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Ord 035-2000 4/4/2000ORDINANCE NO. j-a,Q -- u AN 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 WEATHER NORMALIZATION CLAUSE; PROVIDING FOR A MAIN LINE EXTENSION RATE; FIXING AND DETERMINING A GENERAL SERVICE RATE FOR SALES OF NATURAL GAS PURSUANT TO INDUSTRIAL RATES -N; 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 the 4th of April, 2000, the rate for sales of natural gas rendered to consumers within the city limits of Wichita Falls, Texas, by TXU Gas Distribution, a division of TXU Gas Company, a Texas Corporation, its successors and assigns (Company), 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 will be adjusted upward or downward from a base of $ 2.7535 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. The residential and commercial rates set forth above will be adjusted upward or downward for changes in taxes and other governmental imposition, rental fees, or charges according to the Attachment hereto. SECTION 4. Effective with gas bills rendered on and after the 4 "' of April, 2000, the maximum rate for sales of natural gas pursuant to Industrial Rates -N by Company to industrial customers within the city limits of Wichita Falls, Texas, is hereby fixed and determined as set forth in the Attachment hereto which is incorporated herein. 2 SECTION 5. In addition to the aforesaid rates, Company has 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. 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 unless and until deemed to be regulated by the City pursuant to State law. SECTION 6. In addition to the aforesaid rate, Company is authorized to recover the current rate case expense through a surcharge of actual rate case expense over a twelve month recovery period. The surcharge per Mcf will be calculated 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 7. 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 8. The operation of Texas Utilities Code Section 104.110 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 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 April 4, 2000. SECTION 9. 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 4th day of April, 2000. A Y O f R ATTEST: City Clerk 4 ATTACHMENT TO ORDINANCE NO. 5J`,�)CbU CITY OF WICHITA FALLS, TEXAS TXU GAS DISTRIBUTION TARIFFS & SCHEDULES ITEM A. Rates - Effective April 4, 2000 Subject to applicable adjustments as described herein, the following rates are the maximum applicable to residential or 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 $ 6.0000 All Consumption @ 3.5675 Per Mcf If the service period is less than 28 days in a month, the customer charge is $.2143 times the number of days service. Commercial: Customer Charge $14.0000 First 20 Mcf @ 4.1723 Per Mcf Next 30 Mcf @ 3.8723 Per Mcf Over 50 Mcf @ 3.7223 Per Mcf If the service period is less than 28 days in a month, the customer charge is $.5000 times the number of days service. Bills are due and payable when rendered and must be paid within fifteen 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. W ITEM A -1. Rates -Effective April 4, 2001 Subject to applicable adjustments as described herein, the following rates are the maximum applicable to residential or 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 $ 6.0000 All Consumption @ 3.5897 Per Mcf If the service period is less than 28 days in a month, the customer charge is $.2143 times the number of days service. Commercial: Customer Charge $14.0000 First 20 Mcf @ 4.1928 Per Mcf Next 30 Mcf @ 3.8928 Per Mcf Over 50 Mcf @ 3.7428 Per Mcf If the service period is less than 28 days in a month, the customer charge is $.5000 times the number of days service. Bills are due and payable when rendered and must be paid within fifteen 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. ITEM A -2. Industrial Rates -N - Effective April 4, 2000 Industrial Rates -N is hereby amended and revised as follows: Monthly Rates: Subject to Company's limitations on the availability of each rate, Customer shall receive service under its choice of one of the following rates in accordance with the rate selected by Customer as provided in the contract: 99 RATE 1 First 125 Mcf or less $217.87 All over 125 Mcf @ 1.696 per MCF RATE 2 First 600 Mcf or less $966.31 All over 600 Mcf @ 1.521 per MCF RATE 3 First 1,250 Mcf or less $1,847.74 All over 1,250 Mcf @ 1.449 per MCF In all other respects, Industrial Rates -N shall remain in effect as filed with the City of Wichita Falls, Texas. 100% of the increase in industrial margin is to accrue to the benefit of TXU Gas Distribution. ITEM A -3. With the enactment of this ordinance, and upon request from the City, TXU Gas Distribution will file a report of all revenue and volumes related to gas sales to industrial customers and transportation to industrial customers within the Wichita Falls Distribution system. Such information shall be provided in a format that separates the revenue and volumes by each industrial rate class. ITEM B. Gas Cost Adjustment Each monthly bill at the above residential and commercial 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) 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 "), less (b) The base city gate rate of $2.7535 per Mcf multiplied by (c) A volume factor of 1.0287 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes. 7 (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. In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by Item B(1) and Item B(2) as follows: GCA = [Item B(1) + Item B(2)] GCA = [(1.0287) (Re - 2.7535) + C] ITEM C. Tax Adjustment Each monthly residential and commercial bill, as adjusted above, shall be adjusted for municipal franchise fees (street and alley rental taxes) and the state gross receipts taxes imposed by Sections 182.021 - 182 -024 of the Texas Tax Code. Each monthly bill, as adjusted above shall also be adjusted by an amount equivalent to the proportionate part of any new tax, or any tax increase or decrease, or any increase or decrease of any other governmental 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 December 31, 1998, upon or allocated to the Company's distribution operations, by any new or amended law, ordinance or contract. ITEM D. Weather Normalization Adjustment Clause The Weather Normalization Adjustment clause authorized in the rate ordinance dated September 20, 1994 will continue in effect with one change. The actual residential base load will be used to determine the residential heating load rather than the residential class base load. There is no change in the determination of the base load for commercial customers. The revised weather normalization adjustment clause reads as follows: Effective with bills rendered during the October 1999 through May 2000 billing months, and annually thereafter for the October through May billing months, the above residential and commercial consumption rates for gas service, as adjusted, shall 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 of each customer during the period included in the billing cycle. It will be 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: WNA = NDD -ADD x M x AHL ADD 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 = Weighted 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 and 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 nonheating 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 $0.0001 per Mcf. ITEM E. Schedule of Service Charges (1) Connection Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of. M Schedule Charge Business Hours $35.00 After Hours $52.50 For each reconnection of gas service, where service has been discontinued at the same premises for any reason after the initial 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 for display purposes; (b) Whenever gas service has been temporarily interrupted because of system outage, service work done by Company; or (c) For any reason deemed necessary for Company operations. (2) Read for Change Charge (3) 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. Returned Checks A returned check handling charge of $16.25 is made for each check returned to the Company for any reason. (4) Delinquent Notification Charge A charge of $4.75 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 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. 10 ITEM E. Schedule of Service Charges (contd) (5) Other Reasonable Charges Company has the right to collect reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regulations in effect. 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 unless and until deemed to be regulated by the City pursuant to State law. (6) 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 30 days, approve, deny, or modify such new, additional, or amended service charges. Should the City take no action within the 30 day period, the new, additional, or amended rates shall become effective on the 31 st day after filing with the City Clerk. ITEM F. Main Line Extension Rate 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.