O-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
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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