HomeMy WebLinkAboutOrdinance No. 00-1262 ORIGtt L
CITY OF THE COLONY, TEXAS
ORDINANCE NO. /)e9 -,t,.~:& ~
AN ORDINANCE OF THE CITY OF THE COLONY, TEXAS FINDING
AFTER REASONABLE NOTICE AND HEARING, THAT TXU GAS
DISTRIBUTION'S RATES AND CHARGES WITHIN THE CITY SHOULD BE
CHANGED; DETERMINING JUST 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 FOR REPEAL OF CONFLICTING ORDINANCES.
WHEREAS, the City of The Colony, 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;
WHEREAS, the City of The Colony, in a reasonably noticed public hearing
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;
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, THERFFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF THE COLONY, TEXAS:
SECTION 1. That 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. That 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
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 revenues (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 this
Ordinance shall be adjusted upward or downward from a base per Mcf town 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 Lone Star is unreasonable
and is specifically rejected. The Company is authorized to adjust monthly bills to reflect
changes in municipal franchise 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 charges 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 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 work
papers and supporting data as requested, setting forth the rates, tariffs and charges base
upon the increase 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 Lone Star by U.S. Mail to the
Company's authorized representative, Autry 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 changes of TXU Gas.
SECTION 12. All ordinances, resolutions, or parts thereof, in conflict with this
Ordinance are repealed to the extent of such conflict.
SECTION 13. 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 meetings, was given.
PASSED AND APPROVED, this the /~ day of'7~T(~',~,Og~,~, 2000
ATTEST: A~t}OVED:
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.
1. Customer Charges
Residential $ 7.00
Commercial $12.00