Loading...
HomeMy WebLinkAboutO-1782-11-99ORDINANCE NO. 1782-11-99 AN ORDINANCE OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS FINDING, AFTER REASONABLE NOTICE AND PUBLIC MEETING, THAT LONE STAR GAS COMPANY'S RATES AND CHARGES WITHIN THE CITY SHOULD BE CHANGED; DETERMINING JUST AND REASONABLE RATES; ADOPTING WEATHER NORMALIZATION ADJUSTMENT; REJECTING 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 REPEAL CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Allen ("City"), acting as a regulatory authority, has previously suspended the effective date of Lone Star Gas Company's ("Lone Star") application to adjust rates in the City in order to study the reasonableness of that application; WHEREAS, the City of Allen, 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 meeting; 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: SECTION 1. That the existing rates and charges of Lone Star are hereby found, after reasonable notice and public meeting, 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. That it is hereby ordered that Lone Star's rates in the City be set on the basis of a 3.07% increase in overall system average revenues with a 2.66% increase in system average residential revenues and a 4.82% increase in system average commercial revenues on the Northeast Metro Distribution System. The increase in overall system average revenues also includes a $46,177 decrease in other revenue (associated with service charges) over test year levels. Revenues from the City of Allen are authorized to change from test year levels, exclusive of changes in service charges in the following manner: $273,495 decrease for residential customers and $14,939 decrease for commercial customers. SECTION 3. The residential and commercial rates resulting 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 or comparable mechanism authorized by the Railroad Commission of Texas. 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 Ione Star is adopted. The Plant Investment and Cost of Service automatic adjustment clauses proposed by Ione 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 or occupational tax now or hereafter in effect in this City. SECTION 5. Residential and commercial monthly customer charges of $7.00 and $12.00 respectively are reasonable and are approved. SECTION 6. The miscellaneous service charges and line extension charges reflected in Exhibit A are reasonable and are hereby approved. SECTION 7. Approval of a most favored nations clause is reasonable and in the public interest and Ione Star is ordered to provide commercial and residential residents of the City of Allen the benefits of any agreement or order applicable elsewhere in the Northeast Metro Distribution System. SECTION S. Ione Star shall fide 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. SECTION 9. 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. SECTION 10. The rate changes ordered herein become effective for billing on November 15, 1999. SECTION 11. This Ordinance shall be served on Lone Star by U.S. mail to the Company's authorized representative. SECTION 12. 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 changes of Lone Star. SECTION 13. All ordinances, resolutions, or parts thereof, in conflict with this Ordinance are repealed to the extent of such conflict. SECTION 14. 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. Ordinance No. 1782-11-99 Paget DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF ALLEN, COLLIN COUNTY, TEXAS, ON THIS THE 4''a DAY OF NOVEMBER, 1999. APPROVED: Stephen Terrell, MAYOR APPROVED AS TO FORM: ATTEST: Peter G. Smi�YATTORNEY J�y Mo n, CMC, CITY SECRETARY Ordinance No. 1782-11-99 Page ow L. LONE STAR GAS COMPANY NORTHEAST METRO AISTRIBUTION SYSTEM SCHEDULE OF SERVICE CHARGES A- Connection Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of. Schedule Charge Business Hours $35.00 After Hours $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 Charges A returned check handling charge of $16.25 is made for each check returned to the Company for any reason. Page 1 of 2 Ordinance No. 1782-11-99 D. Delinquent Notification Charge tM 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 unending mains beyond the free limit established by Franchise for tesidential, commercial, and industrial customers shall be based on the actual cost per foot of the extension. 1 L L Exhibit "A" Page 2 of 2 Ordinance No. 1782-11-99