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Ord 129-94 9/20/1994 ORDINANCE NO. 129-94 A ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, FIXING AND DETERMINING A GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE CITY OF WICHITA FALLS, WICHITA COUNTY, TEXAS; PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; PROVIDING FOR THE RECOVERY OF CURRENT RATE CASE EXPENSE; PROVIDING FOR A SCHEDULE OF SERVICE CHARGES; PROVIDING FOR A MAIN LINE EXTENSION RATE; DECLARING AN EMERGENCY; AND FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS ORDINANCE WAS DISCUSSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. Effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance, the rate for sales of natural gas rendered to consumers within the city limits of Wichita Falls, 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 the Attachment hereto which is incorporated herein. 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 intercompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Wichita Falls Distribution System, according to the Attachment hereto. SECTION 3. Company shall also receive tax adjustments according to the Attachment hereto. 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 as set forth in the Attachment hereto are approved. l SECTION 5. In addition to the aforesaid rate, Company is authorized to recover the current rate case expense through a surcharge designed for a twenty-four (24) month nominal recovery period. The surcharge per Mcf will be calculate by dividing the rate case expense to be recovered by the adjusted annual sales volume plus transported volume to all customers in the Wichita Falls Distribution System. The Company will provide monthly status reports to account for the collection. 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. The operation of Section 5.08 of Article 1446e demands immediate action by the City Council of the City of Wichita Falls, Texas, and the same does create a public emergency and imperative public necessity requiring the suspension of the Charter requirement that no ordinance shall become effective until the lapse of thirty (30) days thereafter; the City Council having therefore found an emergency and necessity to exist and having called for the suspension of such Charter requirement, does hereby declare that it shall become effective from and after its passage on this 20th day of September, 1994. SECTION 8. It is hereby officially found and determined that the meeting at which this ordinance was passed was open to the public as required by law. PASSED AND APPROVED this the 20th day of September, 1994. 7 M A 0 R ATTEST: ck) (76)(Ak,, 1 City Clerk 4 3 LONE STAR GAS COMPANY WICHITA FALLS TEXAS DISTRIBUTION SYSTEM SCHEDULE OF SERVICE CHARGES (1) RECONNECT CHARGE In addition to the charges and rates set out above, the Company shall charge and collect as a reconnect charge: SCHEDULE gliAllgE 8 a.m. to 5 p.m. Monday through Friday $27.50 5 p.m. to 8 p.m. Monday through Friday $41.25 Saturdays, Sundays and Holidays $41.25 For each reconnection or reinauguration of gas service, where service has been discontinued at the same premises 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 because of system outage, service work or appliance installation done by Company; or, (D) For any reason deemed necessary for Company operations. (2) RETURNED CHECK CHARGES. A returned check handling charge of $13 .75 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. This charge shall apply only to one trip on the same amount owed. 4 (4) NEW. ADDITIONAL OR AMENDED SERVICE CHARGES Prior to the imposition of new, additional or amended service charges, the Company shall file notice of such charges with the City Clerk. The City shall, within thirty (30) days, approve, deny or modify such new, additional or amended service charges. Should the City take no action within the thirty (30) day period, the new, additional or amended rates shall become effective on the thirty-first (31st) day after filing with the City Clerk. l 5 LONE STAR GAS COMPANY WICHITA FALLS TEXAS DISTRIBUTION SYSTEM SCHEDULE OF MORATORIUM ON REQUESTS FOR RATE INCREASES (5) With the enactment of this ordinance and the rates therein, the Company agrees not to file a request for a rate increase prior to April_ 1999. Such moratorium will be applicable to all rates and charges identified in this ordinance. Notwithstanding anything herein to the contrary, the City reserves the right to call for a rate study of the reasonableness of the rates authorized hereby in the event the reports required by Subsection (6) indicate significant growth in revenues from gas sales or transportation charges to industrial customers. 6 LONE STAR GAS COMPANY WICHITA FALLS TEXAS DISTRIBUTION SYSTEM SCHEDULE OF REPORTING REQUIREMENTS (6) With the enactment of this ordinance, Lone Star Gas Company agrees to file with the City of Wichita Falls a quarterly report of all revenue and volumes related to gas sales to industrial customers and transportation to industrial customers. Such reports shall be filed within forty-five (45) days of the end of each calendar quarterly beginning with the next calendar quarter subsequent to the effective date of this ordinance. 7 LONE STAR GAS COMPANY WICHITA FALLS TEXAS DISTRIBUTION SYSTEM SCHEDULE OF MAIN LINE EXTENSION RATE (7) 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 a sufficient data is available each fiscal year. Extension to commercial and industrial customers shall be based on actual cost per foot. l _ - 8 ATTACHMENT TO ORDINANCE NO. CITY OF WICHITA FALLS, TEXAS LONE STAR GAS COMPANY TARIFFS & SCHEDULES ITEM A. Rates The following rates are the maximum applicable to residential and commercial 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 $5.00 All Consumption @ 4.9159 Per Mcf If the service period is less than 28 days in a month, the customer charge is $0. 1786 times the number of days service. Commercial: Customer Charge $8.00 First 20 Mcf @ 5.5857 Per Mcf Next 30 Mcf @ 5.2857 Per Mcf Over 50 Mcf @ 5. 