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Ord 93 Determining the Service Rate for the sales of natural gasORDINANCE 93 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS WITHIN THE TOWN LIMITS OF 1gRgTTA_KF _ DENTON AND TARRANT COUNTY, TEXAS, AND PROVIDING: FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED.AND AMENDED. BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE: SECTION 1. Effective with the first gas bills rendered from and after thirty (30) days from the date of final 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 Westlake by Lone Star Gas Company, a Texas corpora- tion, its successors and assigns, is hereby fixed and determined as follows: First 1,000 Cu. Ft. or Fraction Thereof $3.1277 Gross; $2.8149 Net Next 3,000 Cu. Ft. @ $1.9388 Per Mcf Gross; $1.7449 Per Mcf Net Next 6,000 Cu. Ft. @ $1.8166 Per Mcf Gross; $1.6349 Per Mcf Net Next 15,000 Cu. Ft. @ $1.7277 Per Mcf Gross; $1.5549 Per Mcf Net Next 75,000 Cu. Ft_ @ $1.6610 Per Mcf Gross; $1.4949 Per Mcf Net Over 100,000 Cu. Ft. @ $1_6277 Per Mcf Gross; $1.4649 Per Mcf Net No gas bill will be rendered to any residential or commercial consumer served under the above rate not consuming any gas during any monthly billing period, except that where customer's only use for gas service is in an outdoor grill and/or a fireplace starter, the amount shown for the first consumption block shall constitute a minimum monthly bill. ADJUSTMENTS The amount of each net monthly bill computed at the above - stated rates shall be subject to the following adjustments: Plus or minus the amount of any increase or decrease, respectively, above or below the $1.0399 per Mcf level in the intracompany city gate charge as authorized by the Railroad Commission of the State of Texas or other regulatory body having jurisdiction for gas delivered to Lone Star Gas Company's distribution system for sale to residential and commercial consumers where such changes are caused by increases or decreases in the cost of gas purchased by the company; plus an amount equivalent to the proportionate part of any new tax, or increased tax, or any other govern- mental 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 July 1, 1975, upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. Each gross monthly .bill shall be adjusted proportionately. Company, at its option, may forego the application of any adjustment if such adjustment would result in an increase in the monthly bill; how- ever, failure of Company to apply any adjustment shall not constitute a waiver of Company's right from time to time, or at any time, to make any adjustment, in whole or in part, in any subsequent current monthly bill that may be applicable to such bill. Net rate shall apply to all bills paid within ten days from monthly billing date; gross rate shall be applicable thereafter. The above rate is applicable to each residential and coraner- cial consumer per meter per month or for any part of a month for which gas is used at the same location. 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. SECTION 2. The rate set forth in Section 1 may be changed and amended by either the Town or Company furnishing gas in the manner provided by law. Service hereunder is subject to the orders of regula- tory bodies having jurisdiction, and to the Company's Rules and Regu- lations currently on file in the Company's office. SECTION 3. 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 ,'. f- day of it , R.D. 1975. -- ATTEST: f i S,/ retary / Mayor Town of Westlake Texas, -2- STATE OF TEXAS X X COUNTY OF TARRANT & X DENTON I. Secretary of the Town of Westlake i, Denton and Tarrant County, Texas, hereby certify that the above and foregoing is a true and correct copy of an ordinance passed and approved by the Board of Aldermen of the Town of Westlake at a it i sessio held on the f-` -day of",19 75 as it appears of reqc-rd in the Minute_As7M in Book *W page WITNESS MY HAND AND SEAL OF SAID TOWN, this the ay of A.D. 19 75. Seq,6etary Town of Westlake Texas -3- f� 1 LONE STAR GAS