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HomeMy WebLinkAboutOrdinances (O-99-1156)-04/20/1999 ORDINANCE 0-99-1156 AN ORDINANCE OF THE CITY OF COLLEYVILLE FINDING AFTER REASONABLE NOTICE AND HEARING, THAT LONE STAR GAS COMPANY'S RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINING JUST AND REASONABLE RATES; REJECTING WEATHER NORMALIZATION, PLANT INVESTMENT AND COST OF SERVICE AUTOMATIC 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 CITY; ORDERING THAT THIS ORDINANCE BE SERVED ON LONE STAR GAS COMPANY; PROVIDING FOR THE REPEAL OF CONFLICTING ORDINANCES. WHEREAS, the City of Colleyville ("City"), 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 City in order to study the reasonableness of that application; and WHEREAS, the City considered the Company's application and a report from the City's consultants who were retained to evaluate the merits of Lone Star's application in a reasonably noticed public hearing; and WHEREAS, the City has determined that the Company's rates within the City 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 CITY OF COLLEYVI LLE, TEXAS: Sec. 1. Sec. 2. 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 determ ined to be just and reasonab Ie rates to be observed and in force within the City. THAT it is hereby ordered that Lone Star's rates in the City 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 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 City of Colleyville are authorized to change from test year levels, exclusive of increases in service charges, in the following manner: increase $124,096 for residential customers and decrease $1,332 for commercial customers. The residential and commercial rates resulting Ordinance 0-99-1156 Page 2 of 3 Sec. 3. Sec. 4. Sec. 5. Sec. 6. Sec. 7. Sec. 8. Sec. 9. from this Ordinance shall be 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. THAT the Weather Normalization Adjustment Clause, 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 in effect in this City to the extent that such municipal franchise fee or street and alley assessment is at a rate higher than 3% of the Company's gross receipts. THAT the current residential commercial monthly customer charges of $5.00 and $12.00 are reasonable and shall not be changed. THAT the miscellaneous service charges and line extension charges reflected in Exhibit A are reasonable and are hereby approved. 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 City of Colleyville the benefits of any agreement or order applicable elsewhere in the Mid-Cities Distribution System. THAT Lone Star shall file with the City, no later than 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 City Council to comply with the provisions of this Ordinance within twenty (20) days from the date of filing with the City, otherwise the same shall be considered approved as filed. THAT the fees and expenses associated with the City 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 City showing, by months, the amount recovered through the surcharge. THAT the rate changes ordered herein become effective for billing on May 2, 1999. Ordinance 0-99-1156 Page 3 of 3 Sec.10. Sec. 11. Sec. 12. Sec. 13. THAT 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, 100 West Abram, Arlington, Texas 76010. THAT nothing in this Ordinance contained herein shall be construed now or hereafter as limiting or modifying in any manner, the right and power of the City under law to regulate the rates and changes of Lone Star. THAT all ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the extent of such conflict. THAT it is hereby officially 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. AND IT IS SO ORDERED. T"- first reading and public hearing being conducted on the ~ day of '{Jr, . 1999. ThJJsec07d reading and public hearing being conducted on the 2o'l!:. day of 'I'r I . 1999. ATTEST: ;J~' CITY OF COLLEYVILLE ~~ J an Harris, CMC City Secretary Richard Newton Mayor EXH IBIT A LONE STAR GAS COMPANY MID-CITIES DISTRIBUTION SYSTEM SCHEDULE OF SERVICE CHARGES A. CONNECTION CHARGE In addition to the charges and rates set out above, the Company shall collect the sum of: Schedule Charge Business Hours After Hours $35.00 $52.00 For each reconnection of gas service where service has been discontinued at the same premises for any reason, for 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 or for display purposes; (b) Whenever gas service has been temporarily interrupted because of system outage or service work done by company; or (c) For any reason deemed necessary for Company operations. B. Read for Change Charge 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. C. Returned Check Charge A returned check handling charge of $16.25 is made for each check returned to the Company for any reason. D. Delinquent Notification Charge A charge of $4.75 shall be made for each trip by a Company employee to a customer's residence or place of business when there is an amount owed to the Company that is past due. 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. 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.