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HomeMy WebLinkAboutOrdinance No. 99-1154· ' ' 0RI$1NAL CITY OF THE COLONY, TEXAS ORDINANCE NO. AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS FINDING, AFTER REASONABLE NOTICE AND HEARING, THAT TXU 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 TXU LONE STAR GAS COMPANY; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of The Colony, Texas ("City"), acting as a regulatory authority, has previously suspended the effective date of TXU Lone Star Gas Company's {"Lone Star") application to increase rates in the City in order to study the reasonableness of that application; and WHEREAS, on October 5, 1999 the City of The Colony on November 15, 1999 considered TXU Lone Star's application and a report from the City's consultants who were retained to evaluate the merits of TXU Lone Star's application in a reasonably noticed public hearing; and WHEREAS, the City has determined that TXU Lone Star's rates within the City should be changed and that TXU Lone Star's application should be granted, in part, and denied, in part. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the existing rates and charges of TXU Lone Star 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. That it is hereby ordered that TXU 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 The Colony are authorized to change from test year levels, exclusive of changes in service charges in the following manner: decrease $36,938 for residential customers and decrease $19,349 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 TXU Lone Star is adopted. The Plan Investment and Cost of Service automatic adjustment clauses proposed by TXU Lone Star are unreasonable and are specifically rejected. TXU Lone Star is authorized to adjust monthly bills to include any municipal franchise fee, street and alley assessment or state occupation 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 changes 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 TXU Lone Star is ordered to provide commercial and residential residents of the City of The Colony the benefits of any agreement or order applicable elsewhere in the Northeast Metro Distribution System. SECTION 8. TXU Lone Star 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 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 TXU Lone Star's application are reasonable and are to be paid by TXU Lone Star and recovered from ratepayers through a system-wide surcharge spread over a six month period. TXU Lone Star 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 16, 1999. SECTION 11. This Ordinance shall be served on TXU Lone Star by U.S. mail to TXU Lone Star's authorized representative, Ms. Cheryl McKinnis. 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 TXU 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. PASSED AND APPROVED, this the 15th day of November, 1999. APPROVED: ATTEST: William W. Manning, Mayor'~~ Patti A. Hicks, City Secretary EXHIBIT A TXU LONE STAR GAS COMPANY NORTHEAST METRO DISTRIBUTION SYSTEM SCHEDULE OF SERVICE CHARGES A. In addition to the charges and rates set out above, TXU Lone Star shall charge and collect the sum of: Schedule Charge Business Hours $35.00 After Hours $52.50 For each reconnection of gas service where service has been discontinued at the same premises for any reason, of 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 purpo ses; (b) Whenever gas service has been temporarily interrupted because of system outage or service work done by TXU Lone Star; or (c) For any reason deemed necessary for TXU Lone Star operations. B. Read for Change Charge A read for change charge of $12.00 is made when it is necessary for a TXU Lone Star 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 TXU Lone Star for any reason. D. Delinquent Notification Charge A charge of $4.75 shall be made for each trip by a TXU Lone Star employee to a customer's residence or place of business when there is an amount owed to TXU Lone Star 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 TXU Lone Star. 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.