COMPANY AMENDED APPLICATION TO THE TOWN OF WESTLAKE FOR APPROVAL OF COMPANY PROPOSED RESIDENTIAL AND COMMERCIAL RATE SCHEDULE FOR NATURAL GAS SERVICE TO THE HONORABLE MAYOR AND BOARD OF ALDERMEN__ OF THE TOWN OF WESTLAKE On January 20, 1975, Lone Star Gas Company filed with the Railroad Commission of Texas, in Gas Utilities Docket No. 588, an application seeking an increase in its intracompany city gate charge for gas delivered by its Transmission Division to the Distribution Systems of the cities and towns receiving gas service from Lone Star. After a scheduled hearing on this application, the Railroad Commission did set, on April 28, 1975, an interim gate rate of 94.19 cents per Mcf to be charged by the Transmission Division, until a final order was issued in the matter establishing a permanent city gate rate. Subsequently, Lone Star did file with you an application to increase gas rates in your city or town, as a result of the interim city gate rate. On the 30th day of June, 1975, the Railroad Commission did issue its final Opinion and Order in Gas Utilities Docket No. 588, therein setting for your city a permanent intracompany city gate charge of $1.0399 per Mcf for gas delivered at the city gates. In view of the fact that no final action has been taken by you with respect to Lone Star's rate application, based upon the interim gate rate, Lone Star respectfully requests permission to amend the pending rate application, so as to reflect the new city gate rate charge of $1.0399 per Mcf as set out in the Commission's final Order. documents: In requesting this amendment, we submit herewith the following (1) Proposed Residential and Commercial Rate Ordinance; and (2) Railroad Commission Order in GUD 588; and (3) Distribution Income Statement. This amendment reflects no change in the computation of proposed rates, except for adjusting the city gate rate charge from 94.19 cents to $1.0399 per Mcf. Lone Star Gas Company does respectfully request that your Honorable body allow this amendment to its application, and ask that this amended application and proposed rate ordinance be placed upon the agenda of your next open meeting for consideration and passage. Date Presented: Respectfully submitted, LONE STAR GAS COMPANY 'p51 BY ,L2 r -2- AVERAGE NUMBER OF MID—CITIES CONSUMERS Gas Received From: Residential 2 375 Commercial 191 Industrial 18 Other Pub. 2 Authorities and a Part D.,,17RIBUTION SYSTEM OPERATIONS TWELVE MONTHS, ENDED DECEMBER 31 , 1974 GRAPEVINE* Town or Location GRAPEVINE District or Zone Census re7n 9 182 2 586 MID—CITIES TARRANT Gas Received From: Tocol DISCOUNTS ...... TRANSMISSION DIVISION 781 Division • Region County Nome of Company Rate *Includes SouthlakeWestlake and a Part of D/FW Regional Airport Located Inside Grapevine City Limits. HOT UNACCOUNTED FOR M. CU. FT. 7693 REVENUES T---- s _ DISCOUNTS ...... AVERAGE 430 ----I OTHER PUBLIC AUTHOR t. OPERATING REVENUES s OZ. 10 707 0 AT NET 31� HOT UNACCOUNTED FOR 477 28117 AMOUNT 1_304 PRESSURE BASE 33 TARIFF RATES TAKEN PRICE s 443876 601 GAS SALES: 113'349 58 RESIDENTIAL 1 207 769 3 s_252 912 38 s 7 594 00 s_1.2538 s 260_506 38 COMMERCIAL 62 958 8 60 415 12 1 314 — 70 .9805. 0 51_ 61 219 _729 628 82 77 --- INDUSTRIAL 105 0 219 439 54 189 23 —1430 _ OTHER PUBLIC AUTHOR. 1 10 707 0 _ 8 452 65 1_ 7895 _6 8 452 — 65 OTHEROTHER 54 O 49 93 _ 9246 _ _ _4993 TOTAL GAS SALES .711 594 1 s 541 269 62S-9097 93 1S 7734 s 550 367_55 OPER. REVENUE - 158 63 rt6 TOTAL OPER REVENUES #- _ S $K _--I-S 556 526 1 _ OPERATING EXPENSES I GAS PURCHASED'. _I RESIDENTIAL 1 207 7693 COMMERCIAL ---�-_ T---- s _ 629588 ...... INDUSTRIAL 430 105_0 OTHER PUBLIC AUTHOR t. 685 10 707 0 COMPANY USED GAS ---I I 31� 154-1 UNACCOUNTED FOR 477 28117 7 TOTAL GAS PURCHASE 739 865 9 DISTRIBUTION EXPENSE: OPERATIONS MAINTENANCE CUSTOMERS' ACCOUNTING EXPENSE _ SALES PROMOTION EXPENSE ADMINISTRATIVEAND GENERAL EXPENSE UNCOLLECTIBLE BILLS(ACTUAL) TAXES I EXCLUDE FEDERAL TAXES ON INCOME( TOTAL OPERATING EXPENSES NET OPERATING INCOME (EXCLUDING MDSE.. DEPR'N. AND FEDERAL TAXES ON INCOME) MER"HANDISE REVENUE - NET PROVISION FOR DEPRECIATION HET OPERATING INCOME (BEFORE FEDERAL TAXES ON INCOM EI PROVISION FOR FEDERAL TAXES ON INCOME _ HETINCOME PLANT INVESTMENT PER BOOKS- DECEMBER 31, 1974 PER CENT OF PLANT INVESTMENT 53 �s .4824 — .4289 5547 _.4775 _.2922 2774 s 100 22221' 30.549 57 1_84 472_73] 5_939_10 73 59 1__-8 214 85 _.4852 T---- s _ _ ...... 