(a) (1) The gas rates set out in § 15-224 shall be the base gas rate for the city. The base costs used to establish the above rates is $2.50 per 1,000 cubic feet (MCF). Whenever the cost of natural gas purchased by the city changes, the rates as provided in § 15-224 shall be reduced or increased, as the case may be, by the same amount per 1,000 cubic feet, in dollars and cents as the rate alteration to the city from its supplier.
(2) Any such rate adjustment for the cost of the purchased natural gas shall be determined as follows.
(A) Referring to the monthly invoice from the supplier, the cost of natural gas per 1,000 cubic feet shall be determined.
(B) Next, the alteration in such cost from the previous rate in dollars and cents per 1,000 cubic feet shall be calculated.
(C) The rates as established in § 15-224, including the minimum, will be raised or lowered as the case may be, by the same dollars and cents amount as the cost to the city was altered and shall be applied to the previous rate and such newly calculated rate will be charged to customers for the next billing period.
(b) Any monetary refunds received by the city from the supplier shall be deducted from the actual cost of natural gas on the next invoice period. However, if such refund results in a decrease of more than 10% from the rates that would have been charged in the absence of such a refund, such refund shall be spread over sufficient months that it does not exceed such 10% reduction figure.
(Prior Code, § 15-231)