1357 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. Bills are due and payable when rendered and must be paid within ten days from monthly billing date. Residential Off-Peak Sales Discount: An off-peak sales discount of $.25 per Mcf will apply to residential customers volume purchased in excess of 8 Mcf for each of the billing months May through October. 9 ITEM B. Gas Cost Adjustment Each monthly bill at the above rates 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 1.0087 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 rate estimated to be applicable to volumes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcf (shown below as "Re") . (2) Correction of the estimated adjustment determined by Item B(1) above shall be included as part of the adjustment for the second following billing month. The correcting factor (shown below as "C") shall be expressed to the nearest $0.0001 per Mcf based upon: (a) The corrected adjustment amount based upon the actual city gate rate, less (b) The estimated adjustment amount billed under Item B(1) above, divided by (c) Distribution system residential and commercial sales Mcf recorded in the Company's books during the prior year for the month that the correction is included as part of the adjustment. (3) The adjustment determined by Item B(1) and Item B(2) above shall be multiplied by a tax factor of 1.05212 to include street and alley rental and state occupation tax due to increasing or decreasing Company revenues under this gas cost adjustment provision. 10 In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by Item B(1) , Item B(2) and Item B(3) as follows: GCA = [Item B(1) + Item B(2) ] X Item B(3) GCA = [1. 0087 (Re - $4.0200) + C] X 1.05212 ITEM C. Tax Adjustment The tax adjustment shall be an amount equivalent to the proportionate part of any new tax, or any tax increase or decrease or any increase or decrease of incre Y any other government imposition, rental fee or charge (except state, county, city and special district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to July 1, 1993, upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. ITEM D. Weather Normalization Adjustment Clause Effective with bills rendered during the October 1994 through May 1995 billing months and annually thereafter from the October through May billing months, the above residential and commercial consumption rates for gas service will be subject to a weather normalization adjustment each billing cycle, to reflect the impact of variations in the actual heating degree days during the period included in the billing cycle from the normal level of heating degree days during the period included in the billing cycle. The weather normalization adjustment will be implemented on a per Mcf basis and will be applicable to the heating load determined separately for residential and commercial customers based on heating degree data recorded by the Wichita Falls weather station. The adjustment to be made for each billing cycle will be calculated according to the following formula: 1 11 WNA = (NDD - ADD) / ADD x M x AHL Where: WNA = Weather Normalization Adjustment NDD = Normal Heating Degree Days during the period covered by the billing cycle ADD = Actual Heating Degree Days during the period covered by the billing cycle M = Weight Average Margin per Mcf included in the commodity portion of the rates effective during the October through May billing months AHL = Actual Heating Load per customer The heating load to which the weather normalization adjustment is to be applied for residential customers is determined by subtracting the residential class base load from the total volume being billed to the customer. The heating load to which the weather normalization adjustment is to be applied for commercial customers is determined by subtracting the base load for the customer from the total volume being billed to the customer. The base load of a customer is the average level of non-heating consumption. The weather normalization adjustment is subject to a 50% limitation factor based on temperatures being fifty percent warmer or colder than normal. The weather normalization adjustment will be calculated to the nearest $.0001 per Mcf. Ad 5 42 of Affidavit is ti n THE STATE OF TEXAS ORDINANCE NO.129-94 ORDINANCE OF THE CITY COUNTY OF WICHITA COUNCIL OF THE CITY OF WICHITA FALLS,TEXAS,FIX- „,r,,..% ING AND DETERMINING A - _ GENERAL SERVICE RATE TO O c t o b e r BE CHARGED FOR SALES OF (1.,., :,• d _-___6 h_______—__—_ day of--_— —_— _— .—_.- NATURAL GAS TO RESIDEN- TIAL AND COMMERCIAL CONSUMERS IN THE CITY OF ;.+A WICHITA FALLS, WICHITA A l).• • • ., • . . . . . . . p e r s o n a l l y appeared before me, the undersigned authority COUNTY, TEXAS; PROVID- ING FOR THE MANNER IN l/ r f?ri C Q h h bookkeeper WHICH SUCH RATE MAY BE ---------------------i CHANGED, ADJUSTED, AND AMENDED; PRPOVIDING for the Times Publishing Company of Wichita Falls, publishers of the Wichita Falls FOR THE RECOVERY OF CURRENT RATE CASE EX- -t('COrd �'vPbE„' 9 • PENSE; PROVIDING FOR A Tin eS! newspaper published at Wichita Falls in Wichita County, SCHEDULE OF SERVICE upon sworn by oath t I. CHARGES; PROVIDING FOR Texas, and upon being duly y me, on oath states that the attached A RATE MORTORIUM; PROVIDING FOR QUAR- advertisement is a true and correct copy of advertising published TERLY REPORTS ON INDUS- TRIAL LOAD; PRODIVING in 1. ( on e ) issues thereof On the following dates: FOR A MAIN LINE EX- -- — — — TENSION RATE;DECLARING AN ENERGENCY;AND FIND- _- 2 ING AND DETERMINING AN r- October 3 • 1994 0......4_14/EMERGENCY;AND FINDING AND DETERMING THAT THE MEETING AT WHICH THIS ORDINANCE WAS DISCUSSED _.— WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. Bookkeeper for Times Publishing Company of Wichita Falls $lily /t �:,,'"� I',OMB I`LIMB # Subscribed and sworn to before me this the day and year first above written L1.:11,,f 110TAIZIt PUBLIC t C� STATE CIF TE. : ly'f• ; i w�'• A?` COMM.LXl3S.&IT-9u �jZ,a„`R. a.eta. .W,,..q,a_,r -- a"x-'r•ss!.-a'w.-►