inhabitants of the City of Grapevine, Texas, creates
an emergency for the immediate preservation of the public business, property, health,
safety and general welfare of the public which requires that this ordinance shall
become effective from and after the date of its final passage, and it is accordingly so
ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 18th day of October , 1994.
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ORD. N0. 94-86 2
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APPROVED:
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William D. Tate
Mayor
ATTEST:
cu
L�n Huff
City Secretary
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APPROVED AS TO FORM:
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John F. Boyle, Jr.
City Attorney
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ORD. N0. 94-86 3
SCHEDULE 3
LONE STAR GAS COMPANY Exhibit "A" to Ord 94-86
PROOF OF REVENUE CALCULATION Page 1 of 1
AND RATE DESIGN CALCULATION
'�' ° RESIDENTIAL RATE PROOF
CUSTOMER CHARGE $5.00 '
"�'"� NUMBER OF CUSTOMERS 64,241
NUMBER OF BILLS 770,892
CUSTOMER CHARGE REVENUES S3,854,460
COST OF GAS BASE RATE !55,2401 :
COST OF GAS S4.02
QUANTITY OF GAS (MCFI 5,061,483
DISCOUNTED OFF PEAK GAS (MCF) 106,935
GAS SALES REVENUES 526,495,964
TOTAL RESIDENTIAL REVENUES 530,350,424
RESIDENTIAL REVENUE REQUIREMENT S30,350,424
DIFFERENCE S SO
COMMERCIAL RATE PROOF
CUSTOMER CHARGE 510.00'>
NUMBER OF CUSTOMERS 6,374
�""°'' NUMBER OF BILLS 76,488
CUSTOMER CHARGE REVENUES S764,880
COST OF GAS BASE RATE- 1 ST BLOCK 'S5,5116
____ __ _ _,
2ND BLOCK _;!$5,21;16 ":
3RD BLOCK I $5,1,16
COST OF GAS S4.02
QUANTITY OF GAS (MCF) 1 ST BLOCK 700,581
2ND BLOCK 71,201
3RD BLOCK 2,681,165
TOTAL QUANTITY OF GAS 3,952,947
GAS SALE REVENUES S20,543,236
TOTAL COMMERCIAL REVENUES 521,308,116
f COMMERCIAL REVENUE REQUIREMENT S21,308,022
DIFFERENCE S 394
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ORD. N0. g4-86