(A) A utility shall be permitted to file and implement natural gas supply-cost-adjustment rate schedules which provide for adjustment and collection of rates to reflect changes in natural gas supply costs for natural gas sold in the city.
(B) The city may review natural gas supply-cost-adjustment rate schedules. The city shall initiate such review by resolution of the City Council and shall provide a copy of the resolution to the utility at least 30 days prior to the hearing on the issue. The city may request and the utility shall provide all documents and work papers supporting the actually purchased natural gas adjustment amounts charged customers. The city shall give the utility at least 30 days’ prior notice of the time and place of the hearing and a copy of the proposed findings of fact. If, after review and hearing, the city concludes that the utility is charging more than the amount allowed by the natural gas supply-cost-adjustment rate schedule, the city shall order the utility to refund excess amounts collected from customers plus interest at the rate provided for in § 53.27(C). The utility may initiate judicial review of such an order by a municipality, and if it does so, the order of the city shall not take effect during the pendency of such review. The provisions of § 53.27(D)(5) shall be applicable to this section.
(C) Any refund, including interest thereon if any, received by the utility with respect to natural gas purchased under a Federal Energy Regulatory Commission natural gas tariff at the border station of a municipality related to increased rates paid by the utility, subject to refund and applicable to natural gas purchased for resale within the city, shall be passed on to presently served customers by an appropriate adjustment shown as a credit on subsequent bills during a period selected by the utility not to exceed 12 months or by a cash refund at the option of the utility. Refunds unpaid after 60 days from the date of receipt by the utility shall bear interest at the rate set in Neb. RS 45-103.
(D) Nothing contained in this section shall change or modify existing natural gas supply-cost-adjustment rate provisions in an ordinance or franchise agreement without the review specified in division (B) above. The city may initiate an action to change the purchased natural gas supply-cost-adjustment rate schedules under § 53.37.
(Prior Code, § 3-1208)
Statutory reference:
Related provisions, see Neb. RS 19-4609