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Home My WebLink AboutORD 1999-057 r ORDINANCE NO. 99-57 AN ORDINANCE OF THE CITY OF GRAPEVINE, TEXAS FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT LONE STAR GAS COMPANY'S RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINGING JUST AND REASONABLE RATES; REJECTING WEATHER NORMALIZATION, PLANT INVESTMENT AND COST OF SERVICE AUTOMTIC ADJUSTMENT CLAUSES; APPROVING AN ADJUSTMENT FACTOR FOR FRANCHISE FEES; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; ADOPTING A MOST FAVORED NATIONS CLAUSE; PRESERVING REGULATORY RIGHTS OF THE CITY; ORDERING THAT THIS ORDINANCE BE SERVED ON LONE STAR GAS COMPANY; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine ("City"), acting as a regulatory authority, has _� � previously suspended the effective date of Lone Star Gas Company's ("Lone Star") application to increase rates in the City in order to study the reasonableness of that �:::..� application; and WHEREAS, the City of Grapevine, considered the Company's application, a report from the City's consultants who were retained to evaluate the merits of Lone Star's application, and a settlement agreement between the City and Lone Star in a reasonably noticed public hearing; and WHEREAS, the City has determined that the Company's rates within the City should be changed and that the Company's application should be granted, in part, and denied, in part. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That the existing rates and charges of Lone Star are hereby found, after reasonable notice and hearing, to be unreasonable and shall be changed as hereinafter ordered. The changed rates resutting from this Ordinance are hereby determined to be just and reasonable rates to be observed and in force within the City. Section 2. That it is hereby ordered that Lone Star's rates in the City be set on y the basis of a 2.94% increase in overall system average revenues with a 3.98% �::� increase in system average residential revenues and 1.39% increase in system average commercial revenues on the Mid-Cities Distribution System. The increase in system average revenues also includes a $26,652 increase in other revenue (associated with service charges) over test year levels. Revenues from the City of Grapevine are ` "` authorized to increase over test year levels, exclusive of increases in service charges, in the following manner: $103,570 for residentia� customers; $5,558 for commercial customers; and $5,905 for commercial customers in Grapevine/DFW. The residential and commercial rates resulting from this Ordinance shall be adjusted upward or downward from a base per Mcf city gate rate set by the Railroad Commission of Texas by a Gas Cost Adjustment Factor authorized by the Railroad Commission of Texas. Section 3. The Weather Normalization, Plant Investment and Cost of Service automatic adjustment clauses proposed by Lone Star are unreasonable and are specifically rejected. The Company is authorized to adjust monthly bills to include any municipal franchise fee or street and alley assessment now or hereafter in effect in this City to the extent that such municipal franchise fee or street and alley assessment is at a rate higher than 3% of the Company's gross receipts. Section 4. That current residential and commercial monthly customer charges of$5.00 and $12.00 are reasonable and shall not be changed. Section 5. That the miscellaneous service changes and line extension charges reflected in Exhibit "A" are reasonable and are hereby approved. Section 6. That approval of a most favored nations clause is reasonable and �..# in the public interest and Lone Star is ordered to provide residents of the City of Grapevine the benefits of any agreement or order applicable elsewhere in the Mid-Cities Distribution System. Section 7. Lone Star shall file with the City, no later than the effective date of the changed rates ordered herein, revised Tariffs and Schedules, together with rate design workpapers and supporting data as requested, setting forth the rates, tariffs and changes based upon the increases and changes prescribed herein. Such Tariffs and Schedules may be modified or amended by the City Council to comply with the provisions of this Ordinance within twenty (20) days from the date of filing with the City, otherwise the same shall be considered approved as filed. Section 8. That the fees and expenses associated with the City retaining counsel and consultants to investigate the Company's application are reasonable and are to be paid by Lone Star and recovered from ratepayers through a system-wide surcharge spread over a six month period. The company shall provide a monthly accounting to the City showing, by months, the amount recovered through the surcharge. Section 9. That the rate changes ordered herein become effective for billing ' on May 2, 1999. � ORD. NO. 99-57 2 Section 10. That this Ordinance shall be served on Lone Star by U.S. mail to the Company's authorized representative, Mary Jean Moloney, TU Electric/Lone Star Gas, Texas Utilities Companies, 100 West Abram, Arlington, Texas 76010. Section 11. That nothing contained in this Ordinance shall be construed now or hereafter in limiting or modifying, in any manner, the right and power of the City under law to regulate the rates and changes of Lone Star. Section 12. All ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the extent of such conflict. Section 13. It is hereby found and determined that said meeting 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 meeting was given. Section 14. 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 20th day of April, 1999. �.z;.,..� APPROVED: �%�— William D. Tate Mayor ATTEST: Lin Huff City Secretary „t. . ORD. NO. 99-57 3 APPROVED AS TO FORM: � ,, � . .w� . , :: :._ . ,� �, John F. Boyle, Jr. City Attorney �� ORD. NO. 99-57 4 Exhibit"A"to Ord.No.99-57 Page 1 of 2 EXHIBIT "A" LONE STAR GAS COMPANY MID-CITIES DISTRIBUTION SYSTEM SCHEDULE OF SERVICE CHARGES A. Connection Charge In addition to the charges and rates set out above, the company shall charge and collect the sum of: Schedule Charqe Business Hours $35.00 After Hours $52.00 � For each reconnection of gas service where service has been discontinued at the same premises for any reason, for the init, ' inauguration of service, and for each inauguration of service when the billable party has changed, with the following exceptions: (a) For a builder who uses gas temporarily during construction of 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 operations. B. Read For Change Charge A read for change charge of$12.00 is made when it is necessary for a Company employee to read the meter at a currently served location because of a change in the billable party. ,:..=.w Exhibit"A"to Ord. No.99-57 Page 2 of 2 C. Returned Check Charges A returned check handling charge of $16.25 is made for each check returned to the Company for any reason. D. Delinquent Notification Charge A charge of $4.75 shall be made for each trip by a Company employee to a customer's residence or place of business when there is an amount owed to the Company that is past due. This charge shall not be made when the trip is required for safety investigations or when gas service has been temporarily interrupted because of system outage or service work done by Company. MAIN LINE EXTENSION The charge for extending mains beyond the free limit established by Franchise for residential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. ��}� ��