1 14 98 1 NET OPERATING INCOME (EXCLUDING MDSE.. DEPR'N. AND FEDERAL TAXES ON INCOME) MER"HANDISE REVENUE - NET PROVISION FOR DEPRECIATION HET OPERATING INCOME (BEFORE FEDERAL TAXES ON INCOM EI PROVISION FOR FEDERAL TAXES ON INCOME _ HETINCOME PLANT INVESTMENT PER BOOKS- DECEMBER 31, 1974 PER CENT OF PLANT INVESTMENT 53 is 329 487 03 — 1,---___. T---- s _ --.. 20 1_2_418 21.7_39 _ 50 _ _L_ ' 21 685 48 1 _ 7 294 31� __ 21 477 64 1_304 33 29_291 92J s 443876 601 113'349 58 5 AN ORDINANCE FIXING AND DETERMINING THE GENERAL SERVICE RATE TO BE CHARGED FOR SALES OF NATURAL GAS TO RESIDENTIAL AND COMMERCIAL CONSUMERS WITHIN THE TOWN LIMITS OF WP.gTT.AKF. . DENTON AND TARRANT COUNTY, TEXAS, AND PROVIDING FOR THE MANNER IN WHICH SUCH RATE MAY BE CHANGED, ADJUSTED AND AMENDED. BE IT ORDAINED BY THE BOARD OF ALDERMEN OF .THE TOWN OF WESTLAKE: SECTION 1. Effective with the first gas bills rendered from and after thirty (30) days from the date of final 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 Westlake by Lone Star Gas Company, a Texas corpora- tion, its successors and assigns, is hereby fixed and determined as follows: First 1,000 Cu. Ft. or Fraction Thereof $3.1277 Gross; $2.8149 Net Next 3,000 Cu. Ft. @ $1.9388 Per Mcf Gross; $1.7449 Per Mcf Net Next 6,000 Cu. Ft. @ $1.8166 Per Mcf Gross; $1.6349 Per Mcf Net Next 15,000 Cu. Ft. @ $1.7277 Per Mcf Gross; $1.5549 Per Mcf Net Next 75,000 Cu. Ft. @ $1.6610 Per Mcf Gross; $1.4949 Per Mcf Net Over 100,000 Cu. Ft. @ $1.6277 Per Mcf Gross; $1.4649 Per Mcf Net No gas bill will be rendered to any residential or commercial consumer served under the above rate not consuming any gas during any monthly billing period, except that where customer's only use for gas service is in an outdoor grill and/or a fireplace starter, the amount shown for the first consumption block shall constitute a minimum monthly bill. ADJUSTMENTS The amount of each net monthly bill computed at the above - stated rates shall be subject to the following adjustments: Plus or minus the amount of any increase or decrease, respectively, above or below the $1.0399 per Mcf level in the intracompany city gate charge as authorized by the Railroad Commission of the State of Texas or other regulatory body having jurisdiction for gas delivered to Lone Star Gas Company's distribution system for sale to residential and commercial consumers where such changes are caused by increases or decreases in the cost of gas purchased by the Company; plus an amount equivalent to the proportionate part of any new tax, or increased tax, or any other govern- mental 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 July 1, 1975, upon or allocable to the Company's distribution operations, by any new or amended law, ordinance or contract. Each gross monthly bill shall be adjusted proportionately. Company, at its option, may forego the application of any adjustment if such adjustment would result in an increase in the monthly bill; how- ever, failure of Company to apply any adjustment shall not constitute a waiver of Company's right from time to time, or at any time, to make any adjustment, in whole or in part, in any subsequent current monthly bill that. may be applicable to such bill. Net rate shall apply to all bills paid within ten days from monthly billing date; gross rate shall be applicable thereafter. The above rate is applicable to each residential and commer- cial consumer per meter per month or for any part of a month for which gas is used at the same location. 