947.12 GAS COST RECOVERY RATE.

   (a)   Gas Cost Recovery Rate.

      (1)   Scope. The City shall recover through the gas cost recovery rate the gas cost component plus the reconciliation adjustment.

      (2)   Calculation. The formula for calculating the gas cost recovery rate (GCR) shall be as follows:

            GCR = GC + RA

         Where:

   GC    = Gas cost component as determined below, expressed in dollars per Ccf.

   RA   = Reconciliation adjustment as determined below expressed in dollars per Ccf.

      (3)   Application. The above gas cost recovery rate calculation shall be applicable to all Residential Service - Schedule "R" and General Service - Schedule "G" bills.

      (4)   The City shall review and may, at its option, adjust the gas cost recovery rate quarterly or whenever changes in gas acquisition and delivery costs or system operating characteristics cause, or may be reasonably anticipated to cause, an increase or decrease in the gas cost component.

   (b)   Gas Cost Component.

      (1)   Scope. The City shall recover through the gas cost component the annual projected gas costs to be incurred in excess of the amount of gas costs included in the volumetric charge to provide the annual projected gas sales.

      (2)   Calculation. The formula for calculating the gas cost component (GC) shall be as follows:

            GC = PGC - BGC

             PGS

         Where:

PGC   =   Projected gas costs which shall be equal to the sum of the City’s projected gas supply and transportation costs, less amounts projected to be received for such costs from Distribution Delivery Service - Schedule “D”, pre-existing self-help contract customers and electric service purchases from gas system for the projected annual period, expressed in dollars.

PGS   =   Projected gas sales which shall be equal to the projected Residential Service - Schedule “R” and General Service - Schedule “G” customers’ billing Ccf for the projected annual period.

BGC   =   Amount of gas costs included in volumetric charges of $0.2966 per Ccf effective April 1, 2024, and thereafter.

   (c)   Reconciliation Adjustment.

      (1)   Scope. The City shall, through the reconciliation adjustment, either which is set to $0.000 per Ccf effective September 1, 2003, either:

         A.   Recover the actual gas costs incurred during the preceding annual period which were in excess of the gas cost revenues collected, including the amount of gas costs included in the volumetric charge, during that same period; or

         B.   Refund the gas cost revenues collected during the preceding annual period, including the amount of gas costs included in the volumetric charge, which were in excess of the actual gas costs incurred during that same period.

      (2)   Calculation. The formula for calculating the reconciliation adjustment (RA) shall be as follows:

            RA   =   AGC - GCC - BGC

                   PGS

Where:

AGC   =   Actual gas cost which shall be equal to the City's actual gas supply and transportation costs; less actual amounts received by the City for such costs from Distribution Delivery Service - Schedule “D”, pre-existing self-help contract customers and electric system purchases from gas system for the preceding annual period, expressed in dollars.

GCC   =   Gas cost charge which shall be equal to the gas cost recovery charges collected during the preceding annual period under the gas cost component, expressed in dollars.

         (Ord. 2024-3-18. Passed 3-27-24.)