O-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
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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.
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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.
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L Exhibit "A"
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Ordinance No. 1782-11-99