(A) The maximum general service rate for sales of natural gas rendered to residential and commercial consumers within the city limits, by the 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 division (H)(1) of this section.
(B) The residential and commercial rates set forth above shall be adjusted upward or downward from a base of $4.0200 per Mcf by a gas cost adjustment factor expressed as an amount per 1000 cubic feet (Mcf) of natural gas for changes in the intracompany city gate rate charge as authorized by the State Railroad Commission or other regulatory body having jurisdiction for gas delivered to the city distribution system, according to division (H)(2) of this section.
(C) The residential and commercial rates set forth above shall be adjusted upward or downward for changes in taxes and other governmental impositions, rental fees or charges according to division (G)(4) of this section.
(D) The company shall also receive weather normalization adjustments according to division (H)(3) of this section.
(E) In addition to the aforesaid rates, the 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 charges set forth in divisions (H)(5) and (6) of this section are approved. Services for which no charge is set out may be performed and charged for by the company at a level established by the normal forces of competition.
(F) In addition to the aforesaid rates, the Company is authorized to recover the current and any unrecovered prior rate case expense through a surcharge designed for a six-month nominal recovery period. The surcharge per Mcf will 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. The Company will provide monthly status reports to the city to account for the collection of rate case expense.
(G) The rates set forth in this section may be changed and amended by either the city or the company in the manner provided by law. Service hereunder is subject to the orders of regulatory bodies having jurisdiction, and to the company's rules and regulations currently on file in the company's office.
(H) Lone Star Gas Company tariffs and schedules.
(1) Item A. Rates.
(a) Subject to applicable adjustments, 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 same location.
1. Residential:
Customer charge $7.0000
All consumption @ 4.9700 per Mcf
If the service period is less than 28 days in a month the customer charge is $.2857 times the number of days service. If the consumption contains a portion of an Mcf, a pro rata portion of the per Mcf charge will be made.
2. Commercial:
Customer charge $12.0000
First 20 Mcf @ 5.2700 per Mcf
Next 30 Mcf @ 4.9700 per Mcf
Over 50 Mcf @ 4.8200
If the service period is less than 28 days in a month the customer charge is $.5000 times the number of days service. If the consumption contains a portion of an Mcf, a pro rata portion of the per Mcf charge will be made.
(b) Bills are due and payable when rendered and must be paid within ten days from the monthly billing date.
(c) Residential off-peak sales discount: An off-peak sale discount of $.25 per Mcf will apply to residential customer's volume purchased in excess of 8 Mcf for each billing months May through October.
(2) Item B. Gas cost adjustment.
(a) Each monthly bill at the above rates 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. 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") less
b. The base city gate rate of $4.0200 per Mcf, multiplied by
c. A volume factor of 1.0204 determined in establishing the above rates for the distribution system as the ratio of adjusted purchased volumes divided by adjusted sales volumes.
2. Correction of the estimated adjustment determined by division (H)(2)(a)1. of this section shall be included as part of the adjustment. The correcting factor (shown below as division (H)(2)(a)1.b. of this section) shall be expressed to the nearest $0.0001 per Mcf based upon:
a. The corrected adjustment amount based upon the actual city gate rate, less
b. The estimated adjustment amount billed under division (H)(2)(a)1. of this section, 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 division (H)(2)(a)1. and 2. of this section shall be multiplied by a tax factor of 1.05232 to include street and alley rental and state occupation tax due to the change in the company revenues under this gas cost adjustment provision.
(b) In summary, the gas cost adjustment (GCA) shall be determined to the nearest $0.0001 per Mcf by division (H)(2)(a)1. through 3. of this section as follows:
GCA = [division (H)(2)(a)1. + division (H)(2)(a)2.] × division (H)(2)(a)3. of this section.
GCA = [(1.0204) (Re - $4.0200) + C] × 1.05232
(3) Item C.