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. SECTION 2. The rate set forth in Section "I"may be changed and amended by either the Town or Company furnishing gas in the manner provided by law. Service hereunder is subject to the orders of regula- tory bodies having jurisdiction, and to the Company's Rules and Regu- lations currently on file in the Company's office. SECTION 3. 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. //Jr PASSED AND APPROVED on this the u y.7 �x. kiay of (X , A.D. 1975 ATTEST: Se retary Mayor Town of We quake Texas -2- OTATE OF TEXAS X COUNTY OF TARRANT & X DENTON I, ,iy,.._ , Secretary of the Town of _ Westlake Denton and Tarrant County, Texas, hereby certify that the above and foregoing is a true and correct copy of an ordinance passed and approved by the Board of Aldermen of the Town of Westlake at a session held on the D day of W 19-75 as it appears of record in the Minutes of said in Book page — ,A ---MLTNESS MY HAND AND SEAL OF SAID TOWN, this the ..2 day of A.D. 19 75. Secr`e'tary Town of Westlake'" Texas -3- RAILROAD COMMISSION OF TEXAS GAS UTILITIES DIVISION IN RE: APPLICATION OF LONE STAR GAS COMPANY AND GAS UTILITIES LSG TRANSTEXAS GAS COMPANY FOR AN INCREASE IN LONE STAR GAS COMPANY'S INTRACOMPANY CITY CATE DOCKET NO, 588 CHARGE AND INCREASE THE GAS COST AD,)USTMENT. OPINION AND ORDEROFTHE COMMISSION STATEMENT OF rHE CASE On January 20, 1975, Lone Star Gas Company (Lone Star) and LSG Transtexas Gas Company (Transtexas) filed with the Railroad Commission of Texas (Commission) its application seeking an increase in its intracompany city gate rate charge and/or operating expense for the gas delivered for distribution to domestic and commercial customers and for unaccounted for gas and an increase in its gas cost adjustment. Lone Star is a gas utility company within the meaning of Article 6050, V.A.CoS., 1925, as amended, serving cities, towns, and villages in Texas by and through a network of transmission and distribution pipelines. The Transmission Divi- sion of Lone Star purchases, gathers, and delivers natural gas through its pipeline system to the city gates of the cities, towns, and villages served by the Distribution Division of Lone Star, for which an intracompany charge is made. Notice of Hearing was given pursuant to Articles 6053 and 6054, V,A.C.S_ 1925, as amended, by requirements in the Cormission's Order of February 3, 1975, to file the subject application with all cities, towns, and villages at which Lone Star delivers gas, and to give notice to the public generally. Pursuant to the Commission's Order docketing Lone Star's application, the direct case was filed by written testimony by Lone Star, by mailing dated February 19, 1975. Hearings were thereafter held at the Ernest 0. Thompson Building in Austin, Texas, duly convened pursuant to notice on March. 3, 1975, and continuing with- out unnecessary delay, for Lone Star to present its direct evidence and testi- mony, for the Texas Utilities Advisory Council, representing over one hundred (100) cities, towns, and villages served by Lone Star, to present its evidence and testimony in support of its direct case, and for cross-examination, rebuttal and closing. Said hearings concluded March 6, 1975, and are the evidence and issues of record before the Commission for consideration and decision. On June 18, 1975, Texas Utilities Advisory Council and Lone Star Gas Company filed a joint motion to expedite the above named and numbered cause requesting that the Examiner's Report and Recommended Order, Exceptions and Replys to Exceptions be omitted; that a final order be entered before )one 30, 1975; and that the parties be given opportunity to present argument directly to the Commission prior to entry of the final order. On June 23, 1975, in Conference, the Commission granted the notion to expedite this cause finding good cause, and heard oral argument from all interested parties on June 26, 1975. THE COMMISSION FINDS that the application of Lone Star Gas Company and LSG Transtexas Company requested an order granting (I) an increase to the domestic gate rate charge established August 12, 1969, in Gas Utilities Docket No. 419, as increased by certain cost adjustments permitted by Commission Order dated August 26. 