HomeMy WebLinkAboutOrd 324 Determining Lone Star Gas rates ORDINANCE NO. 324
AN ORDINANCE OF THE TOWN OF WESTLAKE, TEXAS FINDING, AFTER
REASONABLE NOTICE AND HEARING, THAT LONE STAR GAS
COMPANY'S RATES AND CHARGES WITHIN THE TOWN SHOULD BE
CHANGED; DETERMINING JUST AND REASONABLE RATES; REJECTING
WEATHER NORMALIZATION, PLANT INVESTMENT AND COST OF
SERVICE AUTOMA'T'IC 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 TOWN;
ORDERING THAT THIS ORDINANCE BE SERVED ON LONE STAR GAS
COMPANY;PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES.
WHEREAS, the Town of Westlake ("Town"), 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 Town in order to study the reasonableness of that
application;
WHEREAS, the Town of Westlake, considered the Company's application, a
report from the Town's consultants who were retained to evaluate the merits of Lone
Star's application and a settlement agreement between the Town and Lone Star in a
reasonably noticed public hearing;
WHEREAS, the Town has determined that the Company's rates with the Town
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 TOWN OF WESTLAKE, 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 resulting from this Ordinance are hereby
determined to be just and reasonable rates to be observed and in force within the Town.
SECTION 2: That it is hereby ordered that Lone Star's rates in the Town be set
on the basis of a 2.94% increase in overall system average revenues with a 3.98%
increase in system average residential revenues and a 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 Town of Westlake are
authorized to increase over test year levels, exclusive of increases in service charges, in
the following manner: $3,885 for residential customers and $2,103 for commercial
customers. The residential and commercial rates resulting from this Ordinance shall be
Ordinance No. 324
Page 2
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 I effect in this Town to the
extent that such municipal franchise fee or street and alley assessment is at a rate higher .
that 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 Town of Westlake
the benefits of any agreement or order applicable elsewhere in the Mid-Cities Distribution
System.
SECTION 7: Lone Star shall file with the Town, no later that 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 Board of Aldermen to comply with the provisions of
this Ordinance within twenty (20) days from the date of filing with the Town, otherwise
the same shall be considered approved as filed.
SECTION 8: That the fees and expenses associated with the Town 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
Town 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.
SECTION 10: 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.
Ordinance No. 324
Page 3
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 Town
under law to regulate the rates and changes of Lone Star.
SECTION 12: All ordinances, resolution, 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.
PASSED AND APPROVED by the Board of Aldermen of the Town of Westlake,
Texas, on this 12t1i day of April, 1999.
Scott Bradle , Mayor
ATTEST:
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APPROVED AS TO FORM:
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