90-09 O - Lone Star Gas Rate Increase •
ORDINANCE NO. 90-09
AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE
TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND
COMMERCIAL CONSUMERS IN THE CITY OF PROSPER, COLLIN COUNTY,
TEXAS: PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE
CHANGED, ADJUSTED, AND AMENDED; PROVIDING FOR THE RECOVERY
OF ANY CURRENT OR UNRECOVERED PRIOR RATE CASE EXPENSE;
PROVIDING FOR A SCHEDULE OF SERVICE CHARGES; AND PROVIDING
FOR A MAIN LINE EXTENSION RATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PROSPER, TEXAS:
SECTION 1. Subject to the following provisos, effective with
gas bills rendered on and after thirty (30) days from 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 City limits of Prosper, 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.
PROVISO NO. (1) : If this ordinance is finally passed and
approved before the effective date stated in the Statement of
Intent the new rates shall be effective with gas bills rendered on
and after thirty (30) days from the final date of passage of this
ordinance for the good cause of reducing regulatory lag.
PROVISO NO. (2) : If this ordinance is finally passed and
approved after a period of suspension, the new rates shall be
billable immediately in order to reduce regulatory lag. This
provision is an exercise of the regulatory authority' s discretion
to establish the effective date of rates at anytime after
jurisdiction attached, and its authority pursuant to state law to
establish rates for any period of suspension.
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 charged as authorized by the Railroad
Commission of Texas or other regulatory body having jurisdiction
for gas delivered to the Prosper distribution system, according to
Item B, in the Attachment hereto which is incorporated herein.
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Section 3 . Company shall also receive tax adjustments
according to Item C, in the Attachment hereto which is incorporated
herein.
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 set forth in Items D and E, in
the attachment hereto which is incorporated herein, 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.
SECTION 5. In addition to the aforesaid rates, Company is
authorized to recover the current and any unrecovered prior rate
case expense through a surcharge designed for a six-month nominal
recovery period. The surcharge per Mcf will 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. The Company will provide monthly status reports to
account for the collections.
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. 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 on this the 8th day of
JANUARY , A.D. 1994
ATTEST:
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Mayor
City of Prosper, Texas
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STATE OF TEXAS ()
()
COUNTY OF COLLIN ()
SHIRLEY JACKSON • Secretary of the City of
Prosper, Collin County, Texas hereby certify that the above and
foregoing is a true and correct copy of an ordinance passed and
approved by the City Council of the City of Prosper at a regular
session held on 8th day of JANUARY , 19 91, as it appears
of record in the Minutes of said City Council in Book
page 30
WITNESS MY HAND AND SEAL OF SAID CITY, this the 15th day of
JANUARY , A.D. 19 91.
CR
Prospe , Texas
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ATTACHMENT TO ORDINANCE NO. 90-09
CITY OF PROSPER, 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.
Phase I (Effective January 8 , 1991 through March 31, 1991)
Residential:
Customer Charge $6. 0000
All Consumption @ 6. 3987 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 $10 . 0000
First 20 Mcf @ 5. 2830 Per Mcf
Next 30 Mcf @ 4 . 9830 Per Mcf
Over 50 Mcf @ 4 . 8330 Per Mcf
If the service period is less than 28 days in a month the
customer charge is $ . 3571 times the number of days service.
A-1. 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.
Phase II (Effective April 1, 1991 and thereafter until
changed by regulatory action)
Residential:
Customer Charge $6 . 0000
All Consumption @ 6 . 7413 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 $10 . 0000
First 20 Mcf @ 5 . 3230 Per Mcf
Next 30 Mcf @ 5 . 0230 Per Mcf
Over 50 Mcf @ 4 . 8730 Per Mcf
If the service period is less than 28 days in a month the
customer charge is $. 3571 times the number of days service.
Bills are due and payable when rendered and must be paid
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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.
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. 0615 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 base city gate rate of 4 . 0200 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
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 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 Item B (1) and Item B (2)
above shall be multiplied by a tax factor of 1. 01784 to
include street and alley rental and state occupation tax
due to increasing Company revenues under this gas cost
adjustment provision.
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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. 0615) (Re - $4 . 0200) + C] X 1. 01784
ITEM C. TAX ADJUSTMENT
The tax adjustment shall be an amount equivalent to the
proportionate part of any new tax, or any tax increased 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
January 1, 1990 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 $ 25 . 00
5 P.M. to 8 A.M. Monday through Friday 40 . 00
Saturdays, Sundays and Holidays 40 . 00
as a reconnect charge 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.
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(2) RETURNED CHECK CHARGES
A return check handling charge of $7 . 50 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
action. This charge shall apply to only one trip on
the same amount owed.
ITEM E. MAIN LINE EXTENSION RATE
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 as sufficient data is
available each fiscal year. Extension to commercial and
industrial customers shall be based on actual cost per foot.
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