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Ord 131 Determining the Lone Star Gas Company ratesORDINANCE NO. 131 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS IN THE TOWN OF WESTLAKE, - TARRANT COUNTY, TEXAS; PROVIDING FOR THE MANNER 1N WHICH SUCH RATE MAY BE CHANGED, ADJUSTED, AND AMENDED; AND PROVIDING FOR A SCHEDULE OF SERVICE CHARGES. BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS SECTION I. Effective with gas bills rendered on and after thirty (30) days from the final date of passage of this ordinance, the maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the town limits of Wes t:lak&, Texas, by Lone Star Gas Company, a division of ENSERCH CORPORATION, a Texas Corporation, its successors and assigns, is hereby fixed and determined as set forth in Item A, in the Attachment hereto which is incorporated herein. SECTION 2. The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4.3934 per Mcf by a Gas Cost Adjustment Factor expressed as an amount per thousand cubic feet (Mcf) of natural gas for changes in the intracompany city gate rate charge as authorized by the Railroad Commission of Texas or other regulatory body having jurisdiction for gas delivered to the Westlake distribution system, accord- ing to Item B, in the Attachment hereto which is incorporated herein. SECTION 3. Company shall also receive tax adjustments according to Item C, in the Attachment hereto which is incorporated herein. SECTION 4. Rote case expense is not included in the calculation of proposed rates. If rate case expense is incurred in this current case, it is the intention of Lone Star Gas Company to recover the current and any prior rate case expense through a surcharge designed for a six-month nominal recovery period. The surcharge per Mcf would be calculated by dividing the rate case expense to be recovered by one-half of the adjusted annual sales volume to residential and commercial customers. If there is no current rate, case expense, the Company will forego recovery of any unamortized prior rate case expense. When a surcharge is applicable, monthly status reports will be provided to account for the collections. SECTION S. In addition to the aforesaid rates, Company shall have the right to collect such reasonable charges as are necessary to conduct its business and to carry out its reasonable rules and regulations in effect. The service charges set forth in Item D, in the Attachment hereto which is incorporated herein are approved. Services for which no charge is set out in liem D may be performed and charged for by Company at a level established ,.by the normal forces of competition. SECTION 6. The rates set forth in this ordinance may be changed and amended by either the City or Company in the manner provided by law. Service hereunder is subject to the orders of regulatory bodies having juris- diction, and to the Company's Rules and Regulations currently on file in the Company's office. SECTION 7. It is hereby 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. PASSED AND APPROVED on this the A.D. 19�.� ATTEST; Se ' etary /�'fiday of Mayor Town of Westlake, Texas STATE OF TEXAS � COUNTY OF TARRANT 1�-ct Secretary of the Town of Westlake Tarrant County, Texas, hereby certify that the above and foregoing is a true and correct copy of an ordinance passed and approved by the flown council of the town of Westlake at a,� session held on the %1(Way of ,�,. 19 IFIS it appears of record in the Minutes OF said Council in Book Page 6 17 WITNESS MY HAND AND SEAL OF SAID CITY, THIS THE %,ea`, day of A.D. 19-F-3. a SecrJAary Town of Westlake, Texas ATTACHMENT TO ORDINANCE NO. CITY OF WESTLAKE, TEXAS - LONE STAR GAS COMPANY TARIFFS & SCHEDULES Item A. The following rates are the maximum applicable to residential and commercial consumers per meter per month or for any part of a month for which gas service is available at the some location. Summer rates shall be applicable between the meter reading dates in May and October. Winter rates shall be applicable at alb other times. Residential: Customer Charge All Consumption @ Winter Summer $5.0000 5.0000 $5.7685 per Mcf $5.4185 per Mcf If the service period is less than 28 days, the customer charge is $.1786 times the number of days service. Commercial: Winter Summer Customer Charge $8.0000 $8.0000 All Consumption @ $5.7685 per Mcf $5.4185 per Mcf If the service period is less than 28 days, the customer charge is $.2857 times the number of days service. Bills are due and payable when rendered and must be paid within ten days from the monthly billing date. Item B. Gas Cost Adjustment Each monthly bill at the above rate shall be adjusted for gas cost as follows: (1) The city gate rate increase or decrease applicable to current billing month residential and commercial sales shall be estimated to the nearest $0.0001 per Mcf based upon: (a) A volume factor of 1.0220 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes. . (b) The city gate rate estimated to be applicable to volumes purchased during the current calendar month, expressed to the nearest $0.0001 per Mcf (shown below as "Re"). (c) The city gate rate of $4.3934 per