(A) The rates proposed to be charged for non-contract firm natural gas service within the city shall be based upon the utility’s cost of providing service to the city or the representative costs in that part of utility’s service area which includes the city. The period for which the cost of service is to be recognized shall be a projected 12-month period commencing not later than the proposed effective date of the increase.
(B) The cost of service shall be determined in a manner consistent with regulated public utility practices and shall include:
(1) Appropriate costs as defined and set forth in the Federal Energy Regulatory Commission Uniform System of Accounts Prescribed for Natural Gas Companies FERC Accounts; and
(2) A reasonable return on the utility’s rate base.
(Ord. 2962, passed - -1986)