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Home My WebLink AboutORD 1989-005 ORDINANCE NO. 89-05 AN ORDINANCE OF THE CITY OF GRAPEVINE, TEXAS, FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF GRAPEVINE, TARRANT COUNTY, TEXAS; PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; APPROVING THE ELIMINATION OF THE RATE SCHEDULE FOR PUBLIC SCHOOLS-N; PROVIDING FOR �,. ,, THE RECOVERY OF ANY CURRENT OR UNRECOVERED PRIOR RATE CASE EXPENSE; PROVIDING FOR A SCHEDULE OF SERVICE CHARGES; PROVIDING FOR A MAIN LINE EXTENSION RATE AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1 . Subject to the following provisos effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits of Grapevine, Texas, by Lone Star Gas Company, a Division of ENSERCH CORPORATION, a Texas Corporation, its successors and assigns, is hereby fixed and determined as set forth in Item A, in the attachment hereto which is incorporated herein. This ordinance also approves the elimination of the Rate Schedule for Public Free Schools-N and the placement of those customers receiving said rate on the commercial rate set forth in Item A in the attachment hereto. Proviso No. (1) : If this ordinance is finally passed and approved before the effective date stated in the Statement of Intent the new rates shall be effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance for the good cause of reducing regulatory lag. Proviso No. (2) : If this ordinance is finally passed and approved after a period of suspension, the new rates shall be billable immediately in order to reduce regulatory lag. This provision is an exercise of the regulatory authority' s discretion to establish . the effective date of rates at anytime after jurisdiction attaches, and its authority pursuant to State law to establish rates for any period of suspension. Section 2 . The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4 . 0200 per MCf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the " intracompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Grapevine Distribution System, according �_ � to Item B, in��the attachment hereto which is incorporated herein. Section 3 . Company shall also receive tax adjustments according to Item C, in the attachment hereto which is incorporated herein. Section 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 regulations in effect. The charges set forth in Items E and F, in the attachment hereto which is incorporated herein, are approved. Services for which no charge is set out may be performed and charged for by Company at a level established by the normal forces of competition. Section 5. In addition to the aforesaid rates, Company is authorized to recover the current and any unrecovered prior rate case expense through a surcharge designed for a six-month nominal recovery period. The surcharge per Mcf will be calculated by °�4� dividing the rate case expense to be recovered by one-half of the adjusted annual sales volume to residential and commercial customers. The Company will provide monthly status reports to �,,:M account for the collections . Section 6 . The rates set forth in this ordinance may be changed and amended by either the City or Company in the manner provided by law. Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the Company' s Rules and Regulations currently on file in the Company' s office. Section 7 . It is hereby found and determined that said meetings at which this ordinance was passed was open to the public, as required by Texas law, and that advance public notice of the time, place and purpose of said meetings was given. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on first reading on this the 17th day of January , lg gg PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on second and final reading on this the 7th day of February , 19 89 APPROVED: � ` _.t. Mayor ATTEST: ac/ C t Secret ry APPROVED AS TO FORM: C� City Attorney ��.. .. EXHIBIT "A" TO ORDINANCE NO. 89-05 LONE STAR GAS COMPANY TARIFFS & SCHEDULES ITEM A. Rates The following rates are the maximum applicable to residential and com— mercial consumers per meter per month or for any part oF a month for ,. _:� which gas service is available at the same location. Residential: Customer Charge $ 5.0000 All Consumption @ 5.6950 Per Mcf If the service period is less than 28 days in a month the customer charge is $0.1785 times the number of days service. Commercial: Customer Charge $ 8.0000 First 20 Mcf @ 5.2019 Per Mcf Next 30 Mcf @ 4.9019 Per Mcf Over SO Mcf @ 4.7519 Per Mcf If the service period is less than 28 days in a month the customer charge is $0.2857 times the number of days service. Bi11s are due and payable when rendered and must be paid within ten days from the monGhly billing date. Residential OfF—Peak Sales Discount: An off—peak sales discount of $.25 per Mcf will apply to residen— �- tial customers volume purchased in excess of 8 Mcf for each of the billing months May through October. ITEM B. Gas Cost Adjustment Each monthly bill at the above rate shall be adjusted for gas cost as follows: (1) The city gate rate increase or decrease applicable to current billing month residential and commercial sales shall be estimated to the nearest $0.0001 per Mcf based upon: (a) A volume factor of 1.0353 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes. (b) The city gate Yate estimated to be applicable to volumes purchased during the current calendar month, expressed to ,the nearest $0.0001 per Mcf (shown below as "Re") . (c) The base city gate rate of $4.0200 per Mcf. � (2) Correction of the estimated adjustment determined by Item B (1) above shall be included as part of the adjustment for the second �::_� fol•lowing billing month. The correcting factor (shown below as "C") shall be expressed to the nearest $0.0001 per Mcf based upon: 1 EXHIBIT "A" TO ORDINANCE N0. $9-05 as a reconnect charge for each reconnection or reinauguration of gas service, where service has been discontinued at the same prem- ises for any reason, with the following exceptions. (a) For a builder who uses gas temporarily during construction or , for display purposes. (b) For the first occupant of the premises. �;.� (c) Whenever gas service has been temporarily interrupted ecause of system outage, service work or appliance installation done by Company; or (d) For any reason deemed necessary for Company operations. (2) Returned Check Charge A returned check handling charge of $7.50 is made for each check returned to the Company for reasons of non-sufficient funds, account closed, payment withheld, invalid signature or improper preparation. (3) Collection Charge A charge of $7.00 shall be made for each instance when it is necessary for a company employee to go to a customer's residence or place of business in order to collect amounts owed the Company for gas service previously rendered. This charge shall not apply if service is terminated at the time of the collection action. ` This charge shall apply to only one trip on the same amount owed. � ,�. ITEM F. Main Line Extension Rate The charge for extending mains beyond the free limit established by Lone Star Gas Company, or any free limit established by franchise, for residential customers shall be the lesser of: (a) the system-wide average cost of construction, including all overheads, for the prior fiscal year or (b) the adjusted actual cost as determined by applying the latest Handy-Whitman Index to the 1975 actual base cost of $2.94. The Company shall file the calculation of such charge with the city as soon as sufficient data is available each fiscal year. Extension to commercial and industrial customers shall be based on actual cost per foot. 3