Mcf. (2) Correction of the estimated adjustment determined by Item B (1) above shall be included as part of the adjustment for the second following billing month. The correcting factor (shown below as "C") shall be expressed to the nearest $0.0001 per Mcf based upon: (a) The corrected adjustment amount based upon the Octual city gate rate, less (b) The estimatcd adjustment amount billed under Item B (1) above, divided by (c) Distribution system residential and commercial sales Mcf recorded on the Company's books during the prior year for the month that the correction is included as part of the adjustment. (3) The adjustment determined by Items B (1) and Item B (2) above shell be multiplied by a tax factor of 1.04335 to include street and alley rental and state occupation tax due to increasing or decreasing Company revenues under this gas cost adjustment provision. In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by Item B (1), Item B (2) and Item B (3) as follows: GCA � (Item B (1) + Item B (2) x Item B (3) GCA = (1.0220) (Re - $4.3934) + C x 1.04335 Item C. Tax Adjustment The tax adjustment shall be on amount equivalent to the proportionate part of any new tax, or increased tax, or any other governmental imposition, rental, fee or charge (except state, county, city and special district ad valorem taxes and taxes on net income) levied, assessed or imposed subsequent to January I, 1983, upon or allocable to the Company's distribution operations, by any new or amended law ordinance or contract. Item D. Schedule of Service Charges (1) Reconnect Charge In addition to the charges and rates set out above, the Company shall charge and collect the sum of: Schedule Charge 8 a.m. to 5 p.m. Monday through Friday $20.00 5 p.m. to 13 a.m. Monday through Friday $30.00 Saturdays, Sundays and Holidays $30.00 as a reconnect charge for each reconnection or reinouguratson of gas ser- vice_, where service has been discontinued of the same premises for any reason, with the following exceptions. (a) For a huildur who uses gas temporarily during construction or for dis- pl oy purpw s. (b) For the first occupant of the premises. (c.} `,' henevf•r c}as service has been temporarily interrupted because of system outc(Jt-, ss:rvice work or appliance installation done by Company; or (d) for any reason deemed necessary for Company operations. (Z) Returned Check Charges A returned check handling charge of $5 is made for each check returned to the Company for reasons of non -sufficient funds, account closed, payment withheld, invalid signature or improper preparation. Lone Star Gas Company 6 U, R. RENDERS ON Manager 173 Highway 114 West - Grapevine, Texas 761751 October 10, 1983 Mayor Dale White P. 0. Box 27 Roanoke, Texas 76262 Dear Mayor White On June 14, 1983, I filed a Statement of Intent to change the rates charged for natural gas service in Westlake. The proposed rate was reviewed by your Board of Alderman on the 14th day of June 1983. A decision by the Board was to suspend our proposed rate for 120 days to allow the Town sufficient time to gather information and review and analyze the proposed change. Wisdom and cooperation manifested by the Westlake Town Council and the City Councils of Southlake and Grapevine during the last rate hearings resulted in identical rates for current gas service to the three cities. This removed the discriminatory aspact of customers being charged different rates for natural gas from the same distribution mains just because they live in separate municipalities. City boundry lines do not alter the cost of service and an economically sound gas system cannot always be structured within municipal limits. Therefore, the Grapevine Distribution System is the most economical approach and is one which results in the lowest possible gas rates for our citizens and customers. Please allow me to request and encourage your continued cooperation with the other municipalities in this gas distribution system so that identical rates which are just and fair to all concerned may be adopted by ea,fh of the three cities involved. After several meetings with the City Council of Grapevine and a work- shop with their Utility Committee, the City of Grapevine adopted an ordinance on first reading October_ 4, 1983, Attached is a proposed ordinance that is identical to the one passed by the Grapevine Council. The ordinance approved by Grapevine changed the customer charge from the $6.00 and $4.00 residential and $10.00 and $6.00 commercial to a flat $5.00 residential and $8.00 commercial customer charge. By making this change, it has lowared the consumers winter bill and raised the summer bill. During periods of high consumption this rate will provide some relief to the Logia Income and the Elderly. Page 2 Mayor White Let me assure you that T stand ready to assist in every possible way as you evaluate the Grapevine Ordinance. Hopefully, the Board of Alderman will accept the Grapevine Rate which will allow continued identical rates throughout the Westlake., Southlake and Grapevine area. Should you have any questions, please call me at 488-7561. d `�r V. R. Henderson VRH/ kf cc: Mr. Steve Morath Mr. G. L. Smith