1974, in Gas Utilities Docket No. 507, and (ii) an increase In the basic components and adjustments of the purchased natural gas cost adjustment clause perTnitted by Commission Order dated March 3, 1972„ in Gas Utilities Docket Mc•. 453; and that said request was opposed by the Texas Utilities Advisory Council, with temporary rates authorized by Order of the Commission issued April 28, 1975, on motion of Lone Star, to a total interim rate of 94.190/Mcf with temporary suspension of the purchased gas adjustment clause, finding that the recent rapid increases of gas costs experienced by Lone Star Gas Company and the inherent time lag associated wit;. the recovery of those increased gas costs through a full rate determination created an emergency of such a nature as to require such interim rate relief. FINDINGS AND CONCLUSION (1) The application filed herein by Lone Star and Transtexas was properly filed in accordance with the provisions of Articles 6053 and 6054, V.A.C.S., 1925, amended, and that the Commission has jurisdiction to hear the application, (2) Proper Notice of Nearing before the Comrission on March 3, 1975, was given to all cities, towns, and villages served by Lone Star. The application was protested by the Texas Utilities Advisory Council representing more than 100 cities, towns, and villages. (3) Lone Star and Transtexas are gas utilities within the meaning of Article 6050, V.A.C.S., 1925, as amended. (4) The authorized intracompany city gate charge and/or operating expense for domestic and commercial usage and unaccounted for gas is based upon a weighted average cost of gas purchased by Lone Star during February, 1975, of 72.29 cents per Mcf, (5) A rate of return of eight percent (8%) is necessary to enable Lone Star to attract sufficient capital to meet its demands for service, maintain and expand its properties and plant, discharge its public duties, and to provide a fair return for the investors in its securities. (6) Lone Star's Transmission Division's plant and property, ex- cluding the IGS System, is found to be used and useful in rendering domestic and commercial natural gas service to the cities, towns, and villages in Texas. The fair value rate base of Transmission Division, excluding the IGS System is $162,045,665. LEG Transtexas Gas Company's plant and property is found to be used and useful in rendering domestic and commercial natural gas service to the cities, towns, and villages in Texas. For purposes of this expedited case, Transtexas' cost of service is treated as an expense item for Transmission Division. (7) A city gate rate of $1.0399 and $T.0799per Mef hereinafter set forth for the cities listed in Exhibit "B" will produce approximately the aforesaid fair return upon said fair value of Lone Star's Transmission Division and Transtexas' plant and properties, (8) The public interest requires the continuation of a gas cost adjustment rule due to the rapidly spiraling cost of gas and the effect of regulatory lag, since timely relief will benefit both Lone Star and the cities, towns, and villages it serves. (9) The city gate rate charge for domestic and commercial usage and unaccounted for gas, as authorized in this Order, should be increased or decreased by eighty-five percent (85%) of the amount by which the weighted average cost of purchased gas during the base period is more or less than 72.29 cents per Mcf, computed to the nearest one-hundredth of one cent (1/100th of 1$) as here- in more fully set forth in Exhibit "A". ORDER OF THE COMMISSION In the above mentioned and entitled cause, the Railroad Commission of Texas, having heard the evidence presented pertaining to the matters therein involved and having carefully considered the same, filed its Interlocutory Order dated April 28, 1475, and having on the 26th day of June, 1975, at the request of the interested Parties, heard the presentation of Counsel and the Parties herein having waived the Examiner's Report and Recommended Order and Excep- tions and Replies thereto, and in lieu thereof having presented their cases M directly to the Commission by argument of Counsel, all of which are considered a part of this Opinion and made a part of this Order, issues this its Final order. The motion of Texas Utilities Advisory Council, made herein to treat the cost of Lo -Vaca gas as set forth in Gas Utilities Docket No. 500 dated January 28, 1975, as any other cost of gas to be included as a part of the weighted average cost of gas is hereby granted. The weighted average cost of gas as set forth herein includes such cost as a cost of purchased gas. IT IS, THEREFORE, ORDERED BY THE RAILROAD COMMISSION OF TEXAS that (1) the gate rate for domestic, commercial, company used and unaccounted for gas to be charged by Lone Star for its delivery of natural gas to all cities, towns, and villages served by Lone Star shall not exceed (except as set forth in E2] below) $1.0399 per Mcf, as adjusted pursuant to the gas cost adjustment clause attached to this Order as Appendix "A"; (2) Because of unusual unrecovered expense paid by the city distributor for the cities set forth in Exhibit "B" in the amounts shown therein, the city gate rate to be charged by Lone Star Transmission Division to those cities shall be adjusted by four cents (44) per Mcf to allow recovery of said expense to $1.0799 per Mcf and further adjusted Durs�jant to the gas cost adjustment clause attached to this Order on Appendix "A". Lone Star Distribution Division shall be authorized to retain any of its unrecovered cost which it has already paid to the Trans- mission Division of Lone Star Gas Company out of all amounts collected over and above the sum of $1,0399 per Mcf and at such time as the unrecovered cost applicable to any city or the distribution system shall have been recovered in the manner set out herein, the intracompany gate rate to be charged and appli- cable to said city shall be reduced by 4t/Mcf. After recovery of said expenses Ione Star Gas Company will not be permitted to charge said 4¢/Mcf which will reduce the local rate then in effect by at least 4Q/Mcf. (3) As to all of those cities listed in Exhibit "B", Lone Star shall file monthly a certified statement with the Commission and each city which shall show the total amount of the unrecovered expense authorized to be recovered, the amount recovered to date of the report, and the amount remaining authorized to be recovered. When the total amount has been recovered, Lone Star shall notify the Commission and each city of such fact within 15 days thereafter. IT IS FURTHER ORDERED that a new purchased gas cost adjustment rule be approved, pursuant to the evidence of record of continuing rapid escalation in the weighted average cost of gas; that said rule attached hereto as Appendix "A" shall replace the rule heretofore approved in Gas Utilities Docket No. 453, and that adjustments to the purchased gas cost component of the city gate rate as found and established in this Order shall be made pursuant to the subject purchased gas cost adjustment clause attached hereto as Appendix "A" and incorporated herein for all purposes. If any provision of this Order is declared invalid by any tribunal, or if the application of any part of this Order Is declared invalid, the remaining provisions or proper application of said Order shall not be affected thereby, and it shall be construed to be the intent of this Commission to make this Order without any such unconstitutional, inoperative or invalid part therein or improper application thereof, and this Order in such event shall be so limited. M IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that said new gate rate charge and said gas cost adjustment rule, as set out above, be effective on and after July 1, 1975. The foregoing Opinion and Order are hereby approved, adopted, and ordered filed as the Opinion and Order of the Railroad Commission of Texas. DONE AT AUSTIN, TEXAS, this the 30th day of June, 1975. RAILROAD COMMISSION OF TEXAS COMMISSIONER loor xJ � � I ;`.. EXHIBIT