(a) Weather normalization adjustment. Effective with bills rendered during the October 1995 through May 1996 billing months, and annually thereafter for the October through May billing months, the above residential and commercial consumption rates for gas service, as adjusted, shall be subject to a weather normalization adjustment each billing cycle to reflect the impact of variations in the actual heating degree days during the period included in the billing cycle from the normal level of heating degree days during the period included in the billing cycle. The weather normalization adjustment will be implemented on a per Mcf basis and will be applicable to the heating load of each customer during the period included in the billing cycle. It will be determined separately for residential and commercial customers based on heating degree data recorded by the Wichita Falls weather station. The adjustment to be made for each billing cycle will be calculated according to the following formula:
WNA | NDD - ADD | × M × AHL |
ADD |
Where: WNA = Weather normalization adjustment
NDD = Normal heating degree days during the period covered by the billing cycle
ADD = Actual heating degree days during the period covered by the billing cycle
M = Weighted average margin per Mcf included in the commodity portion of the rates effective during the October through May billing months
AHL = Actual heating load per customer
(b) The heating load to which the weather normalization adjustment is to be applied for residential customers is determined by subtracting the residential class base load from the total volume being billed to the customer. The heating load to which the weather normalization adjustment is to be applied for commercial customers is determined by subtracting the base load for the customer from the total volume being billed to the customer. The base load of a customer is the average level of nonheating consumption.
(c) The weather normalization adjustment is subject to a 50% limitation factor based on temperatures being 50% warmer or colder than normal. The weather normalization adjustment will be calculated to the nearest $.0001 per Mcf.
(4) Item D. Tax adjustment. The tax adjustment shall be an amount equivalent to the proportionate part of any new tax, or any tax increase or decrease, or any increase or decrease of 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 July 1, 1993, upon or allocable to the company's distribution operations, by any new or amended law, ordinance, or contract.
(5) Item E. Schedule of service charges.
(a) Inauguration of service. In addition to the charges and rates set out above, the company shall charge and collect the sum of:
Schedule Charge
8:00 a.m. to 5:00 p.m. Monday through Friday $27.50
5:00 p.m. to 8:00 a.m. Monday through Friday 41.25
Saturdays, Sundays, and holidays 41.25
For each reconnection of gas service, where service has been discontinued at the same premises for any reason, and for each new inauguration of service when the billable party has changed, with the following exceptions:
1. For a builder who uses gas temporarily during construction or for display purposes;
2. For the first occupant of the premises;
3. Whenever gas service has been temporarily interrupted because of system outage, service work or appliance installation done by the company; or
4. For any reason deemed necessary for company operations.
(b) Returned check charges. A returned check handling charge of $13.75 is made for each check returned to the company for reasons of nonsufficient funds, account closed, payment withheld, invalid signature, or improper preparation.
(c) Collection charge. A charge of $7 shall be made for each instance when it is necessary for a company employee to go to a customer's residence or place of business in order to collect amounts owed the company for gas service previously rendered. This charge shall not apply if service is terminated at the time of the collection action. This charge shall apply to only one trip on the same amount owed.
(5) Item E. Main line extension rate. The charge for extending mains beyond the free limit established by franchise, or any free limit established by franchise, for bona fide residential customer shall be the lesser of: the system-wide average cost of construction, including all overheads, for the prior fiscal year; or the adjusted actual cost as determined by applying the latest Handy-Whitman Index to the 1975 actual base cost of $2.94. A bona fide residential customer uses gas for heating and water heating, or the equivalent load thereof, at a minimum. Residential customers other than bona fide residential customers shall pay actual cost for main line extensions beyond the free limit. The company shall file the calculation of such charge with the city as soon as sufficient data is available each fiscal year. Extension to commercial and industrial customers shall be based on actual cost per foot.
(Ord. 417, passed 6-17-85; Am. Ord. 456, passed 2-20-89; Am. Ord.523, passed 8-22-94)