HomeMy WebLinkAboutOrd 131 Determining the Lone Star Gas Company ratesORDINANCE NO. 131
AN ORDINANCE FIXING AND DETERMINING THE GENERAL
SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL
GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN
THE TOWN OF WESTLAKE, - TARRANT COUNTY, TEXAS; PROVIDING
FOR THE MANNER 1N WHICH SUCH RATE MAY BE CHANGED,
ADJUSTED, AND AMENDED; AND PROVIDING FOR A SCHEDULE
OF SERVICE CHARGES.
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS
SECTION I. 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 town limits of Wes t:lak&, 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.
SECTION 2. The residential and commercial rates set forth above
shall be adjusted upward or downward from a base of $4.3934 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 Westlake distribution system, accord-
ing 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. Rote case expense is not included in the calculation
of proposed rates. If rate case expense is incurred in this current case, it is
the intention of Lone Star Gas Company to recover the current and any
prior rate case expense through a surcharge designed for a six-month nominal
recovery period. The surcharge per Mcf would be calculated by dividing the
rate case expense to be recovered by one-half of the adjusted annual sales
volume to residential and commercial customers. If there is no current rate,
case expense, the Company will forego recovery of any unamortized prior
rate case expense. When a surcharge is applicable, monthly status reports
will be provided to account for the collections.
SECTION S. 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 service charges set forth in Item D, in the Attachment hereto which is
incorporated herein are approved. Services for which no charge is set out in
liem D may be performed and charged for by Company at a level established
,.by the normal forces of competition.
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 juris-
diction, 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 the 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 on this the
A.D. 19�.�
ATTEST;
Se ' etary
/�'fiday of
Mayor
Town of Westlake, Texas
STATE OF TEXAS �
COUNTY OF TARRANT
1�-ct Secretary of the Town of
Westlake Tarrant County,
Texas, hereby certify that the above and foregoing is a true and
correct copy of an ordinance passed and approved by the flown
council of the town of Westlake at a,�
session held on the %1(Way of ,�,. 19 IFIS it
appears of record in the Minutes OF said Council in Book
Page 6 17
WITNESS MY HAND AND SEAL OF SAID CITY, THIS THE %,ea`,
day of A.D. 19-F-3.
a
SecrJAary
Town of Westlake, Texas
ATTACHMENT TO ORDINANCE NO.
CITY OF WESTLAKE, TEXAS -
LONE STAR GAS COMPANY
TARIFFS & SCHEDULES
Item A. 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 some location. Summer rates shall be applicable between the
meter reading dates in May and October. Winter rates shall be applicable at alb
other times.
Residential:
Customer Charge
All Consumption @
Winter Summer
$5.0000 5.0000
$5.7685 per Mcf $5.4185 per Mcf
If the service period is less than 28 days, the customer charge is $.1786 times
the number of days service.
Commercial: Winter Summer
Customer Charge $8.0000 $8.0000
All Consumption @ $5.7685 per Mcf $5.4185 per Mcf
If the service period is less than 28 days, the customer charge is $.2857 times
the number of days service.
Bills are due and payable when rendered and must be paid within ten days from
the monthly billing date.
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 1.0220 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").
(c) The city gate rate of $4.3934 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 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 Octual city gate
rate, less
(b) The estimatcd adjustment amount billed under Item B (1) above, divided
by
(c) Distribution system residential and commercial sales Mcf recorded on
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 Items B (1) and Item B (2) above shell be
multiplied by a tax factor of 1.04335 to include street and alley rental and
state occupation tax due to increasing or decreasing Company revenues
under this gas cost adjustment provision.
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 = (1.0220) (Re - $4.3934) + C x 1.04335
Item C. Tax Adjustment
The tax adjustment shall be on amount equivalent to the proportionate part of
any new tax, or increased tax, or 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 January I, 1983,
upon or allocable to the Company's distribution operations, by any new or amended
law ordinance or contract.
Item D. Schedule of Service Charges
(1) Reconnect Charge
In addition to the charges and rates set out above, the Company shall charge
and collect the sum of:
Schedule
Charge
8 a.m. to 5 p.m. Monday through Friday $20.00
5 p.m. to 13 a.m. Monday through Friday $30.00
Saturdays, Sundays and Holidays $30.00
as a reconnect charge for each reconnection or reinouguratson of gas ser-
vice_, where service has been discontinued of the same premises for any
reason, with the following exceptions.
(a) For a huildur who uses gas temporarily during construction or for dis-
pl oy purpw s.
(b) For the first occupant of the premises.
(c.} `,' henevf•r c}as service has been temporarily interrupted because of system
outc(Jt-, ss:rvice work or appliance installation done by Company; or
(d) for any reason deemed necessary for Company operations.
(Z) Returned Check Charges
A returned check handling charge of $5 is made for each check returned to
the Company for reasons of non -sufficient funds, account closed, payment
withheld, invalid signature or improper preparation.
Lone Star Gas Company
6
U, R. RENDERS ON
Manager 173 Highway 114 West - Grapevine, Texas 761751
October 10, 1983
Mayor Dale White
P. 0. Box 27
Roanoke, Texas 76262
Dear Mayor White
On June 14, 1983, I filed a Statement of Intent to change the rates
charged for natural gas service in Westlake.
The proposed rate was reviewed by your Board of Alderman on the 14th
day of June 1983. A decision by the Board was to suspend our proposed rate
for 120 days to allow the Town sufficient time to gather information and
review and analyze the proposed change.
Wisdom and cooperation manifested by the Westlake Town Council and the
City Councils of Southlake and Grapevine during the last rate hearings
resulted in identical rates for current gas service to the three cities.
This removed the discriminatory aspact of customers being charged different
rates for natural gas from the same distribution mains just because they
live in separate municipalities. City boundry lines do not alter the
cost of service and an economically sound gas system cannot always be
structured within municipal limits. Therefore, the Grapevine Distribution
System is the most economical approach and is one which results in the
lowest possible gas rates for our citizens and customers. Please allow
me to request and encourage your continued cooperation with the other
municipalities in this gas distribution system so that identical rates
which are just and fair to all concerned may be adopted by ea,fh of the three
cities involved.
After several meetings with the City Council of Grapevine and a work-
shop with their Utility Committee, the City of Grapevine adopted an
ordinance on first reading October_ 4, 1983, Attached is a proposed
ordinance that is identical to the one passed by the Grapevine Council.
The ordinance approved by Grapevine changed the customer charge from the
$6.00 and $4.00 residential and $10.00 and $6.00 commercial to a flat
$5.00 residential and $8.00 commercial customer charge. By making this
change, it has lowared the consumers winter bill and raised the summer
bill. During periods of high consumption this rate will provide some
relief to the Logia Income and the Elderly.
Page 2
Mayor White
Let me assure you that T stand ready to assist in every possible way
as you evaluate the Grapevine Ordinance. Hopefully, the Board of Alderman
will accept the Grapevine Rate which will allow continued identical rates
throughout the Westlake., Southlake and Grapevine area.
Should you have any questions, please call me at 488-7561.
d `�r
V. R. Henderson
VRH/ kf
cc: Mr. Steve Morath
Mr. G. L. Smith