A PURCHASED GAS COST ADJUSTMENT RULE -- ADJUSTMENT: The authorized intracompany city gate charge and/or operating expense for domestic and commercial usage and unaccounted for gas is based upon a weighted average cost or price of gas purchased by Lone Star Gas Com- pany of 72.29 cents per Mcf. The intracompany city gate charge and/or opera- ting expense for domestic and commercial usage and unaccounted for gas shall be increased or decreased by eighty-five percent (85%) of the amount by which the weighted average cost of purchased gas during the basing period as described below is more or less than 72.29 cents per Mcf to the nearest one-hundredth of one cent (1/100th of It) per Mcf. WEIGHTED AVERAGE COST OF GAS. The weighted average cost of gas shall be determined monthly. For the purpose of this rule, the weighted average cost of gas shall be the lesser of: (a) the weighted average price of gas purchased by Lone Star from all sources including payments to Lo -Vaca Gathering Company in excess of contract price; or (b) the weighted average price of gas purchased by Lone Star from nonaffiliated suppliers including payments to Lo -Vaca Gathering Company in excess of contract price to the nearest one-hundredth of one cent (1/100th of It) per Mcf during each purchase period defined above. Liquid natural gas (LNG), synthetic natural gas (SNG) and gas from coal gasification plants shall not be included in Lone Star's weighted average cost of gas without prior Commission approval. PROCEDURE. Lone Star shall, on the 10th day of each month file with the Commission its certified statement of the weighted average cost of purchased gas and the gas cost adjustment as described above. In addition, a copy of the statement shall be transmitted to each incorporated city or town served by Lone Star. Upon determination of the accuracy of the statement by the Commission, or if after ten (10) days from the date of filing, no action is taken by the Commission, a new domestic and commercial city gate rate shall become effective in the event such statement reflects a higher or lower weighted average cost of purchased gas. If any incorporated city or town served by Lone Star wishes to protest the accuracy of such statement, such protest shall be made within ten (10) days of the date such statement was filed. Upon such protest ahearing shall be set by the Commission to establish the accuracy of the statement filed by Lone Star. The burden of proof in such hearing shall be upon Lone Star, and at the hearing the only issue to be determined shall be the accuracy of such statement. If, upon protest, a final determination is made by the Commission that the weighted average cost of gas should be either higher or lower than reflected on the certified statement in question, then Lone Star shall make a corresponding adjustment in a certified statement to be filed on the first day of the month next after the final determination has been made by said Commission. EXHIBIT B 1. Gainesville $47,260 2. Saint Jo $3,665 3. Mexia $18,721 4. Bonham $25,470 5. Sulphur Springs $37,690 6. Irving $278,594 7. Flower Mound $1,720 8. Watauga $9,531 9. Granbury $8,822 10. Burkburnett $27,145 11. Electra $13,538 12. Quanah $17,658 13. Vernon $44,491 14. Wellington $13,413 15. Wichita Falls $283,965 16. Lewisville $38,537 17. Richardson $178,352 18. Grand Prairie $144,526 -,$AILROAD COMMISSION OF TEXAS DOCKET • . ORDER • $1.40 -- GAS RATE APPLIED FOR BY 1.30 LONE STAR GAS COMPANY $1.2029 1.20 iii�i' i'i'�'iiiiii!iilii GATE RATE ESTABLISHED BY !,!i $0.4800 i�!�� RAILROAD COMMISSION 1.10 Transmission Division !i'' IN GUD-588 Cost of Service Excluding $L0399. COST OT Gas1.00 $0,3170 i i i Transmission Division � i Cost of Service .90 Excluding Cost of Gas .80 .70 / $0.2526 $0.7229 a 60 Jan. 28, 1975 Feb. Base Cost 1 Lo -Vaca G.C.A. �, / r S� i 1 / .50 .40 ...'$0.4703........ Feb. Base Cosi .30i Tomei L vllf (�1'�y,��f��� %-`��/ }fie .10 $ 0.00 * Cost of Service Includes Operating 8, Maintenance Expense,Taxes, Depreciation and Return on Rate Base.