Loading...
HomeMy WebLinkAboutO-1892-12-00ORDINANCE NO. 1892-12-00 ' AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT TXU GAS DISTRIBUTION'S RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINING NST AND REASONABLE RATES; ADOPTING WEATHER NORMALIZATION ADJUSTMENT; REJECTING PLANT INVESTMENT CLAUSE; APPROVING AN ADJUSTMENT FACTOR FOR CERTAIN FEES AND TAXES; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES; PRESERVING REGULATORY RIGHTS OF THE CITY; ORDERING THAT THE COMPANY FILE TARIFFS REFLECTING APPROVED CHANGES IN RATES AND CHARGES; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Allen ("City"), acting as a regulatory authority, has previously suspended the effective date of TXU Gas Distribution's ("Company") 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, a report from the City's consultants who were retained to evaluate the merits of the Company's application and a settlement agreement negotiated with TXU Gas Distribution by a Steering Committee of Cities on the Northeast Metro Distribution System; 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 ALLEN, COLLIN COUNTY, TEXAS, THAT: SECTION 1. The existing rates and charges of TXU Gas Distribution 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 City. SECTION 2. It is hereby ordered that the Company's rates in the City be set on the basis of a $4,749,743 increase in overall system average revenues. That revenue deficiency shall be allocated in the following manner: a $3,062,760 increase in system average residential revenues, a $903,735 increase in system average commercial revenues and a $783,248 increase in system average industrial and transportation revenues on the Northeast Metro Distribution System. The increase in overall system average revenues also includes a $432 increase in other revenue (associated with service charges) over test year levels. Pursuant to Texas Utilities Code Section 103.001, the City establishes rates and charges consistent with these allocations. To the extent that industrial and transportation customers have competitive options, the rates established by this ordinance constitute "not to exceed" rates in recognition of the right of such customers to negotiate reasonable rates. SECTION 3. The residential, commercial and industrial rates resulting from flus 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 or comparable mechanism authorized by the Railroad Commission of Texas. Industrial rates shall be adjusted in accordance with contractual terms or tariffs as may be appropriate. The city gate rate shall be adjusted by a volume factor of 1.0177 to recognize lost and unaccounted gas on the Northeast Metro Distribution System. SECTION 4. The Weather Normalization Clause proposed by the Company is adopted. The Plant Investment adjustment clause proposed by TXU Gas Distribution is unreasonable and is specifically rejected. The Company is authorized to adjust monthly bills to reflect changes in municipal fianchise fees, street and alley assessment and state gross receipts taxes imposed by Sections 182.025, 182.024 of the Texas Tax Code occurring after the effective date of this ordinance. SECTION 5. Existing monthly customer charges, miscellaneous service charges and line extension cbarges as reflected in Exhibit "A" are reasonable and shall be continued. SECTION 6. School districts will continue to be billed in the rate classification they were in during the test year. SECTION 7. TXU Gas 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 charges based upon the increases and charges 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 the filing with the City, otherwise the same shall be considered approved as filed. SECTION 8. 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 TXU Gas 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. SECTION 9. The rate charges ordered herein become effective for billing on December 9, 2000. ' SECTION 10. This Ordinance shall be served on TXU Gas Distribution by U.S. Mail to the Company's authorized representative, Autrey Warren, Regulatory Financial Manager, TXU Business Services, 1601 Bryan Street, Dallas, Texas 75201-3411. SECTION 11. Nothing contained in this Ordinance shall be construed now or hereafter in limiting or modifying, in any manner, the right and power of the City under law to regulate the rates and charges of TXU Gas. SECTION 12. All ordinances of the City of Allen in conflict with the provisions of this ordinance shall be, and the same are hereby, repealed; provided, however, that all other provisions of said ordinances not in conflict herewith shall remain in full force and effect. SECTION 13. Should any word, sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said ordinance which shall remain in full force and effect. SECTION 14. This ordinance shall take effect immediately from and after its passage and publication of the caption in accordance with the provisions of the Charter of the City of Allen, and it is accordingly so ordained. Ordinance No. 1892-12-00_, Page 2 1 1 DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 7TH DAY OF DECEMBER, 2000. APPROVED: Stephen Terrell, MAYOR APPROVED AS TO FORM: ATTEST: Peter GSmith, C ry ATTORNEY J dy Mo on, CMC/AAE, CITY SECRETARY Ordinance No. 1092-12-00 Page EXHIBIT A ' The following service charges shall be applicable: 1. Connection charge Business hours $ 35.00 After hours $ 52.50 2. Read for Change Charge $ 12.00 3. Returned Check Charge $ 16.25 4. Delinquent Notification Charge $ 4.75 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. Customer Charges Residential Commercial $ 7.00 $ 12.00