1 The provisions of §§ 19-220, 19-221, and 19-222 are taken from Ord. #93116, September 1993. Section IV of Ord. #93116, states "It is further ordained that this ordinance shall become effective with all bills for gas service rendered after September 25, 1993, the public welfare requiring it."
The rate schedules, except Rate Schedule G-5, of the Cookeville Gas Department shall be adjusted as follows:
(1) Provision for adjustment. The base retail gas rates per one hundred cubic feet (Ccf) of gas set forth in Rate Schedules G-2, G-3, G-4, and G-7 of the Cookeville Gas Department shall be increased or decreased by an amount hereinafter described, which amount shall be called the "purchased gas adjustment" or the "PGA".
(2) Intent and application to various purchases. (a) This purchased gas adjustment is intended to allow recovery on an equitable basis of the total cost of gas purchased, transported, and/or reserved for delivery to the gas sales customers of the Cookeville Gas Department.
(b) The PGA anticipates various sources and costs of purchased gas for general system supply including, but not limited to:
(i) Cost of natural gas purchased from producers, brokers, interstate pipeline or transmission companies, intrastate pipeline or transmission companies, marketers, joint ventures, other distribution companies, and end-users whether or not regulated by the Federal Energy Regulatory Commission.
(ii) Cost of liquified natural gas (LNG) and vaporized LNG.
(iii) Cost of liquefied petroleum gas/air mixture (PA).
(iv) Cost of substitute natural gas (SNG)
(v) Cost of other hydrocarbons used as feedstock for production of substitute natural gas.
(vi) Cost of contractual storage and transportation of items (i) through (v) above.
ANNUAL WEIGHTED AVERAGE COST OF GAS (AWACOG)
The annual weighted average cost of gas shall be computed on the date this amendment becomes effective. This computation shall be used to determine the base retail gas rates. This computation shall be based on all the cost associated with obtaining gas supply, including but not limited to, the cost of gas, demand charges, commodity charges, transportation charges, LNG costs, PA costs, nominating and balancing charges, Order 636 charges, storage costs including: reservation fees, storage injection and withdrawal charges, transition costs, and any other similar charges from any marketer or pipeline transporter.
In order to establish the base retail gas rates, the gas revenues for the twelve (12) month period immediately preceding the effective date of this amendment shall be divided by the Ccf's of gas sold during that period to determine the average revenue per Ccf of gas sold. Operation and maintenance costs, including depreciation, in-lieu-of-tax payments, principal payments, interest expense and any other costs, e.g., normal capital expenditures, normally involved in operating the Cookeville Gas Distribution System shall be added to the computed AWACOG in order to establish the revenue per Ccf required in order to operate the system. The difference between the revenue required and the actual revenue per Ccf for the preceding twelve (12) month period shall be added to each step of Rate Schedules G-2, G-3 and G-4 in order to establish the initial base retail gas rates.
The AWACOG shall be computed monthly. The PGA shall first be triggered when the AWACOG increases or decreases by as much as one-half cent per Ccf compared to the then existing PGA. The increase or decrease shall be reflected on all bills rendered after the 30th day of the month in which the PGA has been triggered. Monthly AWACOG increases or decreases of less than one-half cent per Ccf shall accumulate until the aggregate of the increases or decreases has reached or exceeded one-half cent per Ccf since the last PGA. The PGA shall only apply to increases or decreases in the annual weighted average cost of gas and not to increases in the cost of operating and maintaining the gas system.
(1970 Code, § 